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NBC Features Living Goods, Avon Opportunities in Africa

June 29, 2013 by DSN Staff Leave a Comment

Living Goods

Avon

For the past five years, Living Goods has been using direct selling to advance health and entrepreneurship in Uganda. Chuck Slaughter, Living Goods Founder and CEO, first developed his direct sales savvy as an Avon distributor. Noting the sales volume Avon generates through selling non-vital products, Slaughter saw an untapped opportunity to apply the model to a category of products people urgently need—life-saving drugs.

In a recent interview with NBC, Slaughter says that when he dug deeper into the history of Avon, he discovered its roots are not so very different from what his team is working to accomplish in the developing world. Like Living Goods, Avon began with women in rural communities bound by tight social connections, who needed a source of income.

However, Living Goods’ micro-entrepreneurs have several advantages over the original Avon Lady. “We’re in this really compelling time now,” Slaughter said, “where the combination of direct selling models like Avon, microfinance, and the emergence of mobile technology is making possible a whole new generation of social entrepreneurs who can address some of these massive social problems in an incredibly efficient, sustainable way.”

View the entire segment from NBC.

Filed Under: Daily News

UK DSA Reports One-Third Jump in Young Direct Sellers

June 28, 2013 by DSN Staff Leave a Comment

The UK Direct Selling Association (UK DSA) released new figures today revealing that the number of direct sellers under 25 increased by nearly a third (29 percent) in 2012. At 75,000-strong, the under-25 segment now represents 19 percent of all UK direct sellers.

Lynda Mills, Deputy Director at UK DSA, identifies several factors that make direct selling appealing to young people. Direct sales offers fundamental business experience—experience that has proven increasingly difficult to obtain in a tough jobs market. It also appeals to the 30 percent of young people (according to a recent Prince’s Trust study) who say they anticipate being self-employed in the future. Few startup opportunities are as relatively simple and potentially profitable as direct selling.

For others, the pressures of student debt coupled with scant employment options have prompted them to think outside the 9-to-5 box. “The increase in tuition fees and failure of the traditional jobs market have frequently led young people to consider direct selling, and many are now making a real success from the industry,” Mills said. And these young people bring their own style to traditional direct selling methods. “Under 25s are the new generation in direct selling and are bringing with them new tools and technologies like smartphones and social media,” Mills notes.

Read more on direct selling trends among the under-25 population.

Filed Under: Daily News

WFDSA: 2012 Direct Selling Research Released

June 28, 2013 by DSN Staff Leave a Comment

WFDSA


The World Federation of Direct Selling Associations (WFDSA) and the U.S. Direct Selling Association (U.S. DSA) held a joint press conference on June 10 to announce 2012 Direct Selling business results.

The press conference was held as part of the U.S. DSA Annual Meeting, at the JW Marriott Desert Ridge Resort & Spa in Phoenix. Video of the conference and the 2012 United States Direct Selling Fact Sheet are now available on the U.S. DSA website, www.dsa.org.

On June 24, WFDSA published the following 2012 business reports, based on an annual survey of 60 Direct Selling Associations worldwide and their member companies, as well as secondary research. For more information, visit www.wfdsa.org.

  • Global Statistical Report of Retail Sales and Sellers – 2012
  • Sales by Product Category – 2012
  • Sales by Sales Method – 2012

The reports will also be published by SELDIA, the European Direct Selling Association. Visit the SELDIA website at www.seldia.org, for more information.

Globally, direct selling research is a highly collaborative effort, managed by the WFDSA Global Research Committee and the U.S. DSA Industry Research Committee. As well, many additional research initiatives are managed by local DSAs. Direct selling research is used by direct selling associations for media and government relations, and by member companies for benchmarking and planning purposes.

Filed Under: Feature Articles

Herbalife Promotes Brand to Music Community

June 27, 2013 by DSN Staff Leave a Comment

Herbalife


Earlier this year, Los Angeles-based Herbalife expanded its outreach to Latin consumers as the first-ever official nutrition sponsor of the Billboard Latin Music Conference and Awards. Billboard spoke to Ibi Fleming, Senior Vice President and Managing Director at Herbalife North America, about the company’s entry into the music scene.

Herbalife has garnered attention for its prominent sports sponsorships, but the company also sees music as a natural fit. “Although most people associate Herbalife with athletes, the reality is our products fit everybody,” Fleming said. In its sponsorship capacity, Herbalife provided protein bars, hydration and energy drinks to conference attendees, speakers and artists.

