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Third Annual Isagenix Global Give Back Day Unites Customers and Employees

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Photo: Participants cleaned up litter in a community park in Bristol, England; Australia participants cleaned up plastic and microplastic litter along the coastline.

Isagenix International, the Gilbert-Ariz.-based global health and wellness company, recently united customers and employees during its third annual Global Give Back Day.

“It’s inspiring to see our customers and employees embrace this annual initiative and reflect our company’s core value of contribution,” said Erik Coover, Isagenix senior vice president of Global Field Development and Culture.“

This year’s activities took place in markets Isagenix serves, including the U.S., Australia, New Zealand, the U.K., Colombia, Singapore, Taiwan and Hong Kong. Among the Global Give Back Day participants were independent distributors who share the company’s health and wellness solutions and members of START, a popular Isagenix affinity group for customers ages 18 to 35 striving to lead extraordinary lives while helping others do the same.

For the special day’s activities in the U.S., employees from the company’s headquarters and START members visited Feed My Starving Children and packed 32,400 meals that will feed 88 children in the Philippines for a year. Isagenix donated to cover the cost of the meals packed. The company also launched a buy one, give one promotion to provide great nutrition to those in need. The 2,777 donated boxes had a retail value of approximately $122,000.

Highlights of Global Give Back Day activities in other Isagenix markets include:

  • Australia and New Zealand: Australia participants cleaned up plastic and microplastic litter along the coastline, while crews in New Zealand cleaned up beaches off their local coasts.
  • U.K.: Participants cleaned up litter in a community park in Bristol, England.
  • Colombia: Participants visited Fundación Proyecto Unión, a foundation that supports homeless, abandoned children who have health issues. Volunteers played with the children and provided donations including books, easels, toys, and clothes.
  • Singapore: Participants teamed up with a local nonprofit, Willing Hearts, to prepare, pack, and distribute meals to over 5,000 beneficiaries in the community including the elderly, the disabled, poverty-stricken families, and migrant workers.
  • Taiwan and Hong Kong: Corporate teams organized mountain and beach cleanups along with collecting donations for the Make-A-Wish® foundation.

Isagenix customers also engaged in small acts of kindness and service on their own, from picking up trash in their neighborhoods with their kids to inviting an elderly couple over for dinner.

“As our Global Give Back Day initiative illustrates, there are many ways to make a difference, whether you serve alongside others or on your own,” Coover said. “I hope this initiative encourages everyone to explore how they can make an impact on the world around them.”

Walmart, Amazon Affecting Direct Sellers’ Wellness Business?

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Last month, in its annual “Growth and Outlook Report,” the U.S. Direct Selling Association reported that retail sales of $34.9 billion for 2017 were down 1.8 percent from 2016.

The wellness product category, which has been the channel’s strongest category for several years—and which accounted for 33.8 percent of all sales last year—also saw a slight decline. This marks the first time since 2010 that wellness sales have decreased year over year.

Yet, it seems that wellness products are doing well overall. A report released last week by Shelton, Conn.-based firm TABS Analytics reported that vitamin, mineral and nutritional supplement (VMS) sales grew by an estimated $500 million, or 3 percent, during the past year. The firm’s 11th Vitamins, Minerals and Supplements Study noted that growth in the $14 billion VMS market was fueled by the addition of new hair/skin/nail and melatonin offerings and an increasing number of consumers who purchased products occasionally. The growth was also driven by strong growth at both Amazon and Walmart—which could be having a huge effect on the direct selling channel’s wellness business.

“Walmart continues to hold its leadership position in VMS sales at its brick and mortar stores, and it is showing online growth while Amazon remains at the top and continues to extend is lead in the eCommerce space,” said Dr. Kurt Jetta, president and founder of TABS Analytics. “These trends counter conventional wisdom that online sales are coming at the expense of purchases in physical stores. These two types of outlets do not need to be mutually exclusive; rather they both can continue to grow sales with the right approach to marketing and product mix.”

