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DD3, Betterware Enter into Definitive Agreement to Merge

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DD3 Acquisition Corp. (Nasdaq: DDMX), a publicly traded special purpose acquisition company and Betterware de Mexico, a leading direct-to-consumer selling company in Mexico, announced today they have entered into a definitive agreement to merge.

The combined company will operate as “Betterware” and is expected to remain publicly listed on Nasdaq. The transaction implies an initial enterprise value of approximately $367 million representing a multiple of 8.6x Betterware’s estimated 2019 EBITDA.

Founded in 1995, Betterware is focused on the home organization segment, with a wide product portfolio for daily solutions including home organization, kitchen preparation, food containers, smart furniture, technology and mobility as well as other minor categories. It has a sales force comprised of more than 400,000 distributors and associates.

“We are very excited about becoming a public company to support our continued expansion and boost our growth opportunities” said Luis Campos, chairman of Betterware. “This transaction represents the next chapter of our journey to become the leading consumer company in Mexico and Latin America focused on the home solution and organizational segment.”

“When we launched DD3, we told investors that we would look for high cash conversion companies with an asset light business model and high growth performance,” said Martín Werner, CEO of DD3. “We found the perfect fit with Betterware, a leading consumer sector company with a proven track record and tremendous growth opportunities. I look forward to working with Luis and his dynamic team to help them thrive as a public company while they continue implementing fast growing initiatives.”

Current Betterware shareholders will roll over most of their equity stakes and will remain majority owners of the combined company, with an anticipated ~80 percent stake at closing, while the remaining ownership will be held by public investors and DD3.

Campos and Andres Campos, CEO of Betterware, will continue to run the combined company. Martin Werner, CEO and chairman of DD3, and Guillermo Ortiz, board member of DD3, are expected to join the combined company’s board of directors. The transaction is expected to be completed during the fourth quarter of 2019, subject to approval from DD3’s shareholders and other customary closing conditions.

Medifast Reports Record Revenue in Q2

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Medifast, Inc. (NYSE: MED) yesterday reported record revenue million for the second quarter ended June 30, 2019.

Second quarter revenue increased 59.5 percent to $187.1 million from revenue of $117.3 million for the second quarter of 2018. OPTAVIA-branded products represented 75 percent of consumable units sold for the second quarter compared to 64 percent for the same period a year ago.

The total number of active earning OPTAVIA Coaches increased to 30,600, compared to 19,700 for the second quarter of 2018. The average revenue per active earning OPTAVIA Coach increased 7.1 percent to $5,863 compared to $5,474 for the second quarter last year.

“These record results are another demonstration of Medifast’s continued commitment to delivering sustainable growth through our mission to offer the world lifelong transformation, one healthy habit at a time,” said Dan Chard, Medifast chief executive officer. “We have a dynamic brand in OPTAVIA, and a coach community that continues to grow in size, effectiveness and geographic reach. We have developed a repeatable business rhythm that is enabling us to achieve our business objectives on a consistent basis, with ten consecutive quarters of revenue growth. Our key metrics are trending strongly in the right direction, and we are well positioned to create shareholder value for the long-term.”

To read the full Medifast Q2 2019 financial report, click here.

Herbalife Reports Q2 Net Sales of $1.2 Billion

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Herbalife Nutrition Ltd. (NYSE: HLF) recently reported net sales of $1.2 billion for the second quarter ended June 30, 2019.

Net sales decreased 3.5 percent compared to the second quarter 2018. Excluding China, net sales increased 5.4 percent compared to the second quarter 2018 with growth in eight of the company’s top ten countries.

“Our performance demonstrates the strength of our geographic diversity as this was the company’s second largest quarter in history, despite the challenges in China,” said Michael O. Johnson, chairman and CEO of Herbalife Nutrition.

Regionally, net sales were up in four of six areas:

  • Sales in Asia Pacific were $299.6 million, up 18.4% from 2018
  • Sales in North America $278.3 million, up 6% from 2018
  • Sales in EMEA were $262.9, up 1.1% from 2018
  • Sales in Mexico were $121.2 million, up 2.5% from 2018
  • Sales in China were $187.0 million, down 34.8% from 2018
  • Sales in South and Central America were $91.1 million, down 13.2% from 2018

To read the full Herbalife Q2 2019 financial report, click here.

Avon Q2 Revenue Down 12%

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Avon Products, Inc. (NYSE:AVP) announced its results for the quarter ended June 30, 2019.

Total reportable segment revenue decreased 12 percent in reported currency and 5 percent in constant dollars. Price/mix increased 9 percent. Active Representatives from reportable segments declined 10 percent, with decreases reported in all segments, and declined 3 percent compared to first-quarter 2019.

“In the second quarter, we continued to execute our Open Up strategy, with pricing and productivity gains which drove adjusted operating margin expansion and improved free cash flow,” said Jan Zijderveld, Avon CEO. “Our focus on productivity in the second quarter, including less discounting, more effective incentives, optimizing promotions and more favorable mix, led to a 5 percent improvement in Average Representative Sales with price/mix up 9 percent. We have continued to improve mix and tiering by increasing our focus on higher priced categories, like fragrance, skin care, and product bundles. Faster development and launches of on trend innovation has allowed us to leverage pricing power on new items.”

According to Zijderveld, recruiting and retention remain key areas of focus for the company. “Helping Her earn more money while we generate more profitable revenue is key to maintaining a healthier and happier Representative base and crucial to driving our future growth, Zijderveld said.

To view the full Avon Q2 financial report, click here.

Podcast Revolution

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More than half of America is on board with podcasts. But what does it mean for direct selling?

Video may be taking over the internet, but voice and audio are carving out a huge piece of the future of online marketing. With the rise of voice-activated assistant devices such as Amazon Eco and Google Home, people are becoming more accustomed to consuming audio content on multiple devices. Although podcasts are nothing new, they are skyrocketing in popularity, becoming a preferred medium in the battle for online attention.

What’s Happening:

A study by Edison Research, published in March, showed that more than 50 percent of Americans 12 years and older have listened to a podcast. That’s up from 40 percent in 2017. One-third of the U.S. population has listened to a podcast in the last month. That’s 90 million monthly listeners. Also, more than half of Americans say they use YouTube specifically for listening to music.

“This is a watershed moment for podcasting—a true milestone,” claims Tom Webster, senior vice president at Edison Research. “With over half of Americans 12-plus saying that they have ever listened to a podcast, the medium has firmly crossed into the mainstream.”

