brand-logo
Subscribe

Brand Purpose to Drive Bigger Profits, Says New IBM Study

by Leave a Comment

IBM released a new study on global consumer trends that reveals the importance of brand purpose surpasses cost and convenience for today’s shoppers.

The research, developed in partnership with the National Retail Federation (NRF), polled nearly 19,000 consumers from 28 countries, across all demographics and generations, from Gen Z to Baby Boomers (ages 18–73), to understand how individual purchasing decisions are evolving and help today’s consumer-facing companies navigate trade and commerce complexities.

One-third of all consumers today will stop buying their preferred products if they lose trust in the brand, and one-third of consumers have already stopped purchasing their longtime, favorite brands in 2019. As such, consumers are prioritizing those that are sustainable, transparent and aligned with their core values when making these decisions. They’re willing to pay more, and even change their buying habits, for brands that get it right.

At the same time, buying behaviors have changed drastically. Consumers shop whenever and wherever the mood strikes them – usually while doing something else. Whereas impulse buying was once the norm, impulse shopping is the current norm, 7 in 10 consumers now shop in “micro-moments”—or shop simultaneously while conducting their daily tasks.

With a proliferation of brands and products at shoppers’ disposal anywhere at any time, corporate values now outweigh product costs and convenience. Consumers of all ages and incomes pay much higher premiums for products aligned with their personal beliefs. On average:

  • 70 percent of purpose-driven shoppers pay an added premium of 35 percent more per upfront cost for sustainable purchases, such as recycled or eco-friendly goods.
  • 57 percent of them are even willing to change their purchasing habits to help reduce negative environmental impact.
  • 79 percent of all consumers today state it is important for brands to provide guaranteed authenticity, like certifications, when they’re purchasing goods. Within this group, 71 percent are willing to pay an added premium—37 percent more—for companies offering full transparency and traceability.

“Transparency constitutes proof that an organization and its offerings are what the company claims to be—a way to earn consumers trust. Brands can leverage data and integrate blockchain technologies as brand differentiators that effectively provide transparency and traceability, which will also boost profits as the study shows that shoppers willingly pay more if a retailer can demonstrate provenance,” said Luq Niazi, global managing director, IBM Consumer Industries.

The modern-day marketplace has created a new generation of customers that come with higher demands and bigger challenges that retailers must face in 2020, and the findings reveal major shifts in consumer buying behaviors that require a fundamental change in how retailers and consumer packaged goods brands build brand affinity.

With cost no longer the deciding force for consumers, IBM recommends the following for retailers to regain competitive market share in new ways:

Earn consumers’ confidence through transparency and traceability: With “micro-moments” on the rise, companies must go beyond simply offering convenient or quicker services to gain customers’ trust—consumer brands now need to differentiate themselves by offering convenient, quicker access to detailed information previously unnecessary, such as how the products are manufactured, quality of ingredients, if it is sustainable or ethically sourced, and under what conditions.

Measure sustainability through economic impact: Reducing environmental impact now goes beyond recyclable packaging or reducing carbon footprints. Purpose-driven brands must also help build a sustainable, circular economy for future generations. In order to preserve resources and eliminate waste in today’s commerce-driven landscape, sustainability must be integrated and measured end-to-end and across the entire supply chain for CPG manufacturers.

Deliver value through more flexibility, not more products: As digital interactions continue to influence the way consumers shop, retailers need to innovate in store, to give a consistent brand experience across all channels. The challenge however for many retailers is the ability to rapidly deploy and integrate new capabilities with their existing store technology environment to allow them to continuously deliver on consumer expectations.

“Shoppers today show an increased willingness to pay premiums for products that align with their values,” said Mark Mathews, vice president of Research Development & Industry Analysis at NRF. “The study’s findings show that today’s retailers need to be proactive in evaluating and understanding what drives current and future core buyers while still boosting margins for their business.”

The full study findings can be found here.

Brand Purpose to Drive Bigger Profits, Says New IBM Study

by Leave a Comment

IBM released a new study on global consumer trends that reveals the importance of brand purpose surpasses cost and convenience for today’s shoppers.

The research, developed in partnership with the National Retail Federation (NRF), polled nearly 19,000 consumers from 28 countries, across all demographics and generations, from Gen Z to Baby Boomers (ages 18–73), to understand how individual purchasing decisions are evolving and help today’s consumer-facing companies navigate trade and commerce complexities.

