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PM International is reported US$; C$ data not available
Preliminary highlights of 2022 reporting
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This report highlights preliminary data on Global Top Direct Selling Companies with at least $2 billion in direct selling revenue. Excluded are services-only direct selling companies (eXp Realty at $4.6 billion in 2022 revenue, Primerica at $2.7 billion and UK-based utilities company Telecom Plus at $2 billion).
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2022 early estimates point toward a downturn year for the industry in general. Seven of the nine Global $2 billion+ companies in this report had US dollar net sales declines. On a constant dollar (C$) basis results 2022 results were more mixed, with three companies growing significantly and five declining.
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The strengthening of the US dollar in 2022 was a major factor in reported US sales. Seven of the nine companies in this report experienced significant negative FX impacts on their US$ sales results. In 2022, the US$ appreciated 4% against the Chinese Yuan, 12% against the Euro, 20% against the Japanese Yen and 13% against the Korean Won. But for the first time since 2017, Natura results were favorably impacted by the Brazilian Real, which rose 4% against the US dollar.
- Inflation, the Russia/Ukraine conflict, China’s Zero Covid policy that lasted most of 2022, and declines in distributor numbers and productivity also were significant factors in the industry's performance.
Preliminary highlights by company
Amway remains the #1 largest direct selling company in the world. The next largest company, Natura & Co, totaled $5.7 billion in direct selling revenue from Natura, Avon and The Body Shop at Home.
Herbalife: For the first time since 2017, Herbalife recorded a C$ sales decline (-5% C$).
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Driving the decline were a continuing sales decline in China and a downward turn in their US market. China sales fell -36%(LC) with continual loss of distributors.
- For the first time since the FTC action in 2016, Herbalife sales in the US, its #1 market, declined (-12% LC) as engagement of distributors who signed up during the early pandemic period dropped.
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India and Vietnam continued to be growth markets for Herbalife. India was up +39% (LC) with brand promotion, product line expansions, and increased reach (tier II and III cities, product access points and customer-direct shipping capability). India is now Herbalife's #2 market. Vietnam sales increased +12% (LC).
- Herbalife suspended most of its operations in Russia, which generated $144 million in 2021 sales.
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Former CEO Michael Johnson resumed the helm at the end of October 2022 following the abrupt departure of its CEO.
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Herbalife is now looking to relaunch itself as a premier public health and wellness company underpinned by Herbalife One, a $400 million investment digital platform. In addition, it is modernizing its compensation structure and expanding into vertical product spaces.
Avon: Sales of Natura +Co’s Avon brand (which excludes North America) decreased -7% (C$) negatively impacted by a continually shrinking sales force and reduced operations in Russia.
- Sales in Ukraine and Russia declined approximately -28% (US$) to $220 million in 2022.
- Sales in Brazil, its largest market at 19% of total revenue, fell -6%.
- It exited Albania and initiated strategic partnerships with specialist beauty players in India, Saudi Arabia, and Kyrgyzstan.
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Further market withdrawals or changes in operating models are expected as Avon seeks to concentrate on its profitable markets.
Vorwerk: Total Vorwerk revenue declined (-15% US$ and -5% C$) from divestiture of its Jafra beauty business in Q1 2022 and the -12% depreciation of the Euro. Excluding the sale of Jafra, Vorwerk (minus Jafra sales) is estimated to have grown slightly in 2022 (+3% C$) with another reportedly record year for Thermomix.
Coway: Total revenue continued to climb but at a slower pace in 2022. It maintained its steady sales growth in Korea +3% (LC). Korea is its #1 market at 63% of global sales. Its meteoric sales trajectory in Malaysia has tapered off to +6% (LC) after recording 39% 3-year CAGR for 2018-2021. Malaysia accounted for 32% of Coway total global sales.
Natura: Natura +Co’s Natura brand continued its steady growth, which accelerated to +15% (C$) in 2022.
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Natura's sales in Brazil recovered (+14% LC) after a dip in 2021. Brazil is its largest market at 63% of Natura brand total sales.
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Sales in Latin America outside of Brazil continued their robust growth (+15% C$).
- Retail sales were reported as “strong.” Natura now has 90 stores and 649 consultant franchise stores.
Mary Kay: Sales are estimated to have declined, driven by a -21% (LC) decrease in China and a -5% in the US. Sales in Russia, another key market, would have been negatively impacted as well.
PM International: The Luxembourg-based dietary supplement company reported a +9% US dollar increase in US dollar sales despite a 12% depreciation of the Euro against the US dollar. Korea, where sales grew +36% is indicative of their successful year.
Nu Skin: After a 3-year growth, total sales declined in 2022 (-12% C$).
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In the US, its growth market, its sales growth slowed to +4% in 2022 after a 19% 3-year CAGR from 2018-2021. Its China sales (-34% LC) continued their steep decline sustained since the 100-day review in 2019.
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As part of its Nu Vision 2025 to transform into an affiliate-powered social commerce business model, it acquired social commerce company, Mavely, launched its consumer app Vera, and its affiliate app Stela, and experimented with one-price strategy.
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In the second half of 2022, it launched its first connected beauty device, ageLOC LumiSpa iO, which generated a less-than-expected revenue of approximately $42 million. For comparison, the original LumiSpa device generated $130 million in 2017 when launched in Q4 of that year.
(Sources: Amway Strategic Insights, preliminary global market share reporting)
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