Where It’s Going:

With so much attention shifting to podcasts, big money is following. According to PwC’s Global Entertainment & Media Outlook 2019–2023 report, podcast advertising revenues are estimated to reach $1.6 billion by 2022. That would be an increase from roughly $700 million in 2018.

“I’m convinced: podcasting is one of the most valuable tools for growing a business,” says Pat Flynn, host of the Smart Passive Income podcast, which has more than 50 million downloads.

Some of the direct selling industry’s favorite speakers, trainers and thought leaders have a regular podcast with at least one fresh episode per week. This includes Tony Robins, Tim Ferriss, Eric Worre, Chalene Johnson, Gary Vaynerchuk, John Maxwell and plenty more.

“I’m convinced: podcasting is one of the most valuable tools for growing a business.” —Pat Flynn, Smart Passive Income Podcast Host

One of the main reasons for the podcast boom is the ability for people to listen while doing other tasks, such as driving, working out, working at a desk, or just doing chores around the house. When podcasts first started to catch on, listeners accessed them on PCs, then mobile devices such as iPods. Now, they can be streamed or downloaded on tablets, smartphones and virtual assistant speakers so listeners can pick up an episode on the go wherever they left off.

Some of the most popular podcast platforms include iTunes, Podbean, Blubrry and Soundcloud. Some creators choose to host and upload their episodes on multiple platforms.

Why It Matters To Direct Selling:

Podcasts are an underutilized medium in direct sales, but one that can’t be ignored. Most of today’s activity within the industry comes from individual distributors, with few corporate teams developing their own podcasts.

The focus is on attracting a target audience with educational or entertaining content. Examples are educating about a product category, talking about interesting topics, interviewing experts or interviewing successful field leaders.

“Your podcast content should not be about you, but about solving your prospects’ problems,” says journalist and podcast producer Steve Lubetkin.

A great industry example is the official Isagenix podcast (IsagenixPodcast.com). The platform has three main categories: Wealth Creation, Science Talks and Transforming Lives.

The Wealth Creation episodes tell distributor success stories, cover the value of attending events and detail tips on growing the business. Episodes in Science Talks interview doctors and nutritionists, cover relevant health issues such as gut health and dive a little deeper into why the products work. The Transforming Lives section shares stories of how the products and business are impacting the lives of people from all different backgrounds.

Expert Summary:

“Every company can find authentic stories related to their brands, whether those stories are revealed through interviews, investigations, or real-life demonstrations. With some serious thought about what kind of stories your brand can tell and a commitment to honesty, you have what you need to begin making an engaging podcast, no matter what industry you’re in,” says Nicole D’Angelo, associate editor of Skyword.

Did You Say Something?

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Using Sensory Acuity To Get Your Message Across

Have you ever sat through a presentation that completely bombed, leaving you and the rest of the audience asking the question, “Did you say something?” Maybe you were that presenter. I’ve been there myself—before I learned one of the most valuable communication lessons of my career: Any time we are making a presentation— whether it’s to an audience of hundreds or a single individual—we are engaged in a two-way conversation.

Even though you, as the presenter, may be doing all (or most) of the talking, you’re still having a “conversation” with the audience. And when you have a conversation with someone, you subconsciously read cues from them—and you tailor your level of receptivity accordingly. Try this on: If you’re not “listening” to your audience, why should they bother listening to you?

Bringing All Your Senses To Forefront

Good presenters need to consciously bring all their senses to the task at hand. We call the full employment of your senses Sensory Acuity. We don’t stop to think about it all the time, but the fact is that our entire perception of the world is a reflection of what we absorb (or have absorbed in the past) through our five senses. Even our emotional experiences and memories are bits of data stored in our brains.

Sensory Acuity is a term that comes from Neurolinguistic Programming (often referred to as NLP). I became fascinated with NLP in the mid-1980s. Since then, I’ve studied it at length, written three books of my own about it, and put it to work in my everyday life and for my clients. My thirty-first book (I’ve now written about five dozen), a best-selling Simon & Schuster book called Life Is a Series of Presentations, was endorsed by Shark Tank’s Daymond John as one of the six top must-read books in the world, right up there with Think and Grow Rich. In chapter three, we talked extensively about NLP, and about Sensory Acuity in particular, so we‘ve built that chapter into a critical learning for you here.

“Neuro” refers to the study of the brain and nervous system; “linguistic” refers to language and its characteristics; and “programming” is the development and implementation of a strategy or plan. So Neurolinguistic Programming is a long-winded name for the study and use of language as it impacts the brain, and therefore our behavior. I really got into NLP when I began to realize the implications it had for presentation effectiveness. (Note: While NLP has the potential to be used to manipulate an audience, I strongly believe effective presentations must come from the heart, must be genuine, and must not be manipulative. If used with a light touch, NLP can truly magnify the impact of our presentations— and magnifying impact is cool.)

6 Principles Of Neurolinguistic Programing

Here are six broad principles of NLP that I believe will help you have a greater impact with your presentations:

1. We must respect different perspectives. People view the world differently, depending upon their life experiences: what they’ve read, seen, and felt; their religious experiences; their formal education; what their parents have taught them; where they’ve lived and continue to live; and what kind of people and environment they’ve been exposed to. As a result of these varied experiences, different people use different frames of reference to analyze and respond to what’s going on in the world. So, while we may not agree with the way some other people see the world, we must respect their views as having been legitimately arrived at based upon what they know and don’t know of life. If we are to communicate effectively, we must do justice to those differences, because such an understanding makes us more flexible, and therefore more effective.

2. Our communication goes beyond the words we choose. The way we say things and the way we receive information are as important as the actual words we use. While we should never lose sight of why we are communicating with our audience and what we are communicating about, we also must always be conscious of how we are communicating. Our verbal vocabulary is just one piece of this puzzle.

3. When we become like our audience, our message is better received. People are much more receptive to messages from those whom they consider to be like themselves. As a consequence, the presenter who appears to be similar to the audience has a much greater opportunity to achieve rapport. So we should strive to create sameness with our audience.

4. People receive information differently. While most people appear to have all their senses, it turns out that individuals have different preferences for receiving information. If you were bilingual and went to a foreign land where you knew the language, you would likely communicate better in the native tongue than by persisting in English. So it is with the ways people receive information. Once we discover their preference, we must endeavor to adjust the “language” of our presentation for optimal understanding.

