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Joining to Share Our Strengths

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Direct selling is strongest when we come together as a family and share our experience, insights and strengths.

We all know how Amazon has impacted competition on the product side of our business, and the emerging gig economy players that rely on independent contractors have brought even more disruption to the marketplace. We delight in finding the exciting new approaches that companies use to grow their bottom lines, as well as bring new success to their direct selling independent contractors who are America’s original entrepreneurs.

Sharing these insights at the DSA Fall Conference 2018 is how we will raise all ships across direct selling’s fullest spectrum—this is an event that you cannot afford to miss.

Hundreds of sales trainers, tech gurus, legal eagles and marketing professionals will explore the programs and strategies that today’s direct selling leaders use to defy the market’s disruptive forces and compete in new ways. Workshops will delve into the strategies that enable companies to compete even more aggressively in the evolving gig-economy. Participants will learn from one another’s successes in order to fine-tune their 2019 outlooks.

General Session keynotes will explore the megatrends shaping the future of business and consumer behavior, as well as the lessons learned from FORTUNE 500 companies that have used disruptive innovation to adapt. In addition to launching the new Social Selling Council (SSC) that will shape the vision for how we use social media to market, we will explore technology’s newest potential to generate social selling insights, and how it can help us better understand today’s consumers’ demands and needs.

So many companies have found success as they’ve opened new markets, and the one-day, pre-conference Doing Business in Canada Seminar will show how our northern neighbor—with its stable economy, strong consumer sentiment, predominantly English-speaking population and close proximity to the U.S.—could be your first step towards a global future.

November 2018 Cover

Pick up your print copy of the November 2018 issue in which this article appeared.

DSA Direct Selling Boot Camp is another one-day, pre-conference seminar where you can focus on your business, onboard new executives and learn best practices from leading direct selling executives who do what you do every day. This is where you get “back-to-basics” insights and peer-imparted wisdom.

While the new Direct Selling Self-Regulation Council (DS-SRC) will do so much to protect consumers and make direct selling more competitive than before, it also provides a new business context that has implications for every company that uses the direct selling channel as a go to market strategy. DSA Fall Conference 2018 will explore what this game-changing new normal means for companies and the industry, and its implications for protecting the independent contractors who are our businesses’ lifeblood.

At this moment, one thing cannot be clearer: in spite of today’s market disruption, DSA member companies are revolutionizing their thinking to compete in ways that disrupt the disruptors, capture market share and thrive in a redefined competitive landscape.

The DSA Fall Conference 2018 is the most important event of the year. Come build new friendships and strengthen long-standing relationships that can transform your business. Interact with other direct selling executives, representatives from government agencies, noted academics and researchers.

This is a cannot miss event—see you in Arlington!

Melissa Brunton

Melissa Brunton, Senior Vice President, Education & Meeting Services, DSA.

What Does Entrepreneur’s Choice of Halloween Costume Reveal?

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Today, approximately 180 million people in the US will celebrate Halloween, including millions of entrepreneurs.

The National Retail Federation and other sources report that of those 180 million people, approximately 2.5 million adults will dress as vampires, 4 percent will dress as Donald Trump and 7.2 million as witches. With adults so engaged in Halloween, Einstein Marketing Group (EMG) looked at the correlation between the Halloween costume and the entrepreneur’s personality.

Witches

Witches are often depicted as casting spells, controlling situations, and having the ability to change their image to others at a moment’s notice.

Bottom line: If black robes and hats, pointy shoes and warts make up your costume, start thinking about the amount of energy you use to hide how much you like to take control in your business or in other people’s lives. Delegating tasks, or working on teams or with partners, may be issues for you. Conversely, this costume choice may reveal you want more control over certain aspects of your business, but may be afraid, or may not know how to command it.

Pirates

Pirates are very masculine, strong, powerful and may not have a problem with corruption.