One-third of all consumers today will stop buying their preferred products if they lose trust in the brand, and one-third of consumers have already stopped purchasing their longtime, favorite brands in 2019. As such, consumers are prioritizing those that are sustainable, transparent and aligned with their core values when making these decisions. They’re willing to pay more, and even change their buying habits, for brands that get it right.

At the same time, buying behaviors have changed drastically. Consumers shop whenever and wherever the mood strikes them – usually while doing something else. Whereas impulse buying was once the norm, impulse shopping is the current norm, 7 in 10 consumers now shop in “micro-moments”—or shop simultaneously while conducting their daily tasks.

With a proliferation of brands and products at shoppers’ disposal anywhere at any time, corporate values now outweigh product costs and convenience. Consumers of all ages and incomes pay much higher premiums for products aligned with their personal beliefs. On average:

  • 70 percent of purpose-driven shoppers pay an added premium of 35 percent more per upfront cost for sustainable purchases, such as recycled or eco-friendly goods.
  • 57 percent of them are even willing to change their purchasing habits to help reduce negative environmental impact.
  • 79 percent of all consumers today state it is important for brands to provide guaranteed authenticity, like certifications, when they’re purchasing goods. Within this group, 71 percent are willing to pay an added premium—37 percent more—for companies offering full transparency and traceability.

“Transparency constitutes proof that an organization and its offerings are what the company claims to be—a way to earn consumers trust. Brands can leverage data and integrate blockchain technologies as brand differentiators that effectively provide transparency and traceability, which will also boost profits as the study shows that shoppers willingly pay more if a retailer can demonstrate provenance,” said Luq Niazi, global managing director, IBM Consumer Industries.

The modern-day marketplace has created a new generation of customers that come with higher demands and bigger challenges that retailers must face in 2020, and the findings reveal major shifts in consumer buying behaviors that require a fundamental change in how retailers and consumer packaged goods brands build brand affinity.

With cost no longer the deciding force for consumers, IBM recommends the following for retailers to regain competitive market share in new ways:

Earn consumers’ confidence through transparency and traceability: With “micro-moments” on the rise, companies must go beyond simply offering convenient or quicker services to gain customers’ trust—consumer brands now need to differentiate themselves by offering convenient, quicker access to detailed information previously unnecessary, such as how the products are manufactured, quality of ingredients, if it is sustainable or ethically sourced, and under what conditions.

Measure sustainability through economic impact: Reducing environmental impact now goes beyond recyclable packaging or reducing carbon footprints. Purpose-driven brands must also help build a sustainable, circular economy for future generations. In order to preserve resources and eliminate waste in today’s commerce-driven landscape, sustainability must be integrated and measured end-to-end and across the entire supply chain for CPG manufacturers.

Deliver value through more flexibility, not more products: As digital interactions continue to influence the way consumers shop, retailers need to innovate in store, to give a consistent brand experience across all channels. The challenge however for many retailers is the ability to rapidly deploy and integrate new capabilities with their existing store technology environment to allow them to continuously deliver on consumer expectations.

“Shoppers today show an increased willingness to pay premiums for products that align with their values,” said Mark Mathews, vice president of Research Development & Industry Analysis at NRF. “The study’s findings show that today’s retailers need to be proactive in evaluating and understanding what drives current and future core buyers while still boosting margins for their business.”

The full study findings can be found here.

LifeVantage Reports Preliminary Q2 Revenue Up 5%; Introduces Free Shipping in 2020

by Leave a Comment

LifeVantage Corporation (Nasdaq:LFVN) today announced preliminary revenue for the fiscal 2020 second quarter and six-month period ended Dec. 31, 2019.

Preliminary revenue for the second quarter of fiscal 2020 was approximately $61 million, or a 5 percent increase compared to $58.2 million in the prior year period. Preliminary revenue for the first six months of fiscal 2020 was approximately $117 million, or a 3 percent increase compared to $113.8 million in the prior year period.