5. We also reject information based upon subconscious personal preferences. Just as people have preferences for the way they wish to receive information, they have inclinations about what information they would prefer not to receive at all—or will only agree to receive in an altered way. By understanding the way our audience filters information, we have another means to adjust our approach for better rapport.

6. Generalizations and other loaded phrases can work against our message. We must choose our words with precision and understand which words and phrases hamper or defeat our ability to communicate effectively. Clarity of language can be as important as clarity of purpose.

The founders of NLP, Richard Bandler and John Grinder, reasoned that if a skilled communicator could learn through observation the specific ways an individual forms internal images and thoughts, they could use that information to have a more direct effect on how that individual receives the message. Of course, this only works to the extent that the communicator is willing to adjust to the audience. The person with the most flexibility has the best chance of achieving the outcome he or she desires.

Sympathize, Leverage & Connect

In many ways, NLP is nothing more than a formalized approach to sympathizing with the person to whom you are trying to communicate and then leveraging that connection to get your point across. Remember that one of the most powerful forces that act upon our receptivity to a message is the Liking principle: We like and trust people who are like us. We will largely succeed in our presentations to the degree that we can successfully be like our audience.

Research indicates that, on average, about a third of what you communicate to others has to do with the way you say something rather than the words you choose. As it turns out, usually only about a small percent of what you communicate is comprised of the word selection itself—about half of the message comes from your body language. You must always be aware that how you say something is potentially five times more powerful than what you say. Be aware that the how includes tonality, rhythm, volume, and the way you say your words and phrases.

If the discipline of NLP teaches us anything, it is the importance of precision in our communications. Study after study has shown that the more precise a person is in communication, the more successful he or she becomes. The highest achievers are those who are able to clearly convey their abstract visions and ideas to almost anyone.

Morinda’s New Path

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MORINDA
Founded: 1996
Headquarters: American Fork, UT
Top Executives: Brent Willis, CEO
Products:Healthy beverages, skincare, supplements

 

Morinda establishes its new home within the New Age Beverage family of healthy beverage companies.

The world’s leading experts on the health benefits of Tahitian Noni Juice never experienced a humble beginning. Morinda exploded onto the health and wellness scene in the late 1990s, introducing the industry to the superfruit noni. With an original line of consumable and topical noni products, the company offered consumers three things: better health, better appearance and financial freedom through the business opportunity. From explosive expansion in its early years to a more stable pattern of growth in the last decade, Morinda has continued to offer those same three benefits, growing to over 300,000 distributors with a presence in more than 60 countries.

Today, Morinda is poised to experience explosive growth yet again, following its December 2018 merger with publicly traded New Age Beverages Corporation.

New Age, New Beginning

On December 5, 2018, Morinda announced this new direction for the company. Merging with New Age Beverages Corporation (New Age) represented a huge opportunity for both companies—Morinda distributors would now have access to select New Age product lines and New Age would now have a completely new distribution channel. The New Age portfolio includes Marley coffees and yerba mate beverages, Xing teas, Búcha kombuchas, Coco Libre coconut water, WATERisLIFE artesian waters, as well as recently acquired Brands Within Reach brands, which includes Evian and Illy.

“At New Age, our dream is to become the leading healthy beverage and lifestyle company in the world.” —Brent Willis, CEO

The merger announcement also presented beverage industry veteran Brent Willis as the new CEO for the combined company. According to Willis, this new venture will empower New Age to pursue its ultimate goal. “At New Age our dream is to become the leading healthy beverage and lifestyle company in the world,” he explains. “We will achieve our goal by flawlessly executing our business plan and by staying true to our purpose—to educate and inspire the planet to ‘Live Healthy.’”

A new company, a new CEO and a new goal—but what would the thousands of existing Morinda distributors think? “We were a little nervous, you never know what the reaction will be with big news like this,” says Adam Olsen, Director of Marketing and Communications. “When we held our first global event following the announcement, we were very excited to see what the pulse of the room would be. We found that our leaders embraced this merger. Brent won them over 100 percent immediately. His energy and assertive take on the world really resonated with leaders and consultants—the reactions were universal.”

Morinda distributors were suddenly more than consultants—they had the opportunity to become owners of this new company. “We wanted to make everyone owners,” says Shon Whitney, Senior Vice President, Sales and Marketing. “We created a program where our distributors can earn stock in the company and part owners. We shifted from a founder-led company to a public company where everyone could be an owner. It’s really been a huge plus for our culture.”

Two quarters in, the combined company is hard at work shifting into its new omnichannel distribution model, which includes Morinda’s direct-to-consumer sales, and New Age’s e-commerce, affiliate and retail sales. Both the leadership and the investment community are excited by the company’s progress thus far.

“I believe we are doing great and well on our way to achieving our goal,” says Willis. “The integration could not have gone smoother so far. Not only have we gained over $4 million in cost savings from synergies and already fully combined human resources, legal, IT, and operations, but most importantly, we have done those things while staying on plan and delivering our 1st quarter financial targets. We emplaced our first ever banking line for $35 million. We sold a non-core asset for $55 million, and we increased our cash balance to over $40 million. Altogether. That is huge for our company and puts us in an incredibly strong financial position.”

The Morinda Opportunity

What began as a product line defined by Tahitian Noni Juice has expanded to include six “brands” within the Morinda collection:

  • Tahitian Noni – Noni juice, essential oils, serums and body lotions
  • ‘NHANCED CBD – Topical CBD oil, body cream and gel
  • TeMana – Noni-infused skincare and cosmetics
  • HIRO – Noni-infused energy beverage

Distributors can now share products from these Morinda brands as well as select lines from the New Age collection of products, which has inspired a younger generation of both customers and prospective distributors. “Our past demographic was women over 40 with our original product,” explains Whitney. “These new brands make us more attractive to a millennial audience. We’re seeing more sign-ups in the younger demographic from our CBD and TeMana lines in pretty large numbers in Asia and that’s starting here in the U.S. as well.”

New distributors are guided through the Morinda onboarding system, which includes training through the company’s Morinda University online program and in-person training events. Qualifying distributors have access to the Morinda University Advanced Course where they’re invited to specialized training on social media, lead generation and best business practices.

Social media is a priority for Morinda, especially in recent years. “We love it, we embrace it and love to share the personality behind our brand—we hope it resonates with a large audience,” says Olsen. “We want to be a consumerfriendly brand, so we set an example for our distributors to use social media in an authentic, creative way. We feel like we have a cool story to tell and want to be a good example.”

