Community marketing continues to develop as a gross sales marketplace for dietary dietary supplements
Network Marketing, also known as Multi-Level Marketing to refer to the compensation structure for active sellers, is a business model that has been used to market a wide variety of products, from housewares to gifts to financial products, and even has Marketed electricity and natural gas to household customers. But nutrition and personal care products also seem to be a particularly good fit, as the personal transformation message is well received in the face-to-face transactions that shape the industry.
Direct Selling News, a trade magazine covering the industry, publishes an updated list of the top direct selling companies every year based on reported sales. Companies for which nutritional products, including nutritional supplements and functional foods, make up all or most of their product lists make up a large portion of the magazine’s latest DSN Global 100 list.
Amway leads, Herbalife No. 3
The top slot is occupied by Amway, and has been for many years. Amway’s Nutrilite brand of vitamins, nutritional supplements, and foods predates the company itself and was founded in 1934 (Amway was founded in 1959). Amway, which is privately held, does not break down sales by product segment. According to DSN, Amway had sales of $ 9.5 billion in the last fiscal year.
Third on the list is Herbalife, a publicly traded company. Herbalife is solely dedicated to the sale of nutritional products, including meal replacement shakes and nutritional supplements. The company’s 2015 revenue as reported by DSN was $ 4.5 billion. Herbalife was recently put under pressure by activist investor Bill Ackman and his private investment firm Pershing Square. Ackman has taken a short position in Herbalife stock valued at up to $ 1 billion and has launched an unprecedented public campaign to discredit the company, in part by using an illegal pyramid scheme. Herbalife appears to have weathered this storm and sales are continuing to rise.
Infinitus is another company on the list that sells a variety of nutritional supplements. This Malaysian company, little known in North America, sells Chinese herbal products and other goods in and outside of China. The annual turnover for 2015 is given with 3.9 billion US dollars.
Jeunesse grows by more than 100% in the period 2014-2015
Jeunesse is a relative newcomer to the list. The Florida-based company sells personal care and nutritional products with a beauty claim. The company was named # 18 on the list and had sales of just over $ 1 billion in 2015 (equivalent to net sales of $ 419 million in 2014).
Another company that, like Infinitus, sells the lion’s share of its products in China is Usana, although the company is based in Utah. Usana, listed at # 21, offers a wide variety of nutritional supplements and foods. Revenue in 2015 was $ 915 million.
“Last year was another great year for USANA,” said Kevin Guest, Co-CEO of Usana. “We had our 13th consecutive year of record sales, our highest net profit in the company’s history and a record number of active customers. We believe 2016 will be another great year for USANA and we anticipate net sales of over 1 billion US dollars. “
Other major nutritional suppliers on the list include Advocare (31st place, $ 719 million), Arbonne (40th place, $ 502 million), Plexus (46th place, $ 348 million), Nature’s Sunshine (51st place, 325 million USD) . USD), LifeVantage (No. 69, $ 190 million), and Mannatech (No. 71, $ 180 million).