The company’s personalized health products have already proved popular among Latinos, who represent 60 percent of Herbalife’s business. According to Fleming, Herbalife has made a concentrated effort to customize its business opportunity for the Latin consumer. “We don’t just translate our information, for example. We have literature in Spanish and it’s catered to the Spanish-speaking community,” Fleming noted. Herbalife also hosts 10,000 to 15,000 people at an annual event for the company’s Latin sellers, where the line-up includes prominent music acts.

Herbalife saw 18 percent growth last year, and Fleming says the 33-year-old company is once again experiencing double-digit growth in the U.S. He identifies one key to Herbalife’s success: “It really boils down to our products.”

Check out Billboard’s full conversation with Ibi Fleming.

Filed Under: Daily News

Stella & Dot’s Success through Innovation

June 26, 2013 by DSN Staff Leave a Comment

Stella & Dot Forbes

In his book The Lean Startup, author Eric Ries introduced readers to “the pivot,” a term he uses to describe “the idea that successful startups change directions but stay grounded in what they’ve learned. They keep one foot in the past and place one foot in a new possible future.”

In his piece today on Forbes.com, Dan Gross, Vice President at Encore Consumer Capital, identifies four brands that have executed the pivot in the realm of consumer products—with extraordinary results. The tagline to Ries’ book reads: “How today’s entrepreneurs use continuous innovation to create radically successful businesses.” The entrepreneurs Gross identifies have achieved radical success by recognizing that consumer tastes change, and the most successful businesses keep a finger on the pulse of what consumers will want in the future.

One of Gross’ entrepreneurs is Stella & Dot CEO Jessica Herrin, who founded Luxe Jewels—the brand that would become Stella & Dot—in 2004. Luxe Jewels launched as a party plan company offering DIY jewelry kits to women. The brand reached $550,000 in 2005, but Herrin realized the DIY kits did not afford the kind of flexibility and profitability that appeals to busy mothers seeking a job opportunity. Herrin led the company in its pivot to become Stella & Dot, whose independent Stylists sold its chic but affordable jewelry to the tune of $175 million in sales in 2011, rocketing from just $4 million in 2008.

Gross also highlights KIND nutrition bars, Udi’s gluten-free foods, and popchips’ non-fried, non-baked twist on traditional rice cakes. Each business owes its current success, and perhaps even its existence, to the transformative vision of entrepreneurs willing to risk a change for the better.

Read more on “Pivoting, Consumer Products Style” from Forbes.

Filed Under: Daily News

DSA Releases Annual Industry Report

June 25, 2013 by DSN Staff Leave a Comment

DSA


At its 2013 Annual Meeting, the U.S. Direct Selling Association (DSA) released the results of its Annual Growth & Outlook Survey. The survey found that U.S. direct sales totaled $31.6 billion in 2012, up 5.9 percent from $29.87 billion in 2011. Here are a few highlights from the report:

  • U.S. direct sales market grew at a faster pace than the overall economy, which saw only a 4.0 percent increase in gross domestic product (GDP).
  • In 2012, the number of people engaged in direct selling rose to 15.9 million from 15.6 million in 2011.

A considerable uptick in the size of the industry’s salesforce occurred in 2009, largely in response to the economic recession. Over the past two years, that trend corrected itself as the number of salespeople dropped incrementally; however, the number is once again on the rise. “Despite progress toward economic recovery, there are still many Americans looking for a source of supplemental income. Coupled with increasing consumer confidence, both sales and interest in the opportunity are at near-record levels,” said DSA President Joe Mariano.

  • Both the Wellness and Services categories have seen a steady increase in sales over the last several years. Various direct selling energy companies that have entered deregulated markets across the country have notably contributed to the growth of the Services category.

WFDSA Global Statistics

The DSA announcement occurred in conjunction with a World Federation of Direct Selling Associations (WFDSA) report on global direct sales trends. “We saw growth in sales and salesforce in all regions of the world,” said Alessandro Carlucci, WFDSA Chairman and CEO of Brazilian direct selling company Natura Cosméticos. Carlucci also noted strong growth in emerging markets around the world.