A Reinvigorated Future

Morinda’s entrepreneurial culture has been a constant from the company’s inception, but the New Age merger has given distributors and corporate employees a new vision for the future. “There’s an aggressive streak now in the company,” says Whitney. “Being 22 years old, you get comfortable—this merger has shaken that up.”

“The merger has reenergized the growth mentality that was such a big part of our past and culture for so many years,” Olsen adds. “In the early days, we were ambitious—we wanted to show the world how much good this fruit from Tahiti could do. We had ambitions to share noni with the whole world. Now we see that bold ambition from Brent and New Age—we have a ‘take on the world mission’ that meshes well with our company’s history.”

Morinda’s goal is to be the #1 healthy beverage company in the world. To achieve it, the leadership team is pursuing three main objectives—to expand in both new markets and new demographics, to launch new product lines and perfect Morinda’s new omnichannel distribution model.

With new research, product lines and strategic announcements anticipated for years to come, Morinda has a lot to look forward to. “We have everything we need to be successful, and nothing is going to stand in our way of achieving success,” says Willis. “Our key is to be fast, first, and focused, and maybe a bit fanatical. As we do, everyone will benefit as a fellow shareholder.”

Under the Influence

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Does influencer marketing have a place in direct sales?

The concept of working with celebrities to promote brands is evolving into highly targeted campaigns with online influencers. Influencer marketing is now big business, and according to the experts, it is only going to grow.

What’s Happening:

While consumer buying habits continue to evolve along with brand trust and engagement, money spent on influencer marketing is projected to reach $6.5 billion in 2019. That would more than double the numbers from just two years ago. According to InfluencerMarketingHub.com, Google searches for “Influencer Marketing” grew by 1,500 percent over the last three years. The site also shows that businesses earned an average of $18 in media value for every dollar spent on influencer marketing in 2018.

of marketers chose
Instagram as the most
important social platform for influencer marketing.

For now, Instagram is the ultimate social platform for this type of promotion. A Linqia study found that 92 percent of marketers chose Instagram as the most important social platform for influencer marketing. The content is quickly consumed while still allowing time for the right message to get across in the form of compelling images or short videos. Users can follow tags and specific topics of interests, allowing them to quickly connect with others and follow specific influencers they’re interested in.

Defining and identifying the right influencer for your brand and business can fall within a wide range. An online influencer doesn’t have to be someone with hundreds of thousands of followers. In fact, working with someone with a smaller, targeted following seems to be the sweet spot.

Why It’s Working:

“Micro-influencers” can be defined as those with roughly 10,000-100,000 followers with a dedicated niche audience specifically interested in the content the influencer provides. A study by Keller Fay Group showed that micro-influencers have 22.2 times more weekly conversations about things to buy than the average consumer, and 82 percent of survey respondents said they were likely to follow those recommendations.

“For real engagement, you need a micro-influencer,” an article on JeffBullas.com claims. “These are people with specialist interests and smaller audiences who often deliver higher engagement rates than the celebrity influencers… Their audiences not only share their specific interests and values— they trust what micro-influencers have to say about products and services.”

Choosing The Right Influencers:

Authenticity is the secret sauce when working with influencers. Being authentic is what likely built their following and personal brand in the first place. “Fans of an influencer want to believe that there is a genuine connection between the influencer and the ad,” says a Forbes.com article.

When choosing someone to work with, pay attention to their engagement and relationship with the followers. Higher engagement rates (likes, comments, shares, etc.) is a good indicator of a real, organic following of people who trust and listen to the influencer. Look for original, creative content that matches the influencer’s personal brand. They are effective because they understand their audience, know the proper hashtags to target, regularly create engaging content, and know how to attract others to grow their audience.

Most influencers promoting brands want a longer-term partnership in line with their own interests as well as the interests and needs of their followers. Communicate what value you can bring the influencer, such as product samples, early access, or exclusive experiences. It doesn’t have to be just money. Also, be willing to let the influencer get creative with the message or ad.

“Brands should give influencers sufficient creative freedom to keep posts authentic, as it makes posts less likely to be dismissed by users,” says an article on BusinessInsider.com. “Other best practices include repurposing influencer content for multiple platforms, evaluating the audience and following of an influencer, and leveraging data to optimize future campaigns.”

Why It Matters To Direct Selling:

A shift toward word-of-mouth, experience-based online promotion should be welcomed news for direct selling. Genuine, authentic relationships and brand experiences are at the core of the direct sales industry, and that’s exactly what’s working with online influencers.

A study by Influence Central revealed that 86 percent of women are going online for shopping advice. Taking advice from influencers can be a nearly identical experience to direct sellers communicating with and influencing their customers. The connection and relationships are built on trust.

So, would partnering with an influencer in your industry replace an independent distributor? Not at all.

A direct selling company could use an influencer to help build the overall brand, generate buzz for a product launch, or document their experience going through a program. Some influencers may cross several social platforms with multiple audiences. Focusing on the right special platforms can greatly depend on your product or service. The beauty and makeup category is a natural fit for Instagram, while health and fitness might match better with a YouTube influencer.

An Expert Sums It Up:

“I think influencer marketing is going to have an incredible global era for the next decade, and we’re just at the beginning of it. Every day there are brands that go from $0 to $15 million in sales with no overhead or infrastructure on the back of influencers on Instagram. If you’re not working with influencers, you need to be,” says Gary Vaynerchuk.

The Power of Pink

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An icon in both the beauty and network marketing industries, Mary Kay has been focused on empowering women since its inception in 1963—long before female empowerment was mainstream news.

Mary Kay
Founded: 1963
Headquarters: Dallas, Texas
Top Executives: David Holl, CEO
Products: Skincare and cosmetics

Today, with millions of consultants worldwide, 1,500 corporate employees and sales in the billions, Mary Kay operates in the fullness of that empowerment legacy with eyes on the future, a growing product collection and constantly evolving beauty science. In the last year alone, Mary Kay has marked a huge anniversary, opened a state-of-the-art manufacturing facility, unveiled groundbreaking new products and presented compelling scientific data.

Today At Mary Kay

For women around the world, the Mary Kay business opportunity represents the same possibilities that it did when Mary Kay Ash launched the company in 1963. “She founded her namesake company to provide women exciting opportunities and empowerment through entrepreneurship,” explains Chief Operating Officer Deborah Gibbins. “More than 55 years later, being a Mary Kay Independent Beauty Consultant remains an amazing opportunity for women who want to build their future and create their own schedule.”