Key findings from the study included:

  • VMS sales reach new heights: This category continues to grow gradually, with penetration reaching 78 percent in 2018, its highest level in the history of TABS’s survey. Purchasing by heavy buyers (those who purchase 3+ types of products), which typically drive penetration, were flat in 2018. Most of the growth this year is attributable to a 2 percent increase in occasional purchasers (1-2 product types). Purchasing dropped among women ages 55+, who have tended to drive sales in the VMS market. This 9-point drop was offset by growth in purchasing by men, both younger (ages 18-54) and those 55+.
  • Walmart was the clear winner among brick and mortar outlets, with 39 percent of survey respondents indicating that they purchased VMS products there, up 7 percentage points from last year. Food also saw gains, up 3 percentage points to 18 percent and the other major brick and mortar outlets (including major specialty stores like GNC and Vitamin Shoppe) remained stable. Losers included Club (Costco and Sam’s) and the natural food channel.
  • Amazon remains at the top in eCommerce. While Walmart grows its online VMS business consistently, Amazon grew from a flat base in 2017 as 10 percent of survey respondents noted they made purchases through the online retailer. Another bright spot was Puritan’s Pride, showing solid performance as #3 eCommerce retailer as it effectively converted catalog customers to the online channel.

TABS Analytics’ VMS study was conducted in April 2018 by Caravan, part of ORC International, and was developed to examine trends regarding what types of vitamins and nutritional supplements are purchased, how frequently they’re purchased and at which outlets they are purchased. The survey panel included 1,000 geographically and demographically dispersed consumers. To view the report, click here.

Throughout 2018, TABS Analytics is conducting six studies across the consumer-packaged goods industry including: baby care, vitamins, wine & liquor, candy, food and beverage and cosmetics. It will be interesting to see how cosmetics sales relate to direct selling’s numbers, which also slightly declined in 2017.

JRJR Networks Files for Chapter 11 Bankruptcy

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According to a report by the Newark Advocate, Longaberger parent company JRjr33, also known as CVSL and JRJR Networks, filed for Chapter 11 bankruptcy last Friday in U.S. Bankruptcy Court for the Northern District of Texas.

JRjr33 representatives failed to show for a court-ordered conference Friday in Franklin County Common Pleas Court, in Columbus. The conference, a judgment debtor exam, was scheduled for the company to show its assets to former Longaberger CEO Tami Longaberger, who won a $2.1 million judgment against the company on Feb. 12.

Judge Mark Serrott had scheduled a show-cause hearing for July 25, when JRjr33 would be required to show why it should not be held in contempt of court for its failure to attend the conference. But, after the company filed for bankruptcy, the judge canceled the show-case hearing, according to Vanessa Griffin, staff attorney for the judge.

Steven Tigges, attorney for Tami Longaberger, had planned to file a motion asking for the contempt of court charge, freezing of company assets and warrants for the arrest JRjr33 representatives. The bankruptcy filing changed those plans.

“We just have to work our way through the process,” Tigges said. “I’m hoping (Tami Longaberger) will see the judgment paid. The bankruptcy court is well-equipped to sort through the financial affairs of the company. We’ll just have to wait and see.”

In the bankruptcy filing, the company states it has between 100 and 199 creditors, and between $1 million and $10 million in assets and in liabilities.

The $2.1 million judgment for Tami Longaberger includes $1.275 million in salary, $608,642 in deferred salary and $208,986 in business expenses. The judgment did not include another $1 million in personal loans she made to the company. That case is still pending.

Tami’s sister, Rachel Longaberger Stukey, a former Longaberger Co. shareholder and officer, and former Longaberger Foundation president, also prevailed in a lawsuit against the company in September, when a Franklin County Common Pleas Court judge ruled Longaberger Co. owed Stukey $2.7 million.

Left unresolved was whether JRjr33 was also responsible for the payments to Stukey. A settlement was reached, but the details were not disclosed.

Longaberger Co. also owed about $850,000 in delinquent property taxes on its basket-shaped former headquarters in Newark. The sale of the building last year paid off the delinquent taxes, with 75 percent going to the city of Newark and 25 percent to Licking Valley Schools.

Jamberry Announces Foreclosure

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UPDATE…

Lindon, Utah-based Jamberry yesterday announced that the company is in foreclosure.

In a communication to consultants, the company stated, “We’re so grateful to each of you for your patience during this transitional time for Jamberry. We regret to inform you that any product, gift cards, swag, marketing or event purchases made prior to 11:59 p.m. MT on June 28, 2018, are ineligible for refund from Jamberry.”

