Natura Named One of the World’s Most Ethical Companies

For the past decade, the Ethisphere Institute has recognized companies that lead the world in ethical business practices and standards. This year, Brazil’s Natura Cosméticos has once again secured a spot on Ethisphere’s list of the World’s Most Ethical Companies.

The program aims not only to showcase forward-thinking organizations, but also to highlight the connection between good ethical practices and good performance. Ethisphere reports that, on a financial basis, the companies on its list historically have outperformed their peers.

“Companies that demonstrate leadership in areas such as citizenship, integrity and transparency create greater value to investors, communities, consumers and employees, thereby solidifying a sustainable business advantage,” Timothy Erblich, CEO of the Ethisphere Institute, said in a statement.

Natura has graced every World’s Most Ethical Companies list since 2011, as well as the inaugural 2007 list. The seller of cosmetics and personal-care products is the only Brazilian honoree in this year’s crop, and one of only four companies in the Health & Beauty industry. In all, the 2016 list names 131 companies from 21 countries, with more than 45 industries represented.

The vetting process is centered on Ethisphere’s “Ethics Quotient”—a proprietary rating system that evaluates companies in the areas of ethics and compliance programs, corporate citizenship and responsibility, culture of ethics, governance, and leadership, innovation and reputation. Honorees are selected for promoting good ethics internally, empowering managers and employees to make good choices, and shaping industry standards through their efforts.

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Sales of Organic Personal-Care Products to Hit $16 Billion by 2020

The organic personal-care products market, which accounts for 35 percent of all category sales, is expected to reach $16 billion by 2020, according to a new report by market intelligence firm Zion Research.

Direct selling brands Amway, Arbonne International and Natura Cosmeticos SA are key players in the market, alongside traditional retail brands such as The Body Shop, Burt’s Bees and Aveda Corp.

In 2014, sales of organic moisturizers, shampoos and other products topped $9.2 billion, putting the expected compound annual growth rate (CAGR) at 9.5 percent through 2020. Currently, organic skincare is the most popular segment, accounting for 32 percent of market sales in 2014.

North America dominates global sales of organic personal-care products, trailed by Europe and Asia Pacific; however, demand for organic products is increasing in emerging markets such as China and India.

As a growing number of consumers eschew synthetic products in favor of organic offerings, manufacturers face a new set of challenges in bringing their products to market, the research found. Among them are the short shelf life and higher prices associated with organic products, which consist of natural ingredients obtained from plants.

Beautycounter Joins Environmental Working Group to Launch Product Safety Certification

Beautycounter has found a like-minded partner in Environmental Working Group (EWG), the nonprofit environmental and health group known for its research on toxic and potentially harmful chemicals in consumer goods. The nontoxic beauty brand is taking part in EWG VERIFIED, a new program to help shoppers easily identify safe personal-care products.

Henceforth, products that meet the group’s highest standards will bear a green EWG VERIFIED seal. EWG has compiled an extensive list of harmful ingredients, similar to Beautycounter’s Never List, banned by U.S. or international government agencies and other public health organizations. To gain the group’s stamp of approval, products must adhere to those restrictions. Companies also must follow good manufacturing practices and fully disclose product ingredients on their packaging and websites.

The point-of-sale initiative builds upon the success of EWG’s Skin Deep database, which provides safety ratings on a wide range of personal-care products. California-based Beautycounter, along with skincare brand MyChelle Dermaceuticals, is helping to launch the EWG VERIFIED program as a founding member.

“Beautycounter is mission-driven—we use a rigorous ingredient selection process to ensure we’re making safer, effective skincare and beauty products, while simultaneously working to move the market and policy toward cleaner, healthier ingredients,” Gregg Renfrew, Beautycounter Founder and CEO, said in a statement. “Early participation in the EWG VERIFIED program is in full alignment with who we are.”

The program fills a regulatory void in the market, where companies can introduce cosmetics products and ingredients without the approval of the U.S. Food and Drug Administration. In a statement, EWG President and Co-Founder Ken Cook said the group aims to expand its certification program to additional product categories, including household cleaners and food.

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.


Click here to order the March 2015 issue in which this article appeared or click here to download it to your mobile device.