Aspiring consultants connect with existing Independent Beauty Consultants who guide them through the registration, on-boarding and training processes. Armed with a starter kit, access to training workshops and meetings and the support of their up-line consultant, new Mary Kay Independent Beauty Consultants have everything they need to pursue their business goals. While the opportunity may look very similar to what Ash had in mind, the products, technology and science behind it have evolved in ways she couldn’t have dreamed.

In 2016, the company launched the myCustomers℠+ app, a tool that serves a range of business needs on the go. “Our Independent Beauty Consultants are able to create sales tickets, manage inventory and service their customers from their mobile devices,” shares Gibbins. “This app helps attract more women to the Mary Kay family, improves the way they join our network, and enhances how our Independent Beauty Consultants manage their sales.”

The company also launched additional apps to support consultants, including a digital shareable interactive catalog, a real-time makeover app that allows customers to “try before you buy,” and a skin analysis solution that scans customers’ faces and then uses AI technology to provide personalized skin assessment and product recommendations.

“More than 55 years later, being a Mary Kay Independent Beauty Consultant remains an amazing opportunity for women who want to build their futures and create their own schedules.” —Deborah Gibbins, Chief Operating Officer

The Science Of Beauty

Tech advances make running a business easier for today’s Mary Kay consultant, but without timely and tested products, that technology is simply code. Since its inception, Mary Kay has been one step ahead of the marketplace and has the research to prove it.

“Every year, Mary Kay conducts hundreds of thousands of scientific tests on products and ingredients to ensure our products meet our high standards of safety, quality and performance,” says Lucy Gildea, Chief Scientific Officer. “In fact, Mary Kay holds more than 1,500 patents for products, technologies, and packaging designs in its global portfolio.” The company’s latest research was presented recently at the 77th Annual Meeting of the Society for Investigative Dermatology and highlighted the impact of vitamin C on skin health and appearance.

“The new data was collected while analyzing the effects of a serum containing five botanical fruit extracts known to be rich in vitamin C,” Gildea explains. “Mary Kay researchers treated artificial skin tissue with this serum and utilized a genomic approach to understand how the serum affected the skin. This genomic evaluation confirmed the serum’s impact on four main classes of genes, which are important for skin firmness. Furthermore, the study showcased that the serum increased production of dermal matrix proteins—collagen and laminin— that support skin firmness.”

Mary Kay’s investment into the benefits and applications of vitamin C inspired the recent launch of TimeWise® Vitamin C Activating Squares™. “This product has revolutionized the way pure vitamin C is delivered to customers’ skin,” says Gibbins. “We were thrilled it was named the 2018 Product Innovation Winner from the Direct Selling Association this year.”

Mary Kay’s commitment to research now stands tall with the opening of the Richard R. Rogers (R3) Manufacturing Facility, which houses manufacturing, labs for research and development and collaborative work environments. “The facility, named in honor of our company co-founder and son of Mary Kay Ash, features state-of-the-art R&D laboratories and cutting-edge manufacturing technology, and functions as a Zero Waste to Landfill facility,” Gibbins shares. “It recently received its silver LEED certification and is also home to the one-millionth tree planted as part of our Pink Doing Green initiative.”

In 2016, the company launched the myCUSTOMERSSM+ app, a tool that serves a range of business needs on the go.

Looking Ahead

Mary Kay’s leadership team believes that research is the key to the company’s success for years to come.

“We will continue to develop high-quality, innovative products that deliver the skin care benefits our consumers crave, while simultaneously meeting our high efficacy and safety standards,” says Gildea. “We continue to look beyond the beauty industry for inspiration in product development and innovation. Our team is always exploring exciting opportunities to transform the future of skin care, and we are excited to share our findings as we move forward.”

Gibbins adds, “Beyond the science behind the beauty, we remain dedicated to making the world a more beautiful place by expanding and evolving The Mary Kay Foundation’s missions to eradicate cancers affecting women and end domestic violence through a series of meaningful global partnerships with leading research institutions and changemakers.”

“As Mary Kay looks to the future of both the beauty industry and business itself, its leaders draw inspiration from Ash herself. We continue to honor the culture instituted by our founder,” says Gibbins. “We believe in teamwork and respect while building working relationships through trust and honesty. We believe in making our employees feel valued and rewarded for their hard work. We enjoy celebrating their successes and milestones, both professionally and personally.”

A Pink Anniversary

Mary Kay marked its 55th anniversary last fall by partnering with the Fashion Institute of Technology (FIT) to unveil an exhibit that celebrates the brand’s signature color. Pink: The History of a Punk, Pretty, Powerful Color opened on September 7 at The Museum at FIT in New York City and showcased the color pink through 80 different ensembles, ranging from 17th century designs to modern day apparel.

“From our makeup palettes to our Cadillacs, pink is Mary Kay’s signature color—so the partnership was a natural fit for us,” says Gibbins. “The exhibition concluded with a scholarly discussion centered around our signature color moderated by Mary Kay Chief Marketing Officer Sheryl Adkins-Green.”

How We Are Stronger Together

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Your Support for Preserving the Direct Seller Independence Act

Technological advances have transformed the consumer experience, and a few taps on a smartphone app can make all manner of daily responsibility faster, easier and often more affordable.

There’s no doubt about it: while tech has ushered in a revolution in the delivery of goods and services, it has simultaneously altered and expanded opportunities for a brand new generation of people yearning to work independently and on their own terms.

As direct sellers, we are America’s original entrepreneurs. More than a century of experience brings us the knowledge that working independently is something anyone can achieve. Direct selling empowers individuals to choose when and how much we work. Customers are engaged when we choose to do so, and when we believe they might want to learn more about what we have to offer.

Our hopes for what can be achieved from our businesses are guided by the decisions we make for how to operate our businesses. Working full-time, or only a few hours a week, is the decision we can make daily and with input from our families.

Since 2009, technology has accelerated at an unrivaled pace and has introduced new variety of platforms that are transforming the concept of independent work. Congress has recognized federal labor laws that haven’t been updated since the 1930s as being outdated. As a result, it is seeking to update these statutes. But in doing so, legislators are coming to recognize that all independent work is not created equally.

For more than thirty-five years, the Internal Revenue Service Code has recognized direct selling’s independence as statutory nonemployees. This statute was the result of a herculean effort by DSA staff and members working with Democrats and Republicans on Capitol Hill. The statute has been a vital part of the business model’s personality since the early 1980s.

As the workforce continues to undergo sweeping changes, DSA is working to make clear that the business relationship direct selling companies and salesforce members have enjoyed decades before the internet and smartphones is protected.

