The MLM industry has seen significant trends and financial changes in recent years, with some companies growing and others declining.

Optavia-Medifast's revenue fell 34.7% to $296 million in Q2 2022, from $1.6 billion annually.

India's direct selling industry, including MLM companies, grew 12% in 2022-23 with a Rs 21,282 crore turnover, driven mainly by wellness products.

Traditional direct selling companies like Avon and Tupperware have declined in recent years, with Avon's stock falling to $3 from $30 and Tupperware's dropping over 90%.

Avon and Tupperware left the Direct Selling Association in 2013-14, and Natura, Avon's owner, lost 60% of its stock value in a year.

Mary Kay, a well-known MLM company, reported a decline in sales to $2.5 billion in 2022, with a business model reliant on recruiting new sellers.

The company's average consultant in Canada makes only $200 a year, raising concerns about the MLM business model's sustainability.

The COVID-19 pandemic has impacted the MLM industry, with some companies adapting and others struggling.

The rise of online marketing has forced MLM companies to rethink their strategies, investing more in owned and paid media.

Some MLM companies, like Educational Development Corp, benefited from the pandemic due to increased home-based learning.

Best of the Best's earnings fell 57% in fiscal 2022.

The pandemic led to a surge in demand for some MLM companies, like Nu Skin, whose stock tripled from March 2020 to June 2021.

Nu Skin generates over 20% of its revenue from China, its largest market.

The pandemic has significantly impacted SMEs, with 85% experiencing a decline in profits.

72% of large enterprises reported a negative pandemic impact on their profitability.

MLMs often target young women for recruitment, as seen with companies like LuLaRoe.

Women are targeted to join MLMs like Trades of Hope, where artisans can earn 3 to 6 times their normal regional income.

MLMs often recruit individuals with irrational thinking using psychological manipulation.

Individuals with disturbing psyche, depression, restlessness, and computer game players are more susceptible to MLM recruitment.

Young people and irrational thinkers are often targeted by MLMs through emotional manipulation.

The search results do not provide a comprehensive list of closed or transitioned MLM companies.

Avon shifted to an MLM-style business in 2000.

Avon's stock value fell from $30 to $3 between 2000 and 2020, indicating a decline in performance.

Tupperware added MLM-type products, but its stock value dropped over 90% in 5 years.

Herbalife, Amway, and Mary Kay Inc remain major direct selling industry players, though their current sales models are unclear.

Amway and Herbalife have terminated Russian operations due to economic circumstances.

The post-pandemic work-from-home trend has supported MLM sales by creating demand for flexible income opportunities.

The gig economy has supported part-time MLM consulting, offering flexible schedules and extra income.

Stringent regulation poses a risk to MLM companies deemed to be operating pyramid schemes.

High consultant turnover can lead to declining sales and revenue in MLM companies.

Inventory is a significant asset for MLM companies and can be challenging to manage.

Oil price increases can impact MLM companies that rely on oil-based products.

Negative press around MLM business models can decrease stock value by eroding investor confidence.

Limited analyst coverage can leave MLM companies under the radar, making it hard for investors to get accurate information.

Micro-cap stocks, often illiquid, can struggle to attract investors.

The pandemic led to 10.5 million new business applications in 2021-2022.

Federal assistance has driven the increase in new business startups by providing necessary capital.

Suburban areas have seen a surge in startups as people escape the city to start their own businesses.

The herb oil market is expected to rise steadily post-pandemic, driven by demand for natural products and increased health consciousness.

The global essential oil market growth is expected to boost demand for herb oil as a natural health product.

Women and low-income individuals are often targeted by MLMs with false promises.

Trades of Hope, an MLM, pays artisans 100% of their asking price, but requires a $150 initial buy-in and $12-13 monthly website fee.

Young women are a target demographic for MLMs like LuLaRoe, which recruit them as distributors and exert financial control.

About 90-99% of MLM participants lose money, with the top 1% earning most of the commissions.

MLMs often use guilt and emotional manipulation to recruit and pressure participants, creating a toxic environment.

Avon and Tupperware, once successful direct sellers, have declined and left the Direct Selling Association over ethics concerns.

Some MLMs have been accused of being pyramid schemes and have been shut down.

Some MLMs use human weakness marketing tactics, like targeting individuals through dating programs.