Bottom line: If ripped pants, puffy shirts and eye patches make up your costume of choice, ask yourself why you have a difficult time enjoying your accomplishments—even though they often surpass everyone else’s! Is it because you truly want to rule the world or is it that you simply feel superior to everyone around you? Conversely, this costume choice may reveal the lack of power you feel you have over your business or even others around you.

Vampires

Vampires are evil, scary and downright creepy.

Bottom line: If being a blood-sucking bandit is your costume of choice, this may be your way of giving yourself permission to get in touch with your dark side. Or are you becoming more aware of your own mortality? Conversely, this costume choice may reveal you want to separate yourself from others—perhaps business associates or even clients/customers—but are unsure of how to set those boundaries.

Princesses & Fairies

Princesses and fairies are whimsical, dreamy and a bit too optimistic.

Bottom line: Entrepreneurs beware as these costume choices scream the following personality traits: a wish for safety and simplicity—also known as your business may be running you instead of you running it. You have reality issues or are in deep denial. You lack financial resources.

According to Julie Mullarkey, founder of EMG, personality traits provide an insight as to how an entrepreneur achieves goals, makes decisions, communicates with employees and chooses clients or customers.

“I ask my clients to tap into their dreams and imagine what life would be like if money and time were no object,” said Mullarkey. “This exercise often helps reveal what is either holding them back from achieving new levels of success; or may help reveal what is missing in their business model or individual skill set.

Herbalife Q3 Net Sales Up 15%

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Herbalife Nutrition Ltd. (NYSE: HLF) recently reported Q3 2018 net sales of $1.2 billion, an increase of 15 percent compared to Q3 2017.

All regional net sales increased during the quarter, with the exception of South and Central America, Regionally, net sales were:

  • Asia Pacific net sales were $274.3 million, an increase of 18.8 percent
  • North America net sales were $240.0 million, an increase of 20.1 percent
  • EMEA net sales were $235.9 million, an increase of 10.3 percent
  • Mexico net sales were $121.2 million, an increase of 6.0 percent
  • China net sales were $266.5 million, an increase of 27.0 percent
  • South & Central America net sales were $104.9 million, a decrease of 10.1 percent
  • Worldwide Total $ 1,242.8 million, an increase of 14.5 percent

“Our strong sales and earnings performance during the third quarter demonstrate the global consumer demand for our nutrition products,” said Rich Goudis, CEO of Herbalife Nutrition.

To read the full Herbalife Q3 2018 financial report, click here.

James Thompson Named New Avon Chief Beauty & Brand Officer

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Avon Products, Inc. recently announced the appointment of as chief beauty and brand officer, effective November 1, 2018.

James Thompson

James Thompson

Thompson joins Avon following a 24-year career at Diageo PLC, most recently serving as chief marketing and innovation officer for Diageo North America. At Avon, he will focus on leveraging the strength of Avon’s beauty marketing and innovation to create more agile category teams that will be structured to work much more closely with Avon’s markets. He will also spearhead the rejuvenation of Avon’s brand. He will report to COO Jonathan Myers.

“Chief Beauty & Brand Officer is a strategically vital role at Avon, and we couldn’t be more pleased to have an executive of James’ caliber join us,” said Myers. “He has a well-established track record of turning around large and small brands throughout the world at both luxury and mainstream price points. We are confident that James’ breadth of experience, in-depth digital capabilities and new product marketing and innovation expertise will further deepen Avon’s connection with its consumers and representatives.”

With Thompson’s appointment, Alex Long, Avon’s current global vice president, Global Brand Marketing, will transition to global vice president, Global Commercial Marketing to drive marketing execution, brochure excellence and revenue growth management across the organization.

CBD: Elixir for an Anxious Population?

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Talk of cannabidiol (CBD) seems to be everywhere nowadays, including in direct selling circles.

It is being touted as a magical elixir in mainstream media. In January, actress Mandy Moore said she was experimenting with CBD oil to relieve the pain from wearing high heels. In July, music legend Willie Nelson introduced a line of CBD-infused coffee beans called Willie’s Remedy. And earlier this month, Dr. Sanjay Gupta gave a qualified endorsement of CBD on “The Dr. Oz Show.”