This is why I call on direct sellers everywhere to join in support of Rep. Tim Walberg (R-MI) and Josh Gottheimer (D-NJ) for their leadership introducing H.R. 3522, the Preserving the Direct Seller Independence Act, legislation that ensures the protection of a business that has provided supplemental income earning opportunities to generations of Americans.

The Preserving the Direct Seller Independence Act makes the position of direct selling clear in these conversations about the workforce of the future clear so that authentically independent workforce and a vibrant retail channel can continue to thrive.

Your Message ‘IT’ Factor

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It belongs to those whose marketing puts customers at the center of their universe.

It takes a lot to stop us in our tracks. We are constantly entertained, and when we’re not, we can turn to our bloated newsfeeds for a dose of information, inspiration, sarcasm or anxiety, with promoted content interspersed in between. With the average U.S. consumer checking his or her smartphone 47 times a day, and the average millennial checking 86 times per day, that equates to a lot of views and opportunities. So, when it comes to marketing, most of us feel as though we’ve seen it all all.

But every now and then a brand or a product will strike a different note that makes us pause. It’s the kind of messaging that makes us take action:

  • We stop scrolling and click to learn more.
  • We read the comments section.
  • We sign up.
  • We purchase.

These companies have tapped the elusive “IT” factor that can be difficult to describe but is something we all know when we see it.

In a content cacophony, how do these “IT” factor brands talk about themselves in a way that makes customers sit up and listen? For starters, they aren’t talking about themselves.

What Have You Done For Me Lately?

You wouldn’t write a love note to yourself, but that’s exactly what many companies instinctively do. Home pages often tell long origin stories, introduce the executive team and show glamour shots of their home office building and flagship product. However, most of us would have a difficult time listing the last few ads or landing pages we saw. Why? Because they don’t benefit or serve the viewer, therefore they’re forgettable.

What customers remember is the way a brand made them feel, how it inspired them to act or the problem it solved. Marketing may seem like it’s all about selling to the customer, but it’s actually about engaging with the customer—creating a relationship. Seth Godin, bestselling author and renowned marketing expert, describes messaging that isn’t customer-focused as selfish. “We have a choice,” Godin says, “and if we sense that this is all about you, not us, our choice will be to go somewhere else.”

The “IT” factor belongs to those who make customers the center of their universe, but standing out is just the beginning. Relevancy is everything in a world filled with distraction. Messages that don’t resonate with customers or speak to their unmet needs simply become part of the noise.

“What customers remember is the way a brand made them feel, how it inspired them to act or the problem it solved.”

The Rules Of Engagement

Relevant, simple and repeatable is marketing gospel. Developing a catchy slogan isn’t enough. Customers need to connect with the emotion or solution that your brand is offering. That starts with paring down the complexity. If your executive team can’t explain what you do in a few sentences, your distributors won’t know how to either. So, cut the clutter of difficult vocabulary, lengthy product explanations and excessive company accolades that focus too much on the brand and not enough on the customer. What is intended to be informative and catchy could actually be disruptive. It’s essential to savagely simplify every customer touchpoint, including websites, collateral, social content and mobile alerts.

Simplicity doesn’t mean boring. Companies seem to be waging a constant battle to prove that they are (often, only marginally) better than their competitors. While everyone else is jockeying to be the winner by a slim margin, brands with the “IT” factor spend more effort illustrating how they are different.

When Tesla entered the heavily guarded automotive segment, they leveraged their differences—selling electric cars and having no traditional dealerships—to make their mark. But where Tesla really disrupted the industry gatekeepers was their approach to customer service. Instead of marking up costs on parts and services, Tesla created a system that is essentially profit-free and includes technicians scheduling house calls to make car repairs, often at no cost to the owner. Individuality paired with a beneficial and easy customer experience stands out, especially in a category so entrenched with tradition and the expected. For Tesla, that meant taking a predictable pain point for customers and turning it into marketing gold. Customers are drawn to dynamic and confident brands just as they are charismatic personas. Not only did Tesla’s innovations make their competitors look dated and greedy, they appeared to be bold, confident new leaders in the industry—a trait that turns customers into eager and loyal followers.

Tesla created a system that is essentially profit free, Often at no cost to the owner. Individuality stands out, especially in a category so entrenched with tradition and the expected.

Experience Required

Consumers are more selective than ever with where they spend their time and attention. With them in the driver’s seat, brands need to deliver not just quality products, but an exceptional experience as well. Customers want to see for themselves how the product’s benefits will come to life for them in tangible ways. They expect to have more to show for their purchase than the product in their hands. They want Instagram-worthy packaging, VIP-level customer service or digital marketing that makes them feel like part of the in-crowd—something that gives them a unique edge over the rest of their social media feed.

One or two generations ago, Barbie could maintain the lion’s share of the market simply by creating new doll characters. Today, the American Girl doll brand feeds its loyal customers not only dolls but historical dramas through books and a physical store filled with experiences including a café, doll hospital, a salon and details that suit their most important customers: kids.

When customers interact with a brand like American Girl doll, who is designed to narrowly target the niche likes and purchasing habits of their intended audience, they feel seen. In his bestselling book Building a StoryBrand: Clarify Your Message So Customers Will Listen, Donald Miller describes this commercial connection like a relationship. “People trust those who understand them, and they trust brands that understand them too.” When brands quit marketing to the widest audience possible and drill down to find the smaller audience that is more in tune with their voice, products and mission, they become more effective engines for change and develop more profit potential. No one can be all things to all customers, but brands who seek to serve their specific audience with reckless abandon will find they’ve found that ultimate, elusive reward: The “IT” factor.

Supercharge Your Message

Women not only make up three-quarters of the direct selling workforce, but they also make up 70-80 percent of global household purchasing decisions as well. And since statistically women serve as the caregivers for all generations—aging parents, children—their buying power encompasses multiple demographics in one. Companies who make women’s interests a priority and recognize their representation can supercharge their marketing efforts, but many brands aren’t considering women when they build their content strategies. One solution: create a more gender-diverse leadership team. If brands want to speak to women in a way that will solicit a call to action, it makes sense to tap into a woman’s nuanced and experienced perspective. In the absence of that diversity, a simple guide for content creators—“We want value, we want to feel valued and we want to know how your product, service or opportunity solves a problem that we have.”