The communication also stated that due to the entity’s present status, it was unable to fulfill a contract with the Gaylord Resort for International Conference 2018 in Nashville, Tenn., and that 2019 Incentive Trips to Costa Rica and Thailand were cancelled.

“To secure a future for you and your businesses moving forward, M.Network has agreed to purchase certain Jamberry assets, and they’ll be communicating with you soon. Thank you for all you’ve meant to Jamberry. We wish you success,” said the company.

Eight years ago sisters Lyndsey Ekstrom, Christy Hepworth and Keri Evans launched what would become a multimillion-dollar enterprise, Jamberry Nails in the direct selling channel. The company, which offered nailwraps, gel enamel, beauty and skin care, operated across the U.S. and in five additional countries: Australia, New Zealand, the United Kingdom, Canada and Mexico.

Arbonne Announces New CEO Jean-David Schwartz

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Photo: Arbonne International CEO Jean-David Schwartz

Arbonne International, LLC, the Irvine, Calif.-based direct seller of personal care and wellness products, today introduced a new chief executive officer: Jean-David Schwartz.

Former CEO Kay Zanotti decided to retire after nine years to spend more time with her family. During her tenure, Zanotti led Arbonne through some of its most successful years since the company was founded in 1980.

Schwartz comes to Arbonne from parent company Groupe Rocher, which acquired Arbonne in March 2018. Schwartz is a seasoned direct selling executive who brings more than 15 years of experience in the industry, most recently as the CEO of Yves Rocher North America. Schwartz’ well-rounded business background includes extensive multicultural, international experience, including working in Africa, Spain, Canada and the U.S.

“I was pleased to be the key liaison during the Groupe Rocher acquisition of Arbonne earlier this year,” said Schwartz. “All of us at Groupe Rocher have been very impressed with the amazing Arbonne culture and community. I am now excited to lead a new journey at Arbonne, to work to evolve and expand the brand, and ensure that the next stage is the best one yet. I am confident that we can turn the steady growth into truly extraordinary results. We want to focus on sharing Arbonne’s mission of healthy living inside and out in bigger and broader ways than ever before.”

Along with Schwartz, two other key Groupe Rocher executives are joining Arbonne full-time: Astrid Van Ruymbeke, chief fnancial officer, and Vincent Taglioni, vice president of Operations. Both Van Ruymbeke and Taglioni have been with Groupe Rocher for more than a decade.

These two executive appointments follow the retirement of Arbonne’s previous CFO, Gretchen Price and the resignation of Arbonne’s previous COO, Glenn Klages. There are no plans to move Arbonne’s corporate headquarters in Irvine.

LuLaRoe, Evel Knievel Family Announce 2-Year Apparel Licensing Partnership

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The Evel Knievel family brand and LuLaRoe, one of the country’s leading family-owned social retailers, today announced a two-year apparel licensing partnership that kicks off this summer with select pieces from the LuLaRoe American Dreams Collection.

This vintage Americana-inspired collection pays tribute to the ’60s and ’70s, with a special ode to Knievel, the American icon whose bravery, risk-taking spirit, and love for family adventure is the Americana age personified.

“We are so excited to partner with the Evel Knievel family and pay tribute to his legacy,” said Mark Stidham, CEO and co-founder of LuLaRoe. “He was such an important part of our country’s history and his spirit continues to influence future generations. He is a true example of what it takes to achieve the American Dream.”

According to Stidham, the partnership is one of the first steps in evolving the LuLaRoe brand to serve Independent Fashion Retailers and their Customers with collaborations that pay tribute to great dads and great role models.

“Evel Knievel is a hero in our modern-day culture—the quintessential risk taker,” said Kelly Knievel. “If you’re an entrepreneur or adventurist, get out of your comfort zone. You don’t have to be an outrageous daredevil but society could learn a lot from Evel Knievel: take intelligent risks, learn from your mistakes, and move onto the next jump—Entrepreneurship 101. Nobody is going to give you anything or recognize you for lack of results.”

LuLaRoe x Evel Knievel (PRNewsfoto/LuLaRoe)

LuLaRoe x Evel Knievel (PRNewsfoto/LuLaRoe)

Avon Accelerates Digital Transformation Plans: Launches Shoppable Brochure

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Avon Products, Inc. has announced it has reached a series of milestones in its plans to transform the digital capabilities of its Representatives and improve interactions with consumers.