“I think there is a legitimate medicine here,” Gupta said. “We’re talking about something that could really help people.”

But it may be that CBD is just a fix for these anxious times. According to a recent The New York Times article, the defining sociological condition today, especially among millennials, is anxiety:

  • anxiety about our political dysfunction
  • anxiety about terrorism
  • anxiety about climate change
  • anxiety about student loan debt
  • anxiety about artificial intelligence taking away all the good jobs

Read more here.

Natural Health Trends Q3 Revenue Up 17%

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Natural Health Trends Corp. (NASDAQ: NHTC) today announced its financial results for the third quarter ended September 30, 2018.

Total revenue of $47.0 million increased 17 percent compared to $40.1 million in the third quarter of 2017, and decreased 8 percent compared to $50.9 million in the second quarter of 2018.

Revenue from the company’s Hong Kong operations, which represented 88 percent of total revenue, was $41.4 million, an increase of 18 percent compared to $35.0 million in the third quarter of 2017. Revenue outside of Hong Kong of $5.6 million increased 10 percent compared to $5.1 million in the third quarter of 2017.

For the year, total revenue of $150.3 million decreased 1 percent compared to $151.5 million in the first nine months of 2017.

“Despite a generally difficult trading environment, our performance in the third quarter was driven by the momentum we created since the beginning of the year,” said Chris Sharng, president of Natural Health Trends. “So far in 2018, both a rapidly depreciating Chinese yuan, down 10 percent since February, and the seasonality associated with the summer months, contributed to an 8 percent decline in our revenue from the second quarter to the third quarter this year. Without the adverse effect of the yuan devaluation, our third quarter revenue would have been flat with the second quarter. While we have no control over these conditions, I believe we have been doing a good job navigating in an increasingly difficult and unpredictable setting.”

To view the full Natural Health Trends Q3 2018 report, click here.

Avon Introduces Personalized Beauty App

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The digital tool, built in partnership with Techkon, will deliver diagnostics regardless of ethnicity, skin tone and type using a phone camera and a unique calibration card exclusively available to Avon Representatives.

Avon Products, Inc. conducted research into how mathematical-based color theory could be used to predict an individual’s make-up shade and skin-care needs and worked with Techkon to develop the technology. The app poses questions designed to identify those needs and uses the calibration card to precisely measure skin tone. The information is processed through a unique algorithm that generates personalized product recommendations.

“We’re passionate about making high-quality, high-tech innovation accessible to all of our Beauty Entrepreneurs and their customers,” said Louise Scott, Avon’s chief scientific officer. “Digital tools like this help make the personalized, trusted service of our Representatives even more meaningful. At Avon, we are putting an end to the one-size fits all approach and recognizing that women don’t just want the latest product, they want real beauty insight tailored to their individual needs—not just for foundation, but for their whole beauty color regime. Early results indicate that this technology provides a benefit that really resonates. We’re providing a solution that women want.”

This program is the latest milestone in the transformation of Avon’s digital strategy, fueling the business’ growth through enhanced interactions with Representatives and customers.

Build Trust Through Online Responsiveness

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The goal of a direct selling company’s online marketing strategy is building trust through personal relationships with customers.

The direct selling channel is based on the one-to-one interactions between independent consultants and customers. But what about the relationship between the company and the customer? What happens when negative comments appear online about a company’s products or services? And more importantly, what do you do about them to keep building consumer trust?

Customer Service

In the online world, comments and reviews are closely monitored. Millennials, the largest purchasing group, place more weight on word of mouth recommendations, and more than one-third of them prefer to wait until someone they trust has tried a new brand.

Many companies have implemented online chats so that customers can have questions answered in real time and any customer service issues can be resolved immediately. But it’s not just having that capability; it is how you use it to connect with customers. Here’s an example.