“This is a significant watermark for us as a company, particularly on the heels of achieving our highest annual revenue in company history during fiscal 2019,” said LifeVantage President and Chief Executive Officer Darren Jensen, who will ring the Nasdaq closing bell today in conjunction with Nasdaq “Wellness Week.” “Our continued sales growth reflects, in part, the positive reception to the launch of our Protandim® NAD Synergizer™ and Protandim® Tri-Synergizer™. We are excited about how we’re positioned as a leader in delivering innovative and effective nutrigenomics products as we enter the new decade.”

LifeVantage’s introduction of free shipping, which goes into effect in select markets beginning Jan. 13, 2020, will provide incremental value to customers and further improve the consumer experience heading into the new year. All subscription orders and any spot order totaling $100 or more in the U.S. will receive free shipping. Orders in Canada, Mexico and European markets over a certain amount will also receive free shipping, with purchase thresholds varying by market. Free shipping in other markets will be rolled out over the coming quarters.

LifeVantage Reports Preliminary Q2 Revenue Up 5%; Introduces Free Shipping in 2020

by Leave a Comment

LifeVantage Corporation (Nasdaq:LFVN) today announced preliminary revenue for the fiscal 2020 second quarter and six-month period ended Dec. 31, 2019.

Preliminary revenue for the second quarter of fiscal 2020 was approximately $61 million, or a 5 percent increase compared to $58.2 million in the prior year period. Preliminary revenue for the first six months of fiscal 2020 was approximately $117 million, or a 3 percent increase compared to $113.8 million in the prior year period.

“This is a significant watermark for us as a company, particularly on the heels of achieving our highest annual revenue in company history during fiscal 2019,” said LifeVantage President and Chief Executive Officer Darren Jensen, who will ring the Nasdaq closing bell today in conjunction with Nasdaq “Wellness Week.” “Our continued sales growth reflects, in part, the positive reception to the launch of our Protandim® NAD Synergizer™ and Protandim® Tri-Synergizer™. We are excited about how we’re positioned as a leader in delivering innovative and effective nutrigenomics products as we enter the new decade.”

LifeVantage’s introduction of free shipping, which goes into effect in select markets beginning Jan. 13, 2020, will provide incremental value to customers and further improve the consumer experience heading into the new year. All subscription orders and any spot order totaling $100 or more in the U.S. will receive free shipping. Orders in Canada, Mexico and European markets over a certain amount will also receive free shipping, with purchase thresholds varying by market. Free shipping in other markets will be rolled out over the coming quarters.

Financial Analysis

by Leave a Comment

WeWork Debacle Changes the Gig Economy Game; Public Direct Sellers Continue to Slow.

 

WEWORK IMPLOSION SIGNALS THE END TO BLANK CHECK FINANCING FOR GIG ECONOMY

For the past several years, growth in the U.S. Direct Selling market has appeared to plateau after decades of posting mostly consistent, mid-single-digit kind of growth rates, even during mildly recessionary times. We think it is more than coincidence that this is also the period where some of the bigger Gig Economy concepts had really gained traction as well as critical mass, offering the workforce micro-entrepreneurial opportunities with workplace flexibility. This has always been the hallmark appeal of direct selling.

Many of these Gig concepts, particularly the ones that support their own independent contractor infrastructures, have been bleeding cash in order to achieve very rapid growth rates. However, they also had a seemingly bottomless pit of private equity financing to burn through. This gave them a huge advantage over the more traditional direct sellers, who tend to finance growth through internal cash generation.

But a funny thing happened to the Gig explosion this year: the public equity markets started yelling, “stop the madness!” to the private equity markets. It started with the rideshare unicorns Lyft and Uber seeing their recent IPOs trade underwater almost immediately, and they both remain so now with each carrying a market value about 1/3 less than at their respective IPO prices as of early December. Press reports indicate that Uber carried private market valuations as high as $72 billion pre-IPO. Today, its equity market capitalization is $49 billion. Lyft currently carries an equity market capitalization of $14 billion, below its last private market capital raise of $15 billion in the summer of 2018. But this was just the shot across the bow.

The game-changer was the dramatic rise and fall of the WeWork IPO in the Q3 of this year. WeWork is not technically a Gig concept, but it is a by-product of the Gig revolution in that it offers shared workspaces, which accommodate the emerging independent workforce.