The London-based beauty company’s global digital platforms and experience team has launched a fully digitized, mobile-enabled, e-interactive brochure that allows Avon Representatives to connect quickly and effectively with their customers.

Avon Representatives can create an e-enabled personalized shopping cart that can be shared via WhatsApp and Facebook messenger, sending the latest trends and products direct to their mobile. The brochure includes in-built and real-time analytics for future enhancement and customization, making it easier to track best-selling products, individual preferences, and respond to Avon Representative and customer needs.

The instant messaging brochure is available globally, across six clusters in 12 countries, including Brazil, Argentina, Mexico, Russia and Turkey, with three more clusters due to launch soon. On launch it received more than 500,000 visitors, with positive feedback from across Avon’s network of beauty entrepreneurs.

“Digitization is at the heart of our strategy as we build a new, modern and relevant Avon that is both high-touch and high-tech,” said CEO Jan Zijderveld “We are working intensely to build the right tools to support our 6 million strong network of beauty entrepreneurs to help them provide a personal service to their customers that is underpinned by strong digital capability. This pilot is off to a promising start with huge potential as we implement more broadly.”

Avon also announced it is investing in growth with a new Global Sales organization that will partner with its markets, focusing on enhancing the Representative experience and service model evolution, Representative segmentation, field sales excellence, commercial optimization and entry strategies for new territories. Data-driven insights will be used to tailor the training and incentives that fuel Avon’s Representatives, recognizing that improving earnings potential, expanding learning opportunities and scaling best practice is fundamental to achieving the business’ targets and its competitiveness.

Richard Pinnock is transitioning from his current role as group vice president for APAC to lead the new team as group vice president of Global Sales. Pinnock’s team will consist of a targeted group of leading experts to be deployed directly to markets for immediate impact.

Avon Launches “Make It Happen: Powered by Avon” Podcast Series

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Photo: Avon Representatives recording the “Make it Happen: Powered by Avon” podcast series.  Pictured from left to right: Linda Montavo, Avon Representative from Woodbridge, VA; Evy deAngelis, Executive Director of Sales Development at Avon; Donna Reid-Mitchell, Avon Representative from Dallas. TX and Orenthia Ricketts, Avon Representative from Newark, NJ.

New York-based social selling company Avon is bringing together top-selling Representatives and industry insiders to share stories and inspirational advice through its first-ever podcast series Make It Happen: Powered by Avon.

Avon says they podcast was created with the spirit of entrepreneurism. The new audio series is hosted by Avon’s Executive Director of Sales Development Evy deAngelis and features discussions with Avon Representatives and powerful business minds and industry power players, such as beauty industry social influencer Lara Eurdolian and social selling strategist Scott Kramer.

Episodes premiere every Monday. Currently available episodes include:

  • “Shifting Your Mindset: Thinking Like a Boss” – Leading beauty bosses and Avon Representatives discuss their own paths to success, creating connections and embracing a “boss-life” mindset.
  • “Turning Feeds into Leads: Leveraging the Power of Social Media to Promote Your Business” – Scott Kramer, creative professional and CEO of social-selling agency Multibrain, shares how businesses can push the boundaries of what’s possible with social media by turning feeds into leads.

“We wanted to give our Representatives and other trailblazers a platform to spotlight their own journeys,” said deAngelis. “We are thrilled to share their motivating, candid stories of achieving success on their own terms. Every episode will inspire our listeners to break down barriers and take bold steps forward in their own lives.”

All episodes of Make It Happen: Powered by Avon are produced by Hangar Studios and are approximately 30 minutes in length. They will be released individually on Avon.com/Podcast and iTunes. Beauty bosses and entrepreneurs are encouraged to join the conversation.

Australia DSA Announces 2018 Industry Awards Winners

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Photo: Sydney Harbour, Australia.

Direct Selling Australia, the country’s leading representative body for retail direct selling, recently announced the winners of the 2018 DSA Industry Awards during its 51st Annual Conference – Experience It.

The awards, which were presented by Australian television personality and model Nicky Buckley, recognized the achievements of member companies transforming the lives of those seeking flexible and meaningful ways to earn an income.

The DSA Industry Awards categories were selected to recognize innovation, excellence, creativity and partnership among the membership, and included the Campaigner, the Disruptor, the Product Innovator, the Developer, the Partner and the Giver.