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.

 

 

 

Fortune Ranks Tupperware among World’s Most Admired Companies

Photo: Flickr/PeacockModern


Tupperware Brands has once again landed on Fortune’s annual ranking of the World’s Most Admired Companies. The global brand has now spent eight consecutive years on the list, where it falls under the Home Equipment, Furnishings category.

To compile its report card on corporate reputation, Fortune ranks nine key attributes such as use of corporates assets, social responsibility and long-term investment value. Tupperware ranked highest in its category for global competitiveness, and second for innovation and use of corporate assets. The company markets its kitchenware, beauty and personal-care products through an independent salesforce of 2.9 million in nearly 100 countries.

“The strength of our mission and our people propels us as a company to continue our success,” Rick Goings, Chairman and CEO, said of Tupperware’s work to empower and support women. “Global competitiveness is one of the priorities of the business, along with the other categories the list is derived from, and we are honored to be ranked on the World’s Most Admired Companies list for the eighth year in a row.”

Tupperware’s efforts on behalf of women extend beyond promoting financial independence. As a natural extension of its business model, the brand also aims to impact lives through opportunity, support and relationships—a philosophy embodied in its Chain of Confidence program. Goings and his wife, Susan, Global Ambassador for the program, recently accepted the Sewall-Belmont House & Museum’s Voice for Women Award in recognition of their work. U.N. Women also tapped Goings to represent Tupperware on its Private Sector Leadership Advisory Council, an initiative focused on economic and political advancement for women.

Beautycounter: Safer Products Changing Lives

by Andrea Tortora

Click here to order the February 2015 issue in which this article appeared or click here to download it to your mobile device.


Photo above: Beautycounter Founder Gregg Renfrew is committed to changing the beauty products industry for the better and getting safe products into the hands of customers.


Company Profile

  • Founded: 2013
  • Headquarters: Santa Monica, California
  • Founder: Gregg Renfrew
  • Products: Beauty and skin care

Beautycounter


Beautycounter is a content first, product second kind of company. The California-based upstart maker of safe, nontoxic beauty and skincare products is focused on advocating for public health as it defines its own way of doing business in a crowded market.

“We are not all-natural or organic,” says Founder Gregg Renfrew. “We are focused on safety. We make sure we don’t ever say we are perfect. It is about progress.”

Beautycounter defines itself as a “direct retail brand.” It sells to consumers through consultants, at beautycounter.com, and via strategic partnerships with companies such as J. Crew and Gwyneth Paltrow’s Goop.com.

Renfrew is on a mission to change the regulation of the beauty products industry, and she thinks telling the Beautycounter story through person-to-person interactions is the best way to do it. “We want to be an information first, disruptive beauty brand,” she says. Beautycounter’s mission: to get safe products into the hands of everyone.


“We are not all-natural or organic. We are focused on safety. We make sure we don’t ever say we are perfect. It is about progress.” —Gregg Renfrew, Founder


Explosive Growth

At just under 2 years old, Beautycounter is already making an impact on the $59 billion U.S. cosmetics and personal-care industry. In 2013, natural and organic personal-care products accounted for $12.6 billion in sales, according to data from Sundale Research.

Since January 2014, Beautycounter has grown over 550 percent. From its initial launch in March 2013, the company’s multi-channel strategy now claims more than 5,000 independent consultants.

Renfrew started her company with a few SKUs for essential skin and body care. Today Beautycounter offers more than 75 products for men, women and children, including face and body collections, sunscreen, and a color collection.

The company’s e-commerce channel is also booming. The Band of Beauty membership program lets direct customers earn rewards and free shipping for online orders, all while supporting Beautycounter’s push to promote safe products. Loyal clients pay a $25 annual fee in order to receive extra online discounts; $10 is donated to one of three nonprofit groups that Beautycounter supports: Environmental Working Group, Breast Cancer Fund (which coordinates the Campaign for Safe Cosmetics,) or Healthy Child Healthy World.

In addition to the consultant base and their customers, there are now more than 6,000 consumers in the e-commerce Member Program who support Beautycounter’s social mission, Renfrew says, a fact of which she is very proud. “The only way we can bring about change is to be a large movement of lots of people.”