At its last private equity capital raise in January 2019, a $2 billion investment from Japanese conglomerate Softbank, the company was valued at $47 billion. Press reports indicate that bulge bracket investment banks dangled valuations for its IPO in the $63 to $96 billion range. When the IPO prospectus was finally filed in August, investors and the media were taken aback by the shoddy corporate governance and the trail of red ink with no end in sight. With the immense pushback, by mid-September, the bankers were considering an IPO with a valuation of $10-$12 billion, about one-quarter of the private market valuation just eight months earlier. By late September the IPO was postponed and the CEO/founder was forced out due to erratic behavior in a sweetheart deal that further enraged investors. Without the IPO proceeds, WeWork was now cash-strapped and had to be bailed out by Softbank at a valuation reported to be $7-8 billion in October. Finally, the company laid off 20 percent of its global workforce in November.

Since then, food delivery service Postmates has laid off dozens of workers, closed its Mexico City office, pulled its planned IPO, and is reportedly looking for a buyer. Homesharer Airbnb and food deliverer Doordash have decided to forgo a traditional IPO and pursue a direct listing, which will create a public market for the stock but will not raise additional capital for the companies.

Therefore, while Lyft and Uber continue to be cash-rich from their recent respective IPOs, it appears that with the financing spigots turned off there is now a finish line with regard to being self-funding as they burn through their existing cash balances. It appears that with the recent souring on money-losing Gig concepts, coupled with the Theranos fraud earlier in the decade, the days of throwing unlimited cash at anything coming out of
Silicon Valley appear to be behind us, at least for now.

 

LYFT REGULATORS ARE ALSO CATCHING UP WITH THE GIG ECONOMY

Along with a tighter wallet from Wall Street, regulators and voters are also reining in the freewheeling Gig players.

  • Recently passed AB5 in California threatens to force Uber and Lyft to classify its drivers as employees rather than independent contractors.  Headlines read, “California’s AB5 will kill the Gig economy.”
  • Spanish courts have also ruled that Deliveroo riders are employees, not self-employed.
  •  Voters in Jersey City, NJ, voted to impose severe restrictions on Airbnb’s ability to operate there. In early December, Airbnb had to pull thousands of listings in Boston as a result of a new regulation requiring it to apply to register all of its listings there.
  •  NYC-based ride app Juno recently went bankrupt and blamed the wage laws there.
  •  Doordash is being sued by the D.C. attorney general for misleading customers and pocketing driver tips.
  •  Our guess is that after a decade of explosive growth, 2019 may mark an important inflection point in the Gig Economy’s life cycle, with growth going forward becoming a little more restrained.

 

GROWTH CONTINUES TO SLOW; STOCKS CONTINUE TO LAG

While the overall market continues to power upward this year driven by sharp multiple expansions in this declining interest rate environment, direct selling stocks are experiencing the double whammy of having lower multiples applied to reduced earnings, as growth has slowed markedly for the group this year.

Our index of Direct Selling stocks was down (22 percent) so far this year through the end of November versus gains of +25 percent for the market as measured by the S&P 500. Since mid-year, Direct Sellers have declined (19 percent) vs gains of +7 percent for the market.

The drivers are easy to delineate:

  •  For the market, prospective 12-months earnings forecasts have been virtually unchanged all year while the prospective P/E ratio has gone from 14.4x at the beginning of the year to 16.8x at mid-year to 17.9x as of the end of November. Declining global interest rates have pushed investors into riskier assets.
  • For the Direct Sellers, prospective earnings didn’t start to decline until mid-year, but as is usually the case, investors anticipated trouble beforehand and multiples began to contract as early as the 2018 Q4. Therefore, while prospective earnings actually increased by +4 percent in the 2019 first half, the prospective P/E ratio  went from 15.9x at the beginning of the year to 12.3x at mid-year. Since mid-year, prospective earnings are down (17 percent) and the prospective P/E ratio dropped further to 11.9x.

Stepping back, our index is now down (35 percent) since its recent September 2018 peak, and is discounting earnings levels that go back to late 2017; all the earnings growth the Direct Sellers benefited from in 2018 has now been given back.

As the graph above illustrates, organic sales gains decelerated further in the Q3 for the 4th straight quarter since peaking in the 2018 Q3. The low-single digits average growth rates for the group in the Q3 is the slowest since the 2017 Q2. Each company showed decelerating sequential growth trends with the exception of HLF, where global growth ticked up a point to +2 percent in the Q3 from +1 percent in the Q2, and USNA, where sales declines lessened by a point to (10 percent) in the Q3 from (11 percent) in the Q2.