This year’s winners were:

  • Disruptor Award: Nu Skin
  • Campaigner Award: Herbalife
  • Developer award: ENJO
  • Product Innovator Award: Amway
  • Partner Award: FDM
  • Giver Award: Lorraine Lea

“I am impressed by the level of innovation and creativity demonstrated by the 2018 DSA Industry Awards winners, said DSA Executive Director Gillian Stapleton. “On behalf of the Association, I would like to congratulate this year’s winners on their outstanding achievement.”

Each award winner received a bespoke artwork, painted by performance and speed painter Sarah Rowan Dahl during the conference’s Celebratory Dinner, where the awards were announced.

The DSA Industry Awards are sponsored by valued DSA supplier members Tourism New Zealand, Russell Kennedy Lawyers, Fenton Green and IntegraPay.

LifeVantage Launches in Taiwan

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Photo: Financial district in Taipei, Taiwan

Sandy, Utah-based LifeVantage Corporation announced today that it has further expanded its footprint in Asia by opening for business in Taiwan. The company formally kicked off operations in Taiwan in conjunction with a successful market launch event on June 24 in Taipei.

“We are excited about Taiwan’s potential and are committed to the long-term success of this market as part of our strategy to achieve lasting and significant growth in Greater China,” said LifeVantage CEO Darren Jensen.

LifeVantage will initially offer its complete TrueScience® Beauty System—the company’s popular line of Nrf2-enhanced skin care products—with its flagship Protandim Nrf2 Synergizer® anticipated to follow in the future. The TrueScience Beauty System consists of four products: TrueScience® Facial Cleanser, Perfecting Lotion, Eye Serum and Anti-Aging Cream.

“It is both gratifying and rewarding to us as a company that the Taiwanese people will have access to our scientifically validated products and entrepreneurial vehicle that are changing lives all over the world,” said LifeVantage Chief Sales Officer Justin Rose.

The Taiwan launch represents an increasingly concentrated effort on behalf of LifeVantage to make its products available in markets across the globe. In addition to a formal presence in a dozen markets in North America, Europe, Australia and Asia, LifeVantage products are also available to customers on a not-for-resale basis in seven additional countries, including New Zealand and Dominican Republic, as part of the Global Customer Program that was launched in April.

LifeVantage, founded in 2003, is a pioneer in Nutrigenomics, a new science dedicated to biohacking the human aging code. The company is engaged in the identification, research, development and distribution of advanced nutraceutical dietary supplements and skin care products.

Princess House Launches E-Commerce as New Revenue Stream for Consultants

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Photo: Connie Tang, president and CEO of Princess House

Princess House, the Taunton, Mass.-based direct seller of exclusive cookware, food storage and home and entertainment products to support a healthy lifestyle, is celebrating 55 years of direct selling success with a brand transformation that introduces online product availability for the first time.

The 24/7 sales channel creates a new revenue stream for its 25,000-plus independent consultants while addressing increased consumer demand for online purchasing.

“We are rejuvenating and transforming our brand in order to meet the needs of a younger generation that expects the ability to purchase products online,” said Connie Tang, president and CEO of Princess House. “Expanding into the digital space provides our independent consultants with another revenue stream while we continue our commitment to a traditional in-person direct sales model.”

The Princess House e-commerce website is designed to be friendly and accessible, offering a content-rich user experience featuring products, recipes, how-to videos and photographed serving suggestions. The platform leverages the strength of the company’s healthy cooking demonstrations and one-on-one sales initiatives with a built-in opportunity for consultants to interact with online customers to help them in the purchase process or add them to an open party.

“As a company, we are committing to comprehensive training, knowledge and insights for consultants to excite them about embracing the potential of e-commerce,” said Tang. “We will guide them through this new business experience to demonstrate the power of online sales to grow their own business.”

Princess House boasts very high web traffic with millions of visitors annually who find the site organically to discover the brand and its products. The new e-commerce site is designed to be both a destination and a sales tool. In addition to offering products, the site will tell the Princess House story and drive customers to build relationships with independent consultants in their local area.