An Eye-Opening Start

Beautycounter is well on its way, says Janet Nudelman. She runs the Campaign for Safe Cosmetics and is Director of Program and Policy at the San Francisco-based Breast Cancer Fund.

“Beautycounter is one of the first companies to ever emerge in a …

Click here to read the entire article at Direct Selling News.

 

 

90 Days of Direct Selling – Day 89

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Zija International

2013 Net Sales: $144 million

Country: USA

Zija International specializes in cutting-edge health, wellness and nutrition products. Its offering has grown to include liquid nutritionals, weight management, energy, and performance and skin-care lines. Zija currently operates in 45 countries worldwide through a global family of independent distributors. The company is dedicated to empowering its distributors, customers and employees to reach their dreams of health and financial wellness and live “Life Unlimited.”

 

2012 Rank: 82
2012 Net Sales: $110 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics, personal care, food and beverage, wellness
Markets: 45
Salespeople: 185,500
Employees: 172
Headquarters: Lehi, Utah
Executive: Rodney Larsen
Year Founded: 2005
Website: http://www.drinklifein.com

 

90 Days of Direct Selling – Day 88

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Zhulian Marketing

2013 Net Sales: $127 million

Country: Malaysia

Zhulian Marketing has emerged as a direct selling innovator for its progressive, visionary Golden Business Opportunity as well as its reliable and innovative products. The company is presently doing business in Malaysia, Singapore, Thailand and Indonesia.

 

2012 Rank: 74
2012 Net Sales: $145 million
Sales Method: Not available
Compensation Structure: Not available
Products: Home care, food and beverage, nutritional supplements, personal care, cosmetics, air treatment, water treatment, sleep enhancement, hygiene
Markets: 4
Salespeople: 100,000
Employees: Not available
Headquarters: Penang, Malaysia
Executive: Teoh Beng Seng
Year Founded: 1989
Website: www.zhulian.com.my

 

90 Days of Direct Selling – Day 87

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Youngevity

2013 Net Sales: $86 million

Country: USA

Youngevity is a California-headquartered wholesome consumer products company featuring the 90 for Life Program, Healthy Body Transformation Program, the MK Collaborative and a versatile product offering. Publicly traded parent company Youngevity International was formed after the merger of Youngevity and Javalution Coffee Co. in the summer of 2011.

 

2012 Rank: 96
2012 Net Sales: $75 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics, personal care, wellness, memory books, ladies clothing, jewelry
Markets: 5
Salespeople: 100,000
Employees: 150
Headquarters: Chula Vista, California
Executive: Steve Wallach
Year Founded: 1997
Stock Symbol: OTCQX: YGYI
Website: www.youngevity.com

 

90 Days of Direct Selling – Day 85

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WorldVentures

2013 Net Sales: $195 million

Country: USA

WorldVentures is a social commerce, peer-to-peer company that sells vacation and experience club memberships. It combines the power of the Internet with the strength of the direct selling industry to market its DreamTrips Memberships. WorldVentures has active representatives and members in 26 countries.

 

2012 Rank: 75
2012 Net Sales: $143 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Travel packages
Markets: Not available
Salespeople: Not available
Employees: 190
Headquarters: Plano, Texas
Executives: Mike Azcue and Wayne Nugent
Year Founded: 2005
Website: www.worldventures.com

 


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 Yanbal International

2013 Net Sales: $848 million

Country: Peru

Yanbal International is much more than a cosmetics company. It is a vibrant corporation that changes the lives of almost half a million people who share beauty, prosperity and well-being. With a presence in 10 countries and renowned for its world-class products, Yanbal is still growing, achieving a positive and real impact in the lives of people.

 

2012 Rank: 17
2012 Net Sales: $815 million
Sales Method: Person-to-person
Compensation Structure: Multi-level
Products: Cosmetics, personal care, skin care, jewelry, fragrances
Markets: 10
Salespeople: 390,000
Employees: 6,100
Headquarters: Lima, Peru
Executive: Janine Belmont Dauelsberg
Year Founded: 1967
Website: www.yanbal.com