Optavia (MED) once again led the pack with a strong +40 percent organic growth increase in the Q3, but that is expected to slow markedly, at least in the near term, as the company has been forced to deal with unexpected disruptions to its business as a result of credit card fraud, delayed ERP system implementation and supply chain issues arising from its recent rapid growth rates.

Double-digit organic sales declines at NUS and USNA continue to be driven primarily due to the recent adverse media and regulatory environment in China, although we note that in both cases there has been system-wide softness, so we do not believe China alone is impeding growth at either company.

The double-digit declines at TUP do not appear to be driven by any single factor, and with no solutions imminently visible to stem the declines, the board there decided a change in leadership was required to take the company in a new direction. In early December, the interim CEO outlined a
vision of leveraging Tupperware’s iconic global brand name in channels outside of direct selling. We wish the company well but are pressed to think of a case where a multi-channel approach provided any benefit to the direct selling sales force. In fact, it’s usually the opposite.

DOUGLAS M. LANE, CFA, IS A SECURITIES ANALYST WITH MORE THAN 20 YEARS OF EXPERIENCE COVERING COMPANIES THAT EMPLOY A DIRECT TO CONSUMER BUSINESS MODEL. HE LEADS A BOUTIQUE EQUITY RESEARCH FIRM, LANE RESEARCH, FOCUSING ON THOSE COMPANIES. PLEASE VISIT WWW.LANERES.COM. HE CAN BE REACHED AT DOUG@LANERES.COM.

Financial Analysis

by Leave a Comment

WeWork Debacle Changes the Gig Economy Game; Public Direct Sellers Continue to Slow.

 

WEWORK IMPLOSION SIGNALS THE END TO BLANK CHECK FINANCING FOR GIG ECONOMY

For the past several years, growth in the U.S. Direct Selling market has appeared to plateau after decades of posting mostly consistent, mid-single-digit kind of growth rates, even during mildly recessionary times. We think it is more than coincidence that this is also the period where some of the bigger Gig Economy concepts had really gained traction as well as critical mass, offering the workforce micro-entrepreneurial opportunities with workplace flexibility. This has always been the hallmark appeal of direct selling.

Many of these Gig concepts, particularly the ones that support their own independent contractor infrastructures, have been bleeding cash in order to achieve very rapid growth rates. However, they also had a seemingly bottomless pit of private equity financing to burn through. This gave them a huge advantage over the more traditional direct sellers, who tend to finance growth through internal cash generation.

But a funny thing happened to the Gig explosion this year: the public equity markets started yelling, “stop the madness!” to the private equity markets. It started with the rideshare unicorns Lyft and Uber seeing their recent IPOs trade underwater almost immediately, and they both remain so now with each carrying a market value about 1/3 less than at their respective IPO prices as of early December. Press reports indicate that Uber carried private market valuations as high as $72 billion pre-IPO. Today, its equity market capitalization is $49 billion. Lyft currently carries an equity market capitalization of $14 billion, below its last private market capital raise of $15 billion in the summer of 2018. But this was just the shot across the bow.

The game-changer was the dramatic rise and fall of the WeWork IPO in the Q3 of this year. WeWork is not technically a Gig concept, but it is a by-product of the Gig revolution in that it offers shared workspaces, which accommodate the emerging independent workforce.

At its last private equity capital raise in January 2019, a $2 billion investment from Japanese conglomerate Softbank, the company was valued at $47 billion. Press reports indicate that bulge bracket investment banks dangled valuations for its IPO in the $63 to $96 billion range. When the IPO prospectus was finally filed in August, investors and the media were taken aback by the shoddy corporate governance and the trail of red ink with no end in sight. With the immense pushback, by mid-September, the bankers were considering an IPO with a valuation of $10-$12 billion, about one-quarter of the private market valuation just eight months earlier. By late September the IPO was postponed and the CEO/founder was forced out due to erratic behavior in a sweetheart deal that further enraged investors. Without the IPO proceeds, WeWork was now cash-strapped and had to be bailed out by Softbank at a valuation reported to be $7-8 billion in October. Finally, the company laid off 20 percent of its global workforce in November.