“Our goal is to encourage consumers to interact, engage and come back to our consultant’s or corporate website by offering a content-rich experience,” said Victoria Vilbrandt, vice president of Marketing, Strategy and Solutions. “We are using e-commerce to maximize business opportunities by converting site visitors into customers and encouraging them to forge relationships with consultants to continue the conversation.”

All Princess House products will be available online. The company will continue its investment in promotions and offers that will be exclusively available through consultant demonstrations.

Supreme Court’s Sales Tax Ruling: A Positive for Direct Selling?

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Last Thursday, the U.S. Supreme Court overturned a 1992 ruling that allowed online retailers to skirt sales tax collection responsibilities in states where they did not have a physical presence. The decision, in South Dakota v. Wayfair Inc., states that internet retailers can now be required to collect state sales tax in online transactions.

With the new ruling, the businesses most will likely to be hurt are the millions of small-business owners who sell on marketplaces such as Amazon and eBay. The new decision means that those millions of small businesses may now need to collect and remit sales taxes in the 45 states that have them. That could be an expensive and time-consuming task, especially if new rules differ between states.

“Trying to follow all the thousands of laws of tax jurisdictions across the country would put us out of business,” said Cyndi Zlotow, who sells about $250,000 annually of apparel and other goods on eBay, Amazon and Etsy from near Chicago. “That is all I would do all day.”

The court disagreed that the new ruling would unfairly affect small- and mid-sized business owners. Justice Anthony Kennedy, writing of the majority opinion, remarked that “there is nothing unfair about requiring companies…to bear an equal share of the burden of tax collection.”

The old rule—established by the court in Quill Corporation v. North Dakota—enabled online commerce to boom and helped drive an explosion of small businesses. The Quill decision helped pave the way for the growth of online retail by letting companies sell nationwide without navigating the complex patchwork of state and local tax codes.

House Judiciary Committee members called Thursday’s ruling a “nightmare” for American businesses and said small online sellers would be subject to audits by “over 10,000 taxing jurisdictions across the U.S. in which they have no say at the ballot box or representation in state and local government.” They added that the ruling will hurt efforts to keep compliance burdens to a minimum for small businesses. “Today’s decision will stifle online commerce, close businesses and ultimately harm consumers.”

The new ruling will have a smaller effect on big brick-and-mortar chains like Walmart and Target, which have so many stores they already are collecting and remitting sales taxes on many online purchases. And Amazon, the largest U.S. online retailer, as of last year already collects sales tax on products it sells directly in every state that has one. However, the ruling could affect a range of online retailers like Overstock.com and Wayfair because internet-only retailers have had to collect and remit sales tax only if they had a warehouse, corporate office or other physical presence in that state.

What of Small Business Owners?

The court’s decision could have a chilling effect on the millions of small independently owned businesses—which have fewer resources—that sell online. Those businesses largely rely on marketplaces like Amazon and eBay, which don’t collect sales tax for most of these merchants. The ruling didn’t change that.

Amazon recently said that wares are sold on its marketplace by more than one million small businesses, defined as having less than $7.5 million in annual revenue based on a U.S. Small Business Administration guideline. And eBay says it has six million U.S. sellers, while online crafts marketplace Etsy claims some two million sellers worldwide.

It isn’t exactly clear how new state laws might take shape, and what type of burden they may place on sellers. South Dakota’s law—which was the one presented before the high court—allows exemptions for small businesses that had fewer than 200 transactions or $100,000 in sales in the state. The court flagged that was one of the reasons for its decision.

Some states could follow Washington, Pennsylvania, Oklahoma and Alabama, all of which have passed legislation to mandate that marketplaces collect taxes on behalf of their sellers. Meanwhile, Amazon, eBay and Etsy have been pushing Congress to pass a bill that would standardize the rules across states. Both Etsy and eBay reiterated Thursday they would continue to push for that solution.

How will the new ruling affect direct selling companies? MLM Attorney Kevin Thompson of Thompson Burton PLLC, believes the Supreme Court decision is a positive for the channel.

“The vast majority of our clients are already collecting and remitting sales taxes,” said Thompson. “We have always assumed that state jurisdiction is triggered when there are salespeople present, regardless if the home office is located in the state. I believe the decision will put pressure on third-party sellers to get into compliance, which will be extremely difficult. It will make the direct selling channel more attractive for those sellers because the majority of companies in our industry automate the sales tax function.”

To read the Supreme Court decision, click here.