Individuals with dark personality traits, like narcissism and psychopathy, can thrive in MLMs but create a toxic environment.

MLM recruitment processes can be manipulated by individuals with dark traits who use charisma and strategic thinking.

To retain workers, MLM companies assess their reputation, offer competitive wages and benefits, and streamline hiring.

Happy employees are a business' greatest marketing device, achieved through a strong orientation, open communication, and fair treatment.

Companies use Applicant Track Software or train managers to secure new hires and prevent ghosting.

Implementing these strategies can make a company the Employer of Choice, crucial in today's competitive job market where 50.5 million people quit in 2022.

Companies offering education, charity projects, and regular feedback tend to have higher job satisfaction rates.

Smaller teams and flexible work models with development opportunities can increase employee involvement and lower turnover rates.

Some companies use video testimonials, simplified job descriptions, and Natural Career Progression programs to recruit and retain workers.

Mental health training, flexible leave, and recognition awards can motivate workers and improve wellbeing.

Junior's bakery offers extensive training, competitive wages, and perks, helping them hire nearly 90 new full-time employees in the last year.

Sri Mookambika Infosolutions offers perks like free matchmaking, bi-annual salary hikes, and recognition of achievements, achieving an attrition rate below 10%.

Business leaders consider hiring and retaining talent a top priority, with 95% using increased compensation as a retention strategy.

The effectiveness of these strategies can vary, and companies may need to adapt to changing labor trends, such as prioritizing job flexibility over pay.

MLM companies that offer competitive compensation, benefits, and growth opportunities tend to have a more stable workforce.

India's direct selling industry grew 12% in 2022-23, reaching Rs 21,282 crore, with wellness products accounting for 73.5% of the turnover.

India had 86 lakh active direct sellers in 2022-23, ranking 11th globally.

The Indian government modified the Consumer Protection Rules in 2022 to distinguish legitimate sellers and tighten regulation.

Companies still need clarity on what constitutes a "network of sellers".

The traditional direct selling model has become obsolete, with Avon and Tupperware cited as examples of legitimate companies in the field.

Avon shifted its focus to recruitment in 2000 and was sold to Natura in 2020.

Tupperware's stock value has dropped over 90% in 5 years, with party planners earning low commissions.

Avon and Tupperware quit the Direct Selling Association in 2013-14.

Companies in the MLM industry can use automation to aggregate regulatory updates and standardize taxonomy, adapting to changing regulatory environments.

Assigning regulatory responsibilities and assessing business impact are also crucial for regulatory compliance, and compliance management software can centralize regulatory data.

Risk assessment tools and regulatory intelligence platforms can identify compliance risks and provide real-time updates.

Regulatory changes in countries like China have prioritized qualitative economic outcomes over growth, addressing population and education costs.

These changes have encouraged family formation, reduced education costs, and improved welfare and cybersecurity.

The impact of these regulatory changes on the MLM industry is unclear and requires further research.

The COVID-19 pandemic boosted business for multilevel marketing firms like Nu Skin.

Nu Skin's stock tripled in value from March 2020 to June 2021.

The pandemic is now a problem for Nu Skin in China, its biggest market, which accounts for over 20% of revenue.

Changes in consumer behavior, like a shift to online shopping, have impacted the MLM industry by enabling subscription-based models.

The subscription business has grown over 437% post-pandemic, driven by convenience, personalization, and sustainability.

MLM companies face challenges including supply management and customer retention due to potential subscription cancellations.

The pandemic has driven growth in industries like the herb oil market, due to increased demand for organic and natural products.

The herb oil market is expected to grow due to increasing health consciousness, benefiting MLM companies.

The men's innerwear market has seen a post-pandemic sales decline, largely due to mass brands' inventory pile-up.

Premium innerwear brands have seen steady online sales growth, indicating a shift towards online shopping and premium products.

The MLM industry has seen significant trends and financial changes in recent years, with some companies growing and others declining.

Title:

Content: Optavia – Limited Network Marketing Visibility Leads To Decline?

By Team Business For Home

Optavia-Medifast, a Billion Dollar network marketing company, reportedly generated $1,600 million in revenue for 2022. The company has strong financials with a healthy cash position and no debt, but its sales have plummeted. Their Q2 report showed that the company revenue was down 34.7% to $296 million. For more specific details on this report, you can refer to the article here.