Since then, food delivery service Postmates has laid off dozens of workers, closed its Mexico City office, pulled its planned IPO, and is reportedly looking for a buyer. Homesharer Airbnb and food deliverer Doordash have decided to forgo a traditional IPO and pursue a direct listing, which will create a public market for the stock but will not raise additional capital for the companies.

Therefore, while Lyft and Uber continue to be cash-rich from their recent respective IPOs, it appears that with the financing spigots turned off there is now a finish line with regard to being self-funding as they burn through their existing cash balances. It appears that with the recent souring on money-losing Gig concepts, coupled with the Theranos fraud earlier in the decade, the days of throwing unlimited cash at anything coming out of
Silicon Valley appear to be behind us, at least for now.

 

LYFT REGULATORS ARE ALSO CATCHING UP WITH THE GIG ECONOMY

Along with a tighter wallet from Wall Street, regulators and voters are also reining in the freewheeling Gig players.

  • Recently passed AB5 in California threatens to force Uber and Lyft to classify its drivers as employees rather than independent contractors.  Headlines read, “California’s AB5 will kill the Gig economy.”
  • Spanish courts have also ruled that Deliveroo riders are employees, not self-employed.
  •  Voters in Jersey City, NJ, voted to impose severe restrictions on Airbnb’s ability to operate there. In early December, Airbnb had to pull thousands of listings in Boston as a result of a new regulation requiring it to apply to register all of its listings there.
  •  NYC-based ride app Juno recently went bankrupt and blamed the wage laws there.
  •  Doordash is being sued by the D.C. attorney general for misleading customers and pocketing driver tips.
  •  Our guess is that after a decade of explosive growth, 2019 may mark an important inflection point in the Gig Economy’s life cycle, with growth going forward becoming a little more restrained.

 

GROWTH CONTINUES TO SLOW; STOCKS CONTINUE TO LAG

While the overall market continues to power upward this year driven by sharp multiple expansions in this declining interest rate environment, direct selling stocks are experiencing the double whammy of having lower multiples applied to reduced earnings, as growth has slowed markedly for the group this year.

Our index of Direct Selling stocks was down (22 percent) so far this year through the end of November versus gains of +25 percent for the market as measured by the S&P 500. Since mid-year, Direct Sellers have declined (19 percent) vs gains of +7 percent for the market.

The drivers are easy to delineate:

  •  For the market, prospective 12-months earnings forecasts have been virtually unchanged all year while the prospective P/E ratio has gone from 14.4x at the beginning of the year to 16.8x at mid-year to 17.9x as of the end of November. Declining global interest rates have pushed investors into riskier assets.
  • For the Direct Sellers, prospective earnings didn’t start to decline until mid-year, but as is usually the case, investors anticipated trouble beforehand and multiples began to contract as early as the 2018 Q4. Therefore, while prospective earnings actually increased by +4 percent in the 2019 first half, the prospective P/E ratio  went from 15.9x at the beginning of the year to 12.3x at mid-year. Since mid-year, prospective earnings are down (17 percent) and the prospective P/E ratio dropped further to 11.9x.

Stepping back, our index is now down (35 percent) since its recent September 2018 peak, and is discounting earnings levels that go back to late 2017; all the earnings growth the Direct Sellers benefited from in 2018 has now been given back.

As the graph above illustrates, organic sales gains decelerated further in the Q3 for the 4th straight quarter since peaking in the 2018 Q3. The low-single digits average growth rates for the group in the Q3 is the slowest since the 2017 Q2. Each company showed decelerating sequential growth trends with the exception of HLF, where global growth ticked up a point to +2 percent in the Q3 from +1 percent in the Q2, and USNA, where sales declines lessened by a point to (10 percent) in the Q3 from (11 percent) in the Q2.

Optavia (MED) once again led the pack with a strong +40 percent organic growth increase in the Q3, but that is expected to slow markedly, at least in the near term, as the company has been forced to deal with unexpected disruptions to its business as a result of credit card fraud, delayed ERP system implementation and supply chain issues arising from its recent rapid growth rates.

Double-digit organic sales declines at NUS and USNA continue to be driven primarily due to the recent adverse media and regulatory environment in China, although we note that in both cases there has been system-wide softness, so we do not believe China alone is impeding growth at either company.

