Amway was recognized as this year’s new No. 1 direct selling company in the DSN Global 100 ranking.
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IN THIS ISSUE:
Direct Selling News celebrated the DSN Global 100 ranking on April 3 at the Gaylord Texan Resort in Grapevine, Texas, with a dinner and awards ceremony. The event marked the fourth consecutive year that DSN has recognized the achievements of the global direct selling leaders.
The event was hosted by DSN Publisher and Editor in Chief John Fleming. Brian Connolly, Chairman of the Board of Miche Bag and former Executive Vice President of Avon Products Inc., served as master of ceremonies.
More than 300 direct selling executives attended the event, including Cindy Monroe, CEO of Thirty-One Gifts; Jim and Kathy Coover, Co-Founders of Isagenix; Wayne Coupland, Network Director of Telecom Plus; Jerry Brassfield, Executive Chairman of GNLD; John Addison, Co-CEO of Primerica; Rob Snyder, Chairman of Stream Energy (Ignite); Connie Tang, CEO of Princess House; Chris Chambliss, a Co-Founder of Ambit Energy; Dave Wentz, CEO of USANA; Robert Goergen Jr., President of PartyLite; Keith Harding, CEO of Sportron; Robert Sinnott, CEO of Mannatech; Ryan Blair, CEO of ViSalus; Jill Blashack Strahan, CEO of Tastefully Simple; Mike Azcue, CEO of WorldVentures; and Orville and Heidi Thompson, Co-Owners of Scentsy.
Special guests included Joseph Mariano, President of the U.S. Direct Selling Association; Charlie Orr, Executive Director of the Direct Selling Education Foundation (DSEF); and two DSEF Circle of Honor winners: J. Stanley Fredrick, Chairman of Mannatech; and Michael Lunceford, Senior Vice President of Mary Kay. Malou Caluza, Chief Marketing Officer of QNET, traveled from Hong Kong to attend the event.
The Bravo Awards
The evening began with the presentation of two DSN Bravo Awards for excellence.
It Works! Global was honored with the Bravo Momentum Award, which was created for this year’s celebration to recognize a previously unranked company that had demonstrated not only significant growth in 2012, but also the most significant first-time ranking on the DSN Global 100 list.
“It just shows any company in here that if you really focus and persevere you can do this—you can be a 10-year overnight success.”
—Mark Pentecost, Founder and CEO, It Works! Global
Founder and CEO Mark Pentecost had attended last year’s event and decided then that he wanted It Works! to be a Global 100 company. He and his team put together a strategic and operational plan to achieve that goal. In 2011, It Works! had revenue of $45 million; in 2012, revenue jumped to $200 million, placing the company in the 56th position in the 2012 ranking.
“We started from the bottom, and now we’re here,” said Pentecost. “It just shows any company in here that if you really focus and persevere you can do this—you can be a 10-year overnight success.”
Nerium International won the Bravo Growth Award, which is presented to the company achieving the highest percentage of growth over the prior year.
Last year’s winner, ViSalus, won the award for its 600 percent growth, going from $34 million in 2010 to $231 million in 2011. Nerium achieved an astounding 3,900 percent growth, going from $2.5 million in revenue in 2011 to $100 million in 2012. The company, which was founded in the fall of 2011 with only one product in the anti-aging category, placed 86th in the ranking.
Nerium’s founders—CEO Jeff Olson, President Dennis Windsor, Corporate Liaison Renee Olson and Vice President of Marketing and Culture Amber Olson—accepted the award.
“It’s been a fun year,” said Jeff Olson. “We’ve really enjoyed the growth and look forward to a great year coming up.”
The third award in this category, presented later in the evening, was the Bravo Leadership Award, which was given to Alessandro Carlucci, CEO of São Paolo, Brazil-based Natura and Chairman of the World Federation of Direct Selling Associations.
The Leadership Award is presented to an individual who personifies leadership, guiding those around him toward greater good, progress and achievement all while earning the respect and admiration of those he leads. Previous winners in this category include John Addison of Primerica (2009); Greg Provenzano, Robert Stevanovski, Mike Cupisz and Tony Cupisz of ACN (2010); and Doug DeVos of Amway (2011).
Carlucci was recognized for embodying those traits. He joined his company in 1989 as a member of the sales and marketing team. In 2005, he was named CEO, becoming the company’s first top executive from outside its controlling stockholders. Under his guidance, Natura has grown to be the largest cosmetics company in Brazil.
In October 2011, Carlucci assumed the Chair of the World Federation of Direct Selling Associations, where he now helps guide the industry on a global scale. He believes his responsibility as a leader is to “show to the world our transformation and entrepreneurship capacity,” which will increase business opportunities and the positive impact direct selling has on the lives of millions of people.