Two years ago, LinkedIn shared a hilarious chat between an Amazon customer support rep and a customer who had not received a book. (If you have not read it, click here.) While Thor and Odin (think movie Thor) roleplay was involved, the outcome went well beyond fun and a happy customer—it was the trust built between the brand and that customer as well as the instant sharing of the experience with the online community.

Does this mean you should train your reps in pop culture—Daenerys Targaryen and Jon Snow (Game of Thrones) speak or Dumbledore and Severus Snape (Harry Potter) talk? No, but making interactions more fun goes a long way in creating a lasting relationship and in helping to diffuse potentially explosive situations. Customers just want you to listen to them and help with issues.

Online Comments

Customers also want you to respond, more so than companies typically do. Uberall, Inc. recently released the results of its “Customer Review Report.” While the report focused on how shoppers evaluate brick-and-mortar store reviews online, the responses can be applied to direct selling, where storefronts are the faces of consultants.

Here are the results that might cause you to pause and reconsider your strategy for responding to online comments posted to your website or social media platforms:

Response frequency

65% of respondents believe brands should respond to every comment, whether the review is positive or negative. In addition, 18% believe they should respond only when the review is negative, while 10% feel they should never respond and 6% think they should only respond when the review is positive.

Takeaway: Have a proactive voice in conversations. Shoppers aren’t just looking for positive online reviews, they’re actually evaluating the quality of the customer experience based on online responsiveness.

Personal responses

More than 3 out of 4 respondents think responses should be personal. When asked how personalized a response should be to a customer review, 78% said that there should be some personalization. Forty-nine percent said responses should be “somewhat personalized,” while 29% said “very personalized.” Just 13% said “not very personalized” and 9% said “not personalized.”

Takeaway: Individualization is required to show that the brand cares about the customer. This is why platforms like Google and Yelp insist that businesses post personal responses versus generic, meaningless ones.

Responsiveness

More than 86% are likely to shop at a store that responds to reviews. Of that group, 47% said “somewhat more likely,” while 39% said “more likely.” Only 8% said “somewhat less likely” while 6% said “not likely.”

Takeaway: Consumers prefer businesses who care about them, and it shouldn’t be a surprise that personal responses to reviews show just that to consumers who research a business. Responding to reviews is great for brand perception, which leads to more new customers and repeat business from existing ones.

Importance of reviews

Nearly 75% think online reviews are important. When asked about the importance of online customer reviews for a store, 74% cited them as either “moderately important” (40%) or “very important” (34%). Just 20% said “slightly important” and 6% said they were “not important.”

Takeaway: Customer reviews are important, period. Three-quarters of those surveyed said they were either very or fairly influential. With so many options out there, stores live or die based on their ratings.

You don’t have to bring pop culture into your interactions with customers but be aware that making customer experiences fun and responding on a regular basis with personalization will help build trust and, ultimately, bring new customers.

CBD Symposium to Feature Youngevity CEO Steve Wallach

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Youngevity CEO Steve Wallach will be a featured speaker at upcoming CBD Symposium, hosted by SUCCESS Partners and Direct Selling News.

“Unquestionably, CBD has become the hottest topic in the direct-selling channel, and this event presents a prime opportunity for sharing information about CBD and how best to utilize the direct-selling business model in offering this transformative product to the public,” said Wallach.

It has been estimated that direct-selling companies will sell $300 million in CBD-related products in 2018, which would make direct-selling the largest distribution channel for this rapidly growing product sector. Youngevity is well-positioned to capitalize on the expected CBD direct-selling boom. The company recently launched Hemp FX™, a line of hemp-derived CBD products that includes three proprietary formulas that feature Youngevity’s hemp-derived, phytocannabinoid-rich, full-spectrum, organically grown CBD oil, and two tablet-based CBD products in the HempFX™ Hydration™ category.

“Hemp FX is an ideal representation of our plant-based approach to product development,” said Wallach. “These select products are being offered in this initial launch, and we expect the Hemp FX line will continue to grow, with more products becoming available in the near.”