The double-digit declines at TUP do not appear to be driven by any single factor, and with no solutions imminently visible to stem the declines, the board there decided a change in leadership was required to take the company in a new direction. In early December, the interim CEO outlined a
vision of leveraging Tupperware’s iconic global brand name in channels outside of direct selling. We wish the company well but are pressed to think of a case where a multi-channel approach provided any benefit to the direct selling sales force. In fact, it’s usually the opposite.

DOUGLAS M. LANE, CFA, IS A SECURITIES ANALYST WITH MORE THAN 20 YEARS OF EXPERIENCE COVERING COMPANIES THAT EMPLOY A DIRECT TO CONSUMER BUSINESS MODEL. HE LEADS A BOUTIQUE EQUITY RESEARCH FIRM, LANE RESEARCH, FOCUSING ON THOSE COMPANIES. PLEASE VISIT WWW.LANERES.COM. HE CAN BE REACHED AT DOUG@LANERES.COM.

Coway Donates Air Purifiers to San Francisco School

by Leave a Comment

Korean direct seller Coway recently announced a charitable donation of air purifier units to Commodore Sloat Elementary School in San Francisco.

“As part of our mission and continued focus on helping people live healthier lives, providing these air purifiers allows us to further cement this effort,” said Kevin Shim, director. “We believe that children should have the best access to healthy environments from an early age. Knowing that children are among those individuals most susceptible to health issues, we felt it was of the utmost importance to make a contribution to a school like Commodore Sloat Elementary, which was suffering as a result of the wildfires.”

According to the company, wildfires release large amounts of carbon monoxide and fine particles into the atmosphere, diminishing the air quality and increasing the risk of adverse effects to the lungs and heart. Children, the elderly and pregnant women tend to be most susceptible to the effects of wildfires.

“As a parent, it’s important for me to know that my daughter has a clean and healthy classroom environment, especially during wildfire season here in California,” said Alex Davidson, parent and co-president of the Parent Club Organization (PCO) at Commodore Sloat. “The Coway air filters will go a long way to ensure kids at Sloat have clean air to breathe throughout the year.”

Coway Donates Air Purifiers to San Francisco School

by Leave a Comment

Korean direct seller Coway recently announced a charitable donation of air purifier units to Commodore Sloat Elementary School in San Francisco.

“As part of our mission and continued focus on helping people live healthier lives, providing these air purifiers allows us to further cement this effort,” said Kevin Shim, director. “We believe that children should have the best access to healthy environments from an early age. Knowing that children are among those individuals most susceptible to health issues, we felt it was of the utmost importance to make a contribution to a school like Commodore Sloat Elementary, which was suffering as a result of the wildfires.”

According to the company, wildfires release large amounts of carbon monoxide and fine particles into the atmosphere, diminishing the air quality and increasing the risk of adverse effects to the lungs and heart. Children, the elderly and pregnant women tend to be most susceptible to the effects of wildfires.

“As a parent, it’s important for me to know that my daughter has a clean and healthy classroom environment, especially during wildfire season here in California,” said Alex Davidson, parent and co-president of the Parent Club Organization (PCO) at Commodore Sloat. “The Coway air filters will go a long way to ensure kids at Sloat have clean air to breathe throughout the year.”

Dimitri Haloulos Appointed Rodan + Fields Chief Growth Officer

by Leave a Comment

Rodan & Fields recently announced the appointment of Dimitri Haloulos as chief growth officer (CGO).

According to the company, the CGO role is part of Rodan + Fields’ efforts to innovate, focus on global development and better position the brand for future success.

As CGO, Haloulos will focus on building and expanding the Rodan + Fields brand and supporting the company’s goal of bringing dermatology-inspired skincare to more people. Reporting to Diane Dietz, president and chief executive officer, Haloulos will lead a team focused on growth and opportunity including Global Innovation, Brand and Digital Marketing, Corporate Strategy + Insights and Global Strategy functions.

“We welcome Dimitri to Rodan + Fields,” said Dietz. “Dimitri has a strong track record in positioning and scaling innovative global brands for growth in highly competitive and complex environments. We believe there is significant opportunity to bring our dermatology-inspired skincare to more people and look forward to continuing our leadership and innovation in the skincare industry.”