“I am very deeply honored to receive this,” said Carlucci upon receiving the Leadership Award. “I am happy to be here because every time I can be together with friends in direct selling, it makes me feel better about the decision I made many years ago to join this industry. It’s a moment to see good friends and the opportunity to make new good friends. This is one of the most important characteristics of our industry—we make friends for life. It is an amazing industry.”
|Brian Connolly, Chairman of the Board of Miche Bag, served as master of ceremonies.||Over 300 industry executives attended the Global 100 Celebration.||Alessandro Carlucci, CEO of Natura and Chairman of the WFDSA, gave the keynote address.|
Carlucci was also the keynote speaker for the evening. He spoke of the interconnectedness of direct selling companies, distributors and consumers, and the impact the industry has on the world at large.
“Relationships are the foundation of our company and our business. In the end, relationships move the world; relationships move the business; relationships move people,” he said.
“We see people trying to really produce positive impact,” Carlucci continued. “At the same time we see a huge change in consumer behavior. And when we see all these things together, and we look for the fundamentals of our industry, there is a call for us—a call for our industry because we transform people’s lives, we affect their social aspects, we can do good things for the environment and, economically, we can offer opportunities for people. There is nothing more contemporary than direct selling, and the world is calling for us to help people, to be better leaders, to do the right thing, to transform lives, to generate economic health.”
As Chairman of the World Federation, Carlucci re-emphasized the relevance and importance for direct selling companies to be examples of trust, transparency and good business—“Business that can really change the quality of life on this planet,” he said.
The DSN Global 100
The most anticipated segment of the evening was the announcement of the DSN Global 100.
Before announcing the list in reverse order, Emcee Connolly shared some statistics about the 2012 ranking. A total of 16 countries were represented—including Brazil, Canada, Germany, India, Luxembourg, Peru, Russia, South Korea and Switzerland—with 24 newcomers to the list, hailing from Japan, Malaysia, France, the United Kingdom, the United States, China and Cyprus.
By region, there were 57 companies from North America, four from South America, 14 from Europe/Africa and 24 from the Asia-Pacific arena.
In all, the DSN Global 100 companies achieved over $72 billion in net sales in 2012, up from $63 billion one year ago. The Top 10 companies, which collectively represented 625 years of direct selling business across the globe, achieved $44 billion in revenue.
Representatives from nine of the Top 10 companies were present at the event.
Mona Ameli, General Manager of Belcorp USA, accepted for Peru-based Belcorp Ltd., which placed 10th. “This is a very special year for us as we celebrate our 45th anniversary. This acknowledgment reflects the extraordinary efforts of our 9,000 employees. We want to dedicate this distinction to our amazing independent beauty advisors because without their passion, their commitment and their hard work on a daily basis, from the outskirts of the Amazon to the streets of San Francisco, this would never have been possible.”
Oriflame Senior Vice President Michael Cervell accepted for the Luxembourg-based company, which placed 9th. “On behalf of Oriflame, we are very proud to be in this [ranking], but we are not satisfied. We want to be higher than we are now.”
Greg Darlington, Vice President of Nu Skin, accepted for his company, which placed 8th. “On behalf of our 900,000 distributors and our customers around the world, we thank you for the opportunity to receive this award.”
No. 6 Mary Kay was represented by Senior Vice President Nathan Moore. “Mary Kay always said that if you aim for the moon and you miss, you land amongst the stars. It’s an honor to be among all of you stars tonight.”
Keynote speaker and Bravo Leadership Award winner Carlucci accepted for No. 5, Natura. “On behalf of our 1.5 million consultants around Latin America, we would like to say ‘thank you.’ ”
Hans ter Pelle, Chief Financial Officer of JAFRA Cosmetics, accepted for Germany-based Vorwerk, the No. 4 direct seller. “On behalf of the owner family of Vorwerk and the managing partners, I will gladly take this award and pass it on to them. We aim for higher goals, and we aim for touching many more people on this globe, so let’s put in some healthy competition and see where we end up next year.”
“With leadership comes responsibility, and as such, we will continue to support the industry and its interests going forward.”
—Sandy Spielmaker, Vice President of Sales, Amway North America
The No. 3 direct seller in the world, Herbalife, was represented by Brian McKinley, Senior Director of Corporate Alliances. “Don’t believe everything you read,” McKinley said in reference to recent scrutiny of the company. “Our company is fantastic, our industry is amazing and the future is very bright.”
Angelo Rossi, Avon Group Vice President, accepted for the No. 2 direct seller. “We are honored to be here and accept on behalf of the over 30,000 associates and 6 million independent contractors around the world. I would also say we are honored and humbled tonight to recognize the new top direct selling company in the world.”
That new No. 1 direct seller was Ada, Michigan-based Amway, which achieved $11.3 billion in revenue for 2012. Sandy Spielmaker, Vice President of Sales for Amway North America, accepted for the company. “It is really an honor to be a leader in an industry of such great, reputable companies. With leadership comes responsibility, and as such, we will continue to support the industry and its interests going forward,” said Spielmaker. “We also know that, as an industry, we are being attacked by outsiders, but we are not in this alone. We are in it together and we will continue to support each and every one of you and this entire industry.”