Rodan + Fields: A Prescription for Change

by Karyn Reagan

Left: Student participants in buildOn, an inner-city education and service program, speak during a “Jobstacle Course” led by employees at Rodan + Fields’ headquarters.

Right: BuildOn students from an Oakland, California, high school were treated to a day of learning with workshops on resume writing as well as mock interviews to help them prep for job opportunities.


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At Rodan + Fields, transformation is not just skin deep as they support programs helping educate underprivileged youth.


Company Profile

Founded: 2008
Headquarters: San Francisco
Executives: President and CEO Lori Bush; Co-Founder and Chairman Amnon Rodan
Products: Cosmetics and personal care


Amnon RodanAmnon Rodan
Lori BushLori Bush

While at Stanford University Medical Center in the early 1980s, Dr. Katie Rodan and Dr. Kathy Fields forged a friendship for the same reasons most girls do, but they were also drawn to each other for a practical reason—there just weren’t too many women in the program. After graduation, they each started their own thriving dermatology practices, but the friendship proved lasting and together they have become recognized experts in their field, co-authored two books, and created products and companies that are now household names. “Their goal is to create products that bring the dermatological experience out of medical practice and into the hands of consumers,” says Amnon Rodan, Co-Founder and Chairman of Rodan + Fields as well as Katie’s husband.

The women’s first experience with selling products was the creation of the highly successful acne treatment product, Proactiv Solution™. Since that time, the anti-aging skincare market has grown exponentially, and Katie and Kathy researched and developed a line of products they now market through their company, Rodan + Fields. “In 2002, we created the brand and started selling the skincare line through high-end department stores,” says Rodan. “Within six months, our products caught the eye of Estée Lauder, who offered to purchase our company, so we sold it to them. But in 2007 we felt it was time to buy it back and offer the products through a different channel. Our vision was so much bigger than what traditional retail could offer.”

After studying the various marketing methods available that best served the skincare industry, the distribution channel that rose to the top was direct selling. “We bought the company back in 2007, reopened it in 2008 as a direct selling company, and it has been the best decision we’ve ever made,” says Rodan. “In our first year we did $3 million in business, and now, just six years later, we finished 2014 with $329 million in sales and 75,000 Consultants.” Rodan + Fields also has accumulated five DSA awards since 2008, including the ETHOS award for product innovation in 2014.



Seventy-five high school students from Oakland, California, affiliated with buildOn, took part in Rodan + Fields’ Jobstacle Course, a day of learning their way through the obstacle of job hunting.


A Better Way

Rodan explains that the main reason they chose direct selling was because it was, in their opinion, the best … Click to see the full story at Direct Selling News.

 

 

 

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Q&A: Direct Sales Success at Rodan + Fields

During a recent Rodan + Fields Leadership Summit in Nashville, one of the company’s top 10 markets, Chairman Amnon Rodan and President and CEO Lori Bush shared insights on the company’s evolution and business model in a Q&A for The Tennessean.

When Drs. Katie Rodan and Kathy Fields launched their eponymous company in 2002, the clinical skincare brand became a top seller in high-end department stores. The founders recognized that product sales were largely being driven by word of mouth—a fact that led them to exit department stores and adopt a direct sales model in 2008. Rodan calls that shift “the best decision we’ve made.”

As the economy weathered the 2008 financial crisis, a strong, validated product and attractive business opportunity enabled Rodan + Fields to grow by leaps and bounds. The company, which now supports a network of 50,000 consultants, reported revenues of nearly $200 million in 2013, up from $108 million in 2012.

Read more from The Tennessean.

Rodan + Fields Plans Expansion into New Headquarters

Rodan + Fields Dermatologists has more than doubled its current office space with a new lease on a 62,500-square-foot space on San Francisco’s Spear Street.

The rapidly growing company will move into five floors of the building next summer. President and General Manager Lori Bush reports that the company has experienced a monthly revenue jump of 250 percent over the last two years, exceeding $100 million in sales in 2012 alone.

Rodan + Fields was founded by Dr. Katie Rodan and Dr. Kathy Fields, the creators of Proactiv® Solution, who wanted to make dermatology-based skin treatment more accessible. The direct selling skincare company offers individuals the confidence of healthy, radiant skin through clinically proven skincare regimens.