June 2010 Global 100: The Top Direct Selling Companies in...
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June 2010 Global 100: The Top Direct Selling Companies in the World by Katherine Ponder Research Credits: Yasmin Waring, Michael Rice, Katherine Ponder, Alan Van Zelfden, Chieko Maruyama Special thanks to: Lauri Dodd, Jennifer Workman Pitcock, Tim Coleman Yes, we are ambitious. Direct Selling News and all of the companies in this industry, that is. No challenge is too great. To illustrate this point, DSN created the Global 100, the top direct selling companies in the world, based on 2009 year-end wholesale revenue (in U.S. dollars). Using data from Lexis Nexis, Hoovers, Dun & Bradstreet, professional researchers, Standard & Poor’s, personal interviews, corporate websites and others, we are proud to offer this list. When verifying data, every attempt was made to reach a company spokesperson to gain input and approvals. This was not possible with all companies. We also unequivocally recognize that research and voluntary reporting cannot provide the entire picture of our industry. Nevertheless, this is one of the industry’s most comprehensive reports assembled. We believe that this will be referenced by other industries, media, private equity investors, academics and researchers in the coming years, just as our other ranking reports have been. The list also sets benchmarks upon which to regard each other. All of us in the industry are keenly aware of the growing competition, and look to this list as a confirmation of strength and a challenge to strive for more. While absolutely every company on the list has had obvious success, this formal ranking has further fueled the competitive fire of some companies. “I really believe this annual DSN ranking stokes the competitiveness that is always present in an industry filled with entrepreneurs,” said BK Boreyko, CEO and Founder of Vemma Nutrition Company. “I know with Vemma, as a young company, coming in on the top 100 list is an honor, but it’s also something I put up as a goal—to bust into the top 50 over the next few years. I think these rankings will help every competitive executive in the industry get a much better benchmark for just how effective his company and team’s efforts are.” That kind of competitiveness has helped companies and individuals work through the substantial economic challenges of 2009. While economic indicators were on code red all around us, direct selling fared well. With sales ranging from more than $10 billion for our No. 1 entry to around $67 million for No. 100, the direct selling industry once again proves its might. “Those numbers speak to the fact that a diverse range of direct sales companies are thriving, even with the current economic issues facing us today,” said Michael S. McDevitt, Chief Financial Officer of Medifast Inc., parent company of Take Shape for Life. “It says now more than ever, especially with the explosion of social media, that personal relationships are the driving force behind how the public views companies and products and how word-of-mouth really shapes the buying decisions people are making.” In addition to gathering and verifying the data, several trends were revealed through our research. One is that international sales were more important than ever, as stronger national economies could offset unstable ones. “[Our] Malaysian company is the fastest-growing MLM in that country—well in the top 10, with over 8,000 attendees at our main convention,” said Graeme Clegg, Chairman of New Zealand-based New Image Intl., whose experience shows that even the Asia-Pacific nations are looking outward and to each other for growth.
Transcript of June 2010 Global 100: The Top Direct Selling Companies in...
June 2010
Global 100: The Top Direct Selling Companies in the Worldby Katherine Ponder Research Credits: Yasmin Waring, Michael Rice, Katherine Ponder, Alan Van Zelfden, Chieko MaruyamaSpecial thanks to: Lauri Dodd, Jennifer Workman Pitcock, Tim Coleman
Yes, we are ambitious. Direct Selling News and all of the companies in this industry, that is. No challenge is toogreat. To illustrate this point, DSN created the Global 100, the top direct selling companies in the world, basedon 2009 year-end wholesale revenue (in U.S. dollars).
Using data from Lexis Nexis, Hoovers, Dun & Bradstreet, professional researchers, Standard & Poor’s, personalinterviews, corporate websites and others, we are proud to offer this list. When verifying data, every attempt wasmade to reach a company spokesperson to gain input and approvals. This was not possible with all companies. Wealso unequivocally recognize that research and voluntary reporting cannot provide the entire picture of our industry.Nevertheless, this is one of the industry’s most comprehensive reports assembled. We believe that this will bereferenced by other industries, media, private equity investors, academics and researchers in the coming years, justas our other ranking reports have been. The list also sets benchmarks upon which to regard each other.