The symposium will take place Nov. 6 in Dallas, Texas.

ORGANO Expands into South Africa

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Vancouver, British Columbia-based ORGANO recently announced it has formally expanded into South Africa.

The new market opened on Oct. 6. The company’s headquarters and logistics hub are located in Johannesburg.

“Our opening in South Africa represents another achievement in expanding ORGANO throughout the African continent and is an important component of our strategic growth plan for the EMEA region,” said ORGANO Managing Director of Global Strategy Leonard Chin.

ORGANO will offer a lineup of beverages and specialty nutritional products in South Africa.

“This latest entry into Africa represents a long-term commitment to the people of Africa through our Continental Africa Plan, our broader regional growth strategy for EMEA and our global plan to make ORGANO products more broadly available around the world,” said ORGANO Chief Operating Officer Norm Perrett.

USANA Q3 Net Sales Up 13.4%; Tupperware Down 10%

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USANA Health Sciences, Inc. (NYSE: USNA) and Tupperware (NYSE: TUP) have announced financial results for the third quarter of 2018.

USANA

USANA net sales were $296.8 million, compared with $261.8 million in the prior-year period, a 13.4 percent increase year-over-year. The company’s skin and personal care product category contributed approximately $9.5 million in incremental sales for the quarter. The company’s total number of active customers increased 9.2 percent year-over-year to 615,000.

Net sales in the Asia Pacific region increased by 20.2 percent to $239.6 million for the third quarter of 2018. The total number of active customers in the Asia Pacific region increased by 13.9 percent year-over-year. Net sales in the Americas and Europe region for the third quarter of 2018 decreased by 8.5 percent to $57.2 million, and active customers in this region declined 5.1 percent.

“We continue to see strong momentum in most of our regions, which is reflected in our double-digit third quarter growth,” said CEO Kevin Guest. “Our growth strategies and investments into the business are producing results and our team remains committed to providing the best overall customer experience at USANA.”

To view the full USANA Q3 2018 report, click here.

Tupperware

Tupperware net sales were $485.8 million, down 10 percent (2% local currency), including a 3-point impact from the 2017 closure of Beauticontrol and the combination of the NaturCare and Tupperware businesses in Japan. Emerging markets, accounting for 72 percent of sales, were down 9 percent (up 2% local currency). Established market sales decreased 13 percent (11% local currency), including a 9-point negative impact from the Beauticontrol closure and combination of units in Japan.

In Europe, sales were up 1 percent (6% local currency). In Asia Pacific, sales were down 8 percent (4% local currency). North America sales were down 11 percent (9% local currency and South America sales were down 24 percent (up 1% local currency).

“We are pleased to have achieved a return to growth in local currency sales, adjusted for the Beauticontrol closure and our actions in Japan,” said Tricia Stitzel, president and chief executive officer. “During the quarter we saw great progress in many of our initiatives to position Tupperware with more engagement, more access and more relevance. We have a fresh and invigorated leadership team that is focused on improving the fundamentals of our business and executing our Global Growth Strategy initiatives to drive change and deliver enhanced value for our shareholders.”

To view the full Tupperware Q3 2018 report, click here.

Paul Jarvis Named New Seldia Chairman

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Seldia, the European direct selling association, recently announced that industry veteran Paul Jarvis has been elected chairman.

Originally a banker, Jarvis became involved in direct sales in 1995 when he supported the launch of a direct sales company in Russia. In 2012, he participated in the launch of Organo Gold, and since 2016 has served as COO of the Juice Plus Company, leading its EMEA strategy.

As Seldia chairman, Jarvis will focus on working with the European Commission and other relevant EU stakeholders to ensure a favorable legislative environment for the sector; promoting the industry to a younger generation as a viable Uberesque opportunity; and harmonizing the national direct selling associations and modernizing their functioning towards digital technologies.

Jarvis succeeds Thomas Stoffmehl, who helped Seldia develop new communication tools and helped to strengthen the internal structure of the association.