Billion Dollar Markets

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It was another record year for the direct selling industry, which garnered $192.9 billion (constant U.S. dollars) in estimated retail sales globally in 2018—a 1.2 percent increase over 2017—and produced 24 Billion Dollar Markets, according to research by the World Federation of Direct Selling Associations (WFDSA), its partner DSAs and direct selling companies around the world.

Global direct selling performance since 2015 has added $9.3 billion to the industry overall, which constitutes a 1.7 percent Compounded Annual Growth Rate (CAGR). And in that time, the growth of China as a direct selling powerhouse prompted expectations that the Chinese market would eventually reach the top spot on the Direct Selling News Billion Dollar Market List.

In 2018, estimated retail sales in China barely eclipsed those of the United States, prompting WFDSA to announce a tie for the top spot. While data may be restated later in 2019 as actual sales data becomes available, this represents an anticipated change and could usher in a new era within the global direct selling industry.

Sales Up In 65 Percent Of Global Markets

The top 24 sales-producing countries—the Billion Dollar Markets—comprised 94 percent of $192.9 billion in global retail sales. 2018’s 1.2 percent global growth was driven by regional increases in Asia, the Americas and Africa/Middle East. Europe reported flat sales performance. All told, however, sales in 65 percent of direct selling countries around the world were up.

The industry’s global sales force reached 118.4 million, up 1.6 percent over 2017. Since 2015, more than 13.8 million more individuals have joined the ranks. New sales force segmentation data shows 10.5 million full-time (30+ hours weekly), 42.9 million part-time (up to 30 hours weekly) and 64.9 million who have recently joined; many who join because they love the product and want to purchase at a discount; and others who join but just never become active. Seventy-four percent are female; 26 percent are male.

The Americas 2018 year-over-year performance was up 1.5 percent from a flat 2017, while Asia experienced the largest regional up-tick with 1.8 percent growth. The smaller developing Africa/ Middle East grew 1.4 percent, but Europe declined slightly—0.3 percent.

“We are pleased by the solid growth considering the uncertainties in the overall retail market vis- à- vis online sales. Thus, the numbers were a bit of a surprise and also were a confirmation of the robust nature of direct selling.” —Joe Mariano, President U.S. Direct Selling Association

Regional fluctuation is common with Australia, Taiwan and Thailand losing ground in Asia; Canada and Brazil in the Americas; and Italy, the United Kingdom and Russia dropping within the broader European market in 2018. But there was plenty of growth to offset declines. India, Indonesia, the Philippines, Peru, Colombia, and Poland marked significant growth, as did Argentina’s inflation-fueled escalation of 23.1 percent.

The global industry is on track, believes Tamuna Gabilaia, Executive Director and COO, WFDSA. Economic circumstances produce flat sales in some markets in some years. “If you look at CAGR, where we measure sustained growth of the industry, it was 1.7 percent. This shows sustained growth and that our industry is basically resilient,” she says.

Emerging Markets Expanding Their Global Share

Underway for years is a trend toward global market balance. The trajectory of emerging market sales began rising, while advanced/developed market sales plateaued. Nine years ago, 68.1 percent of sales came from advanced markets, but emerging markets continue to expand their global share of sales.

In 2018, emerging markets made up 42.7 percent of global sales. This overall trajectory of emerging markets will eventually overtake advanced economies, which made up a 57.3 percent share in 2018.

“Everywhere you look, emerging markets or developed markets, people are looking for an additional way to earn income. In the age of the gig economy, a 9 to 5 job is becoming the past and everyone wants to be his or her own boss. Direct selling offers the opportunity for people to do that,” Gabilaia says.

The combined markets of North America and South/ Central America reported $62.4 billion in estimated retail sales for 2018, a growth of 1.5 percent. 2015-2018 CAGR was up slightly at 0.5 percent. The Americas comprised 32 percent of global retail sales with eight Billion Dollar Markets. Cosmetics and Personal Care products hold 34.6 percent of sales; Wellness at 26.7 percent; and Household Goods and Durables a distant third at 12.1 percent. There are 31.0 million independent representatives, down 2.1 million from 2017. This 6.5 percent drop in 2018 follows a loss of 5.8 percent in 2017. All told, sales force reduction since 2015 stands at 3.6 million, due in large part to the re-segmentation of their sales forces by U.S. companies.

Regional data for the Americas are reported together; however, the Americas are split here to better understand each of the distinct markets.

North America

North American direct sales increased in 2018, up 1.1 percent. The United States rebounded from its flat 2017 performance with growth of 1.3 percent and sales of $35.4 billion. However, U.S. CAGR sits at -0.7 percent. Canada produced $1.9 billion in sales in 2018, a drop of 2.4 percent. Despite the 2018 loss, Canada’s 3-year CAGR from 2015-2018 is 1.5 percent.

“New economic trends such as the growth of e-commerce and the collaborative economy show that more than ever, direct selling is a pillar of the retail sector.” — Marie Lacroix, acting Director of Seldia, The European DSA

North American independent representatives number more than 17.8 million, with 16.5 million in the U.S. and just over 1.2 million in Canada. While Wellness is the top U.S. product category at 35.6 percent, Canadians’ largest selling category is Cosmetics and Personal Care items (36.8 percent).

“We are pleased by the solid growth considering the uncertainties in the overall retail market vis-àvis online sales. Thus, the numbers were a bit of a surprise and also were a confirmation of the robust nature of direct selling,” says President of U.S. DSA Joe Mariano.

Like every industry, 2018 posed challenges for the U.S. market ranging from economic to regulatory. Last year produced even more growth with both independent work/gig economy and the U.S. DSA’s work to protect independent contractor status at the federal and state levels.

In 2019, Mariano expects fluctuation in the economy and on the regulatory stage, as independent work and those seeking flexible work schedules continue to expand. “We will continue to ensure direct selling is a strong, viable option for entrepreneurs who seek to make some extra income and enjoy a flexible schedule,” he says.

“This past year, we saw an uptick (2 percentage points) in the share of people involved in direct selling in the U.S. under 35. This is a promising indicator that our industry is maintaining relevancy and appealing to future generations, and it reinforces the optimism we have with our industry projections,” Mariano says. Share among seniors has remained stable.

With strong retail numbers and by further distinguishing full- and part-time sellers from customers, Mariano says, “We are able to see consumers still loving and buying products and services offered by DSA members. We are predicting between 1-3 percent annual growth over the next three years and will see greater focus on customers of direct selling companies.”