Global direct sales totaled $166.9 billion in 2012, up 5.4 percent from $158.3 billion in 2011. With 19 percent of all sales, the U.S. represents the world’s top direct selling market—followed by Japan (14 percent), China (12 percent), Brazil (9 percent), and South Korea (8 percent).


“Whenever you have a product or service that is enhanced by personal recommendation or explanation, direct selling is a viable distribution model,” Mariano noted. “Consumers aren’t used to ‘comparison shopping’ for utilities so they rely on recommendations of those whom they trust. That’s one of the key benefits of direct selling.”

  • Smaller direct selling companies (reporting annual retail sales under $3 million) saw an average retail sales increase of about 22 percent, with 76 percent of those companies experiencing growth.

“Our research has shown that, across the board, consumers like the idea of supporting small, local businesses,” said Mariano.

Read the full DSA press release and view a video of the announcements below.

WFDSA/USDSA 2012 Global Direct Selling Statistics Announcement from Amy Robinson on Vimeo.

Filed Under: Daily News

EU Personal Care Market Grows Amid Economic Recession

June 22, 2013 by DSN Staff Leave a Comment

The European personal-care market continues to produce strong figures despite a poor economic climate, according to Cosmetics Europe, The Personal Care Association. Cosmetics Europe President Fabio Franchina addressed the association’s General Assembly last week, reporting that the market grew 0.8 percent year-over-year in 2012 for a total of EUR 72 billion (over USD $94 billion) in sales.

The EU leads the world in the personal-care market sector, with a share almost double that of the US and Japan markets combined. Franchina says that, although the industry has experienced the pains of recession, it continues to experience real growth. Much of that growth originates outside of Europe, with exports accounting for more than one-third of all production.

The General Assembly also discussed the European Regulation for Cosmetics legislation that will take effect on July 11, bringing the entire industry under a common regulatory framework. “The introduction of an EU Regulation for Cosmetics is a decisive step towards creating a strong, single-level playing field,” according to Cosmetics Europe Director-General Heerink. Heerink also says the legislation presents an opportunity for the industry to spearhead its own voluntary frameworks and encourage innovation and consumer protection.

Read more on the growth of Europe’s personal-care market.

Filed Under: Daily News

Tupperware Pushes Ad Campaigns, Premium Products in India

June 21, 2013 by DSN Staff Leave a Comment

tupperware


Following a strong performance in India last year (sales rose 50 percent in the third quarter alone), Tupperware is taking further steps to build its presence in the country. Within the last year, the Florida-based company has garnered attention through its TV advertising—a campaign unique to Tupperware’s Indian market.

Director of Marketing Anshu Bagai says an upcoming second edition of Tupperware’s TV campaign aims to broaden and diversify the company’s salesforce in India. “Earlier, the notion was that Tupperware was meant only for housewives, but now there are professionals who want to take it up on weekends or at office parties. So, there has been a discernible perception change as well,” Bagai said.

According to a 2012 Nielsen brand awareness survey, Tupperware’s consistent marketing—including extensive print materials and temporary kiosks, in addition to its mainstream TV ads—has considerably boosted the brand in comparison to the findings of a similar survey in 2008.

In its effort to reach new audiences, Tupperware is also extending its product range. The company has launched its super-premium Ultimo line, which features a variety of imported steel cookware. Tupperware has also entered the competitive water purifier market with its TupperSure Water product, which utilizes a three-layer water filtration process to produce hygienic drinking water without the use of electricity.

Read more on Tupperware’s progress in India.

Filed Under: Daily News

Amway CEOs Named Business Persons of the Year

June 20, 2013 by DSN Staff Leave a Comment

Amway


Amway co-CEOs Doug DeVos and Steve Van Andel received special honor in their hometown this week from the Economic Club of Grand Rapids. The group honored Amway’s leaders as Business Persons of the Year at its annual dinner.

Former Secretary of State, U.S. senator and first lady Hillary Clinton headlined the event, which took place at the city’s DeVos Place Convention Center—named in honor of Doug DeVos’ father, Richard, who co-founded Amway with Jay Van Andel.

The CEOs received recognition for leading Amway in its year of global growth and record-breaking sales. Amway (Alticor Inc.) generated $11.3 billion in revenue last year, making it the No. 1 direct selling company in the world.