All of us in the industry are keenly aware of the growing competition, and look to this list as a confirmation of strength anda challenge to strive for more. While absolutely every company on the list has had obvious success, this formal ranking hasfurther fueled the competitive fire of some companies. “I really believe this annual DSN ranking stokes the competitivenessthat is always present in an industry filled with entrepreneurs,” said BK Boreyko, CEO and Founder of Vemma NutritionCompany. “I know with Vemma, as a young company, coming in on the top 100 list is an honor, but it’s also something Iput up as a goal—to bust into the top 50 over the next few years. I think these rankings will help every competitive executivein the industry get a much better benchmark for just how effective his company and team’s efforts are.”
That kind of competitiveness has helped companies and individuals work through the substantial economicchallenges of 2009. While economic indicators were on code red all around us, direct selling fared well. Withsales ranging from more than $10 billion for our No. 1 entry to around $67 million for No. 100, the directselling industry once again proves its might.
“Those numbers speak to the fact that a diverse range of direct sales companies are thriving, even with thecurrent economic issues facing us today,” said Michael S. McDevitt, Chief Financial Officer of Medifast Inc.,parent company of Take Shape for Life. “It says now more than ever, especially with the explosion of socialmedia, that personal relationships are the driving force behind how the public views companies and productsand how word-of-mouth really shapes the buying decisions people are making.”
In addition to gathering and verifying the data, several trends were revealed through our research. One is thatinternational sales were more important than ever, as stronger national economies could offset unstable ones.“[Our] Malaysian company is the fastest-growing MLM in that country—well in the top 10, with over 8,000attendees at our main convention,” said Graeme Clegg, Chairman of New Zealand-based New Image Intl., whoseexperience shows that even the Asia-Pacific nations are looking outward and to each other for growth.
Another notable development is that consumers are growing ever more savvy and committed to taking care of their ownneeds. Brazil-based Natura is helping people do that very thing, and Natura International CEO Mauricio Bellora said,“Over the last year we’ve experienced very accelerated growth by focusing on bringing life balance and well-being, orwhat we call ‘bem-estar,’ to our markets that include South America, Central America and France.” New Image ChairmanGraeme Clegg also reported, “Science-supported products are essential in today’s more sophisticated market, whenanecdotal stories are no longer accepted.”
Each distributor and customer is also carefully evaluating quality versus price. LR Health & Beauty Systems’ CEO Dr. JensM. Abend stated, “[LR’s] exceptional sales growth confirms our strategy to invest in high-quality, innovative products [thatare] ‘Made in Germany.’ ” Such “made in…” tags have also helped the Longaberger Co. and CUTCO/Vector Marketing.
A final trend that we have picked up on is that consumers are still “cocooning”—that is, entertaining at home and makingtheir houses more comfortable. They often reach out via technology from the comfort of their homes. These facts areproviding a great environment for companies, such as candle-maker PartyLite. “There’s so much to be excited about rightnow,” said Anne Butler, President of PartyLite Worldwide. “There is enormous potential for the classic home party modelto be powerfully enhanced by new technologies like social media, providing us all with fantastic opportunities tocommunicate, build relationships and interact with current and future consultants, hosts and customers.”
As you read through the Global 100, consider how this list would strike an industry outsider. That’s just the viewpointtaken by Orville and Heidi Thompson, Scentsy Chief Executive Officer and President, respectively. “Scentsy is a proudmember of the direct selling industry and thrilled to be recognized on this list…. We are sure most people outside ourindustry will be surprised by the size, depth and worldwide scope of the direct selling industry. Many of the largestcompanies are household names today, but we expect most people have no concept of the growth and vibrancy representedby the dozens of very successful smaller, newer companies on the list.”
*Denotes the company did not verify this information.
38. Ambit Energy L.P.Sales: $324 millionCountry: USA
Ambit Energy is a residential energy provider in the United States. It currently providesresidential electricity service in deregulated areas of Texas; electricity and natural gasservice in New York markets; and natural gas service in Illinois.
Wholesale Corporate Revenue: $324 millionMarketing Style: Person-to-personCompensation Plan: Multi-levelProducts: Electricity and natural gasMarkets: 1 (USA)Distributors: 60,000 Employees: 188Headquarters: Dallas, TexasYear Founded: 2006