“We are predicting between 1-3 percent annual growth over the next three years and will see greater focus on customers of direct selling companies.” —Joe Mariano, President U.S. Direct Selling Association

South/Central America

Brazil, Mexico, Colombia, Peru, Argentina and Ecuador make up the South/Central American Billion Dollar Markets. Brazil reported the only downturn (-1.5 percent), but all other markets grew in 2018, representing 2 percent regional growth and reporting $25.1 billion in estimated retail sales. This region’s 3-year CAGR is 2.3 percent.

Billion Dollar Markets

Market performance breakdown is as follows: Brazil ($10.2 billion, -1.3 percent CAGR), Mexico ($5.9 billion, 2.3 percent CAGR), Colombia ($2.5 billion, 1.7 percent CAGR), Peru ($1.9 billion, 5.2 percent CAGR), Argentina ($1.6 billion, 33.4 percent CAGR), and Ecuador ($1.2 billion, 7.8 percent CAGR). It’s important to note that Argentina has a highly inflationary economy.

There are nearly 13.2 million independent direct selling representatives in South/ Central America. Cosmetics and Personal Care products comprise 62 percent of those sales, down from 66.0 percent in 2017.

Forty-six percent of global retail sales are generated in the Asia-Pacific region, which includes 10 Billion Dollar Markets. In 2018, Asia-Pacific sales totaled $89.2 billion with growth of 1.8 percent; 3-year CAGR stands at 1.9 percent.

In 2018, this region added some 4.6 million independent representatives to its direct selling sales force—a total of 69.7 million. This figure comprises some 59 percent of all direct selling independent representatives in the world. 41.2 percent of market sales are Wellness products and 29 percent Cosmetics and Personal Care products.

China is the largest market in the Asia-Pacific region with 2018 estimated retail sales of $35.7 billion, up 2.0 percent over 2017. China accounts for nearly 40 percent of Asia-Pacific’s sales. With estimated growth of 2 percent over 2017 and an estimated 3-year CAGR of 2.3 percent, WFDSA has ranked China in a tie with the United States for the number one spot on 2018 Billion Dollar Markets List. WFDSA estimates nearly 5.6 million Chinese participate in direct selling.

“The millennial generation looking for more entrepreneurial ways of earning is helping to boost the sector’s independent sales force and leading to the development of new, younger customer bases.” —Susannah Schofield, OBE, Director General of U.K. DSA

But the story of the Asia-Pacific region is not limited to China. There are nine other countries on the 2018 Billion Dollar Market ranking: Australia ($1.3 billion, -4.1 percent CAGR), India ($1.5 billion, 10.9 percent CAGR), Indonesia ($1.5 billion, 13.1 percent CAGR), Japan ($15.6 billion, -1.0 percent CAGR), Korea ($18.0 billion, 1.8 percent CAGR), Malaysia ($5.3 billion, 3.7 percent CAGR), Philippines ($1.4 billion, 8.6 percent CAGR), Taiwan ($3.9 billion, 3.2percent CAGR) and Thailand ($2.9 billion, 0.2 percent CAGR).

Direct Selling in Europe comprises a 21 percent share of global sales. Over 14 million people are active in direct selling, with just under 6.9 million located in the European Union. For Europe overall, Wellness accounts for 32.6 percent of sales, Cosmetics and Personal Care for 25.6 percent of sales, and Household Goods and Durables for 14 percent of sales, rounding out the top three European product categories.

“New economic trends such as the growth of e-commerce and the collaborative economy show that more than ever, direct selling is a pillar of the retail sector. The challenge for the coming years will be to adapt our channel of distribution to these new trends, to the rapid digital evolution, as well as to increasingly demanding customers,” says Marie Lacroix, Acting Executive Director of Seldia, the European DSA.

Germany ranks at the top of European Union countries on the Billion Dollar Market list with $17.5 billion in sales—a slight increase of 0.2 percent in 2018 and 2.7 percent CAGR. Poland increased nearly $1.2 billion in sales last year, up 4.5 percent from 2017 with a 2.3 percent CAGR. But the biggest European Union gains were in France with nearly $5.4 billion in sales, up 3 percent year over-year and 3.3 percent CAGR.

Companies operating in France are optimistic and predict growth, as they increasingly adopt multi-channel distribution, adjust to constant digital evolution and new consumer trends, says Jacques Cosnefroy, Executive Director of the French DSA. Italy ($3.3 billion, down 2.0 percent for 2018) and the United Kingdom (nearly $3.6 billion in sales, down 7.6 percent) experienced losses; CAGR stands at 2.0 percent and 0.4 percent, respectively. Giuliano Sciortino, Executive Director of the Italian DSA Avedisco, reports that recruitment difficulties due to a new state welfare legal status, the inability of traditional companies to adjust to new trends and digitalization, and a higher turnover rate among top distributors adversely affected Italy’s sales in 2018.

“Everywhere you look, emerging markets or developed markets, people are looking for an additional way to earn income.”— Tamuna Gabilaia, Executive Director and COO, WFDSA

Susannah Schofield OBE, Director General of the U.K.’s DSA, says the complete withdrawal of a U.S. company from the U.K. market, as well as two companies going into administration tipped their market sales down last year.

However, Schofield adds, “Consumer trends such as the demand for increasingly personalized retail experiences are providing significant opportunities for growth in the sector. In addition, a millennial generation looking for more entrepreneurial ways of earning is helping to boost the sector’s independent sales force and leading to the development of new, younger customer bases. It’s due to such factors that we expect 2019 to be a year of strong growth for many of our member companies, despite challenges such as Brexit.”

Russia, along with the smaller markets of Norway, Switzerland, Turkey, and Ukraine, represents the WFDSA data subcategory “Rest of Europe.” Russia’s nearly $2.5 billion in sales comprises 57 percent of all sales in Rest of Europe and identifies them as this region’s sole Billion Dollar Market. Their 13 percent growth in 2017 was not repeated, as 2018’s estimated retail sales dropped 5 percent. However, CAGR remained fairly steady at 6.1 percent.

The Rest of Europe generated nearly $4.4 billion in estimated retail sales last year, a drop of 1.4 percent and CAGR of 6.1 percent. Independent representative numbers also dropped by 7.4 percent—more than half a million—to 7.5 million. Estimated sales and product category reporting by the five main players in this region is inconsistent. But Cosmetics and Personal Care products rank number one, comprising 43.6 percent of sales in Russia and 65.4 percent in Ukraine. Within the Rest of Europe, Turkey had sales of $585 million in 2018, which makes it a market to watch in the coming years.