Haloulos brings more than 15 years of experience in the consumer-packaged goods and retail space, creating innovative brands and transforming major consumer brands. He has extensive omni-channel and global experience, as well as expertise in the health and beauty industry. Most recently, he served as CEO of BevMo, and held prior leadership positions at Albertsons and Procter & Gamble.

“Rodan + Fields’ innovative products and powerful brand advocates have resulted in unprecedented growth in just over 10 years,” said Haloulos. “I look forward to building on the brand’s unique heritage and giving more people access to its life-changing products and greater business opportunities through our Consultant community.”

Dimitri Haloulos Appointed Rodan + Fields Chief Growth Officer

by Leave a Comment

Rodan & Fields recently announced the appointment of Dimitri Haloulos as chief growth officer (CGO).

According to the company, the CGO role is part of Rodan + Fields’ efforts to innovate, focus on global development and better position the brand for future success.

As CGO, Haloulos will focus on building and expanding the Rodan + Fields brand and supporting the company’s goal of bringing dermatology-inspired skincare to more people. Reporting to Diane Dietz, president and chief executive officer, Haloulos will lead a team focused on growth and opportunity including Global Innovation, Brand and Digital Marketing, Corporate Strategy + Insights and Global Strategy functions.

“We welcome Dimitri to Rodan + Fields,” said Dietz. “Dimitri has a strong track record in positioning and scaling innovative global brands for growth in highly competitive and complex environments. We believe there is significant opportunity to bring our dermatology-inspired skincare to more people and look forward to continuing our leadership and innovation in the skincare industry.”

Haloulos brings more than 15 years of experience in the consumer-packaged goods and retail space, creating innovative brands and transforming major consumer brands. He has extensive omni-channel and global experience, as well as expertise in the health and beauty industry. Most recently, he served as CEO of BevMo, and held prior leadership positions at Albertsons and Procter & Gamble.

“Rodan + Fields’ innovative products and powerful brand advocates have resulted in unprecedented growth in just over 10 years,” said Haloulos. “I look forward to building on the brand’s unique heritage and giving more people access to its life-changing products and greater business opportunities through our Consultant community.”

Yongjae Park Named Isagenix General Manager of South Korea

by Leave a Comment

Isagenix International recently announced that Yongjae (Patrick) Park has been appointed general manager of South Korea.

According to the company, Park played key roles in the expansion into and operation of 10 markets—including Asia, Europe and Latin America—for a multibillion-dollar global direct selling company that he joined in 1994. He served as a director of that company in Korea through 2000 and most recently served as regional vice president for Asia, leading the company’s overall operations in Japan and Taiwan.

“As Korea is a pivotal market for Isagenix and the expansion into Asia, our efforts to appoint the best person for the position were made with great deliberation,” said Sharron Walsh, Isagenix president of Global Sales and Marketing. “With more than 22 years of experience, Patrick has demonstrated excellent leadership with great success in sales growth. We strongly believe with his expertise and experience at the helm of Isagenix Korea, he will help us achieve our goals.”

“It is an honor to be part of Isagenix,” said Park. “I will exert my full efforts to deliver on the company’s expectations. I look forward to developing new growth opportunities in Korea to help Isagenix Korea leap to the top of our industry in the future.”

 

Yongjae Park Named Isagenix General Manager of South Korea

by Leave a Comment

Isagenix International recently announced that Yongjae (Patrick) Park has been appointed general manager of South Korea.

According to the company, Park played key roles in the expansion into and operation of 10 markets—including Asia, Europe and Latin America—for a multibillion-dollar global direct selling company that he joined in 1994. He served as a director of that company in Korea through 2000 and most recently served as regional vice president for Asia, leading the company’s overall operations in Japan and Taiwan.

“As Korea is a pivotal market for Isagenix and the expansion into Asia, our efforts to appoint the best person for the position were made with great deliberation,” said Sharron Walsh, Isagenix president of Global Sales and Marketing. “With more than 22 years of experience, Patrick has demonstrated excellent leadership with great success in sales growth. We strongly believe with his expertise and experience at the helm of Isagenix Korea, he will help us achieve our goals.”

“It is an honor to be part of Isagenix,” said Park. “I will exert my full efforts to deliver on the company’s expectations. I look forward to developing new growth opportunities in Korea to help Isagenix Korea leap to the top of our industry in the future.”