Doug DeVos and Steve Van Andel serve in many other capacities both locally and nationally. Van Andel is a board member at the Metro Health Hospital, U.S. Chamber of Commerce and Gerald R. Ford Presidential Foundation. DeVos serves as Chairman of the executive committee of the National Constitution Center and on the boards of The Right Place and the World Federation of Direct Selling Associations.

Click through to read more on the event and honorees.

Filed Under: Daily News

Herbalife Reports Consumer Survey Results

June 19, 2013 by DSN Staff Leave a Comment

Herbalife


Los Angeles-based Herbalife recently announced the results of a Neilsen Co. survey funded by the global nutrition company. The survey of more than 10,000 consumers found that about 8 million U.S. customers purchased Herbalife products over a recent three-month period.

The findings indicate a broad Herbalife consumer base beyond the company’s network of about 550,000 independent distributors. The third-party study sheds further light on accusations made against the company by Bill Ackman of Pershing Square Capital Management. Following his $1 billion short against Herbalife’s shares last December, Ackman maintains that the company uses a questionable business model.

Read more on Herbalife’s consumer survey here and here.

Herbalife has also announced plans to hire 250 full-time employees at its new Winston-Salem, N.C., plant by the end of this year. The plant is projected to double that number of hires by July 2014, when it reaches full production capacity.

The company cut in half its original three-year hiring timetable partly due to double-digit growth in demand for the plant’s product—particularly powder, liquid and teas. Chief Operating Officer Richard Goudis said, “The growth of these products is faster than the growth of the company as a whole; therefore it is important that we get what will be our largest and most-efficient plant running sooner so we can benefit from increased sales sooner.”

Read more on Herbalife’s plans for its new North Carolina plant.

Filed Under: Daily News

DSA Adopts Revised Direct Selling Definition

June 18, 2013 by DSN Staff Leave a Comment

DSA


As new companies adopt the direct sales model and existing companies continually evolve, the term direct selling takes on added nuance as well. The Direct Selling Association (DSA) is addressing the need for cohesive, up-to-date language to describe the work of the many, diverse companies within the industry.

At a June 8 meeting held in conjunction with the DSA’s 2013 Annual Meeting, the Board of Directors unanimously approved a revised definition of direct selling. The DSA Strategic Planning Committee presented a draft definition to the Board in March and collected feedback and responses regarding the proposal. The definition as adopted is:

Direct selling is a business model that offers entrepreneurial opportunities to individuals as independent contractors to market and/or sell products and services, typically outside of a fixed retail establishment, through one-to-one selling, in-home product demonstrations or online. Compensation is ultimately based on sales and may be earned based on personal sales and/or the sales of others in their sales organizations.

Direct sellers may be called distributors, representatives, consultants or various other titles. They may participate in various ways, including selling the products themselves or through their sales organizations, providing training and leadership to their sales organizations, referring customers to the company and purchasing products and services for personal use.

Although it provides useful criteria, the stated definition is not a legal one. “This will be handed off to the Government Relations Committee as a guideline for evaluating state statutes and the like,” said Committee Chairman Marjorie Fine (Shaklee). “The Strategic Planning Committee will meet later this summer to determine next steps for the definition as we plan for it to be used by the association and its member companies.”

To provide additional information and address myths and misconceptions regarding the industry, the DSA has also launched a new microsite at www.directsellingfacts.com. The site features facts and stats, as well as videos messages from both government officials and academics who share their knowledge and perceptions of the direct sales channel.

Filed Under: Daily News Tagged With: Shaklee

New Trust Council Reinforces Core Values at WorldVentures

June 15, 2013 by DSN Staff Leave a Comment

WorldVentures


Among the Core Values that inform WorldVentures’ company culture is a commitment to “honor, embody and expand trust.” In a tangible step toward strengthening the company’s relationship with its members and sales reps, Worldventures recently announced the launch of its Trust Council.

The Council will work to ensure that practices in both the field and the corporate office align with the company’s standard of authenticity and transparency. The Council will also serve as a sounding board in decision making and developing new projects. Mike Azcue, CEO and Co-Founder of the vacation and entertainment company, handpicked the Council of corporate executives and Independent Representatives.

He said, “The relationship we have with our Independent Representatives and DreamTrips™ members is invaluable, and in an economy where trust in business is low, and the pressure to succeed is high, WorldVentures is dedicated to helping establish trust and maintain an ongoing responsibility for our company’s values and people.”

Read the full press release from WorldVentures.

Filed Under: Daily News

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