According to the OPTAVIA website:

“Optavia offers four components to support you as you begin your journey toward Lifelong Transformation, One Healthy Habit at a Time. Your independent OPTAVIA Coach guides and supports you throughout your journey to optimal health & wellbeing.”

If any network Marketing company has a strong decline it is very hard to turn the decline around. We have observed strong lack of independent distributor recognition.

Optavia – Medifast in Facts and Figures

Facts and figures as of the day of publication of this article:

  • Business for Home rating: A+
  • Current Business for Home Momentum Rank: 70 out of the 900+ world-wide network marketing companies in the BFH database.
  • Similarweb Rank: 61,126 globally, which ranks it 31 out of the 900+ world-wide network marketing companies in the BFH database.
  • Optavia – Medifast has 0 reviews on Business for Home, which ranks it at position 377 out of the 900+ world-wide network marketing companies in the BFH database.
  • Number of Recommended Distributors: 0
  • Business for Home Pageviews: 18,555
  • CEO of Optavia – Medifast: Daniel R. Chard
  • Company location: United States

Data provide by the proprietary Business for Home Intelligence Engine

(article continues below)

Why Optavia is downgraded to a Business for Home A-grade

There are various reasons contributing to a lower rank, such as incomplete information, sparse press releases, lack of transparency, lack of presence of top earners and top leaders, and distributor and social media influencers visibility.

Incomplete Information

Business for Home relies on comprehensive, factual, and substantiated information to accurately assess a company. However, the information shared by Optavia – Medifast appears to be either fragmented or unsubstantiated, adversely affecting its credibility for network marketing prospects.

Sparse Press Releases

Regular and informative press releases and success stories are vitally essential to keep the wider industry abreast of the sales force achievements and decisions. Missing out on this, Optavia – Medifast loses the chance to directly communicate its progresses with prospects.

Absence of Top Earners and Top Leaders visibility

Visible successful (top) earners are vital to any Network Marketing company. They serve not just as inspiration for prospects, but also proof of the company’s success. With a noticeable lack of top earners, Optavia – Medifast is missing out on a key aspect of its appeal.

Distributor Presence

The lack of strong presence in the industry by Optavia – Medifast’s distributors compared to Triple A grade companies adds to its challenges. A visible robust distribution network is vital to make the products more accessible and visible to consumers. Companies sharing consistently success stories are getting the eyeballs on their business opportunity.

How Optavia – Medifast could improve their visibility

Publishing success stories and company press release offer several advantages for Optavia. Here are some of the key advantages of publishing success stories and links to several high performing articles from different companies as examples of a shining marketing strategy anno 2023 :).

Inspiration Motivation, Credibility and Trust

Success stories serve as sources of inspiration and motivation for others. When people read about others who have overcome challenges and achieved their goals, they are often motivated to pursue their own aspirations. They can enhance your credibility and build trust with your audience. Real-life examples of achievements provide evidence that your strategies, products, or services are effective and can deliver results.

Social Proof and Differentiation:

Success stories provide social proof that your offerings have been valuable to others. Potential customers or clients are more likely to engage with your products or services if they see that others have benefited from them. In competitive markets, success stories can set you apart from competitors. Demonstrating your track record of achieving results can give you a unique selling point.

Overall, success stories and press releases have the power to inspire, educate, and foster connections. Whether in the business, personal development, or social spheres, sharing stories of achievement can bring about positive change and growth in Network Marketing.

Optavia – Medifast Conclusion

Based on the information provided by Business for Home, it seems that Optavia – Medifast has the potential to generate decent income for an independent distributor.

However, their limited Network Marketing transparency suggests caution when evaluating the company’s profitability for a Network Marketing Professional. The company seems to have a strategy like Network Marketing company Melaleuca:

“Do not talk about the Network Marketing opportunity, focus on the products.”

That seems not to work to well anymore.

The post Optavia – Limited Network Marketing Visibility Leads To Decline? appeared first on Direct Selling Facts, Figures and News.

Source:: https://www.businessforhome.org/2023/11/optavia-limited-network-marketing-visibility-leads-to-decline/

Optavia-Medifast's revenue fell 34.7% to $296 million in Q2 2022, from $1.6 billion annually.

India's direct selling industry, including MLM companies, grew 12% in 2022-23 with a Rs 21,282 crore turnover, driven mainly by wellness products.

Title:

Content:     The Economic Times daily newspaper is available online now.

    Direct selling industry grew 12% in 2022-23, crosses Rs 21,000 crore in turnover: IDSA

    Synopsis

    Indian Direct Selling Association and Kantar's report revealed a 12% industry growth to Rs 21,282 crore turnover. The sector aims to strengthen with government support, distinguishing from fraudulent schemes through regulatory amendments.

    India’s direct selling industry grew over 12% year-on-year in 2022-23, clocking an overall industry turnover of Rs 21,282 crore, an annual survey report released by the Indian Direct Selling Association (IDSA) and compiled by market researcher Kantar said on Wednesday.

    The report noted that the sector grew 8.3% by CAGR in the four-year period between 2019-20 and 2022-23.

    According to the report, wellness and nutraceutical products contributed 73.5%, while cosmetics and personal care accounted for 11.3% of the industry’s overall turnover. The number of active direct sellers touched around 86 lakh from 84 lakh in 2021–22, the survey said.

    Vivek Katoch, chairperson of IDSA, said in a statement: “The direct selling industry is poised to strengthen further in the years to come on the back of a promising regulatory framework by the government.”

    India ranked 11th in the global direct selling ranking in 2022, up from 15th in 2019.

    Direct selling companies sell to consumers through direct-seller members and not through retailers. Amway, Oriflame, Herbalife and other direct selling companies have been pushing for tighter regulation and clarity from the government, to differentiate them from multi-level-marketing ponzi companies.

    Mid last year, the consumer affairs ministry modified the Consumer Protection (Direct Selling) Rules, 2021, through a notification, to distinguish between fraudulent pyramid and money-circulation schemes and legitimate, direct-selling players. IDSA executives have said further clarity is needed in the definition of 'network of sellers'.

    (You can now subscribe to our Economic Times WhatsApp channel)
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Traditional direct selling companies like Avon and Tupperware have declined in recent years, with Avon's stock falling to $3 from $30 and Tupperware's dropping over 90%.

Title:

Content: 'Direct Selling' - Avon, Tupperware - Is Extinct

Nov. 18, 2022 11:25 AM ETHLF, MED, NTCO, NUS, PRI, TUP, USNA3 Comments
Robert FitzPatrick
394 Followers

Summary

  • Direct Selling became obsolete generations ago. So how is it that millions today get recruited for "income opportunity" in "direct selling" and billions are traded on "direct selling" stocks?
  • Avon and Tupperware are cited by "multi-level marketing," or MLM, promoters as "proof" that MLM, e.g., Amway, Herbalife, is "direct selling."
  • Usable data on actual income and churn rates of MLM "direct sellers," market saturation, and retail sales to actual customers are not provided.
  • In fact, Avon and Tupperware for years have been walking dinosaurs, still trying to do "person-to-person" sales to end-users with commodity products, while MLMs hype "unlimited" income.
  • The shrunken and devolved state of Avon and Tupperware today reveals that direct selling is extinct. MLM is not, and never was, direct selling.

It is generally accepted that "direct selling" was killed off generations ago by mass merchandising, big box stores, mail-order and then the internet, among other societal changes. The "Fuller Brush man" is long gone. No one's at home. No one wants or needs or has time for a "personal" salesperson. Everything's in stores or online. And, even when "direct selling" still lived, no one ever went into that tough line of work thinking they would get rich from it.

Yet, each year, millions are recruited, and pay thousands, for the "opportunity" to work as "direct sellers," with promises and expectations of "unlimited" income. The number involved today is many, many times greater than ever worked in that "extinct" field decades ago. Billions are being traded on Wall Street for shares of "direct selling" companies. How can this be?

In my book, Ponzinomics, the Untold Story of Multi-Level Marketing, I document the death of "direct selling" and the 1945 invention of "multi-level marketing," or MLM. I describe how "MLM" falsely assumed direct selling's revered old identity. I trace MLM from its Adam, a little California-based company called "Nutrilite," to today's "industry" led by Amway, Herbalife (HLF) down 64% YTD, Nuskin (NUS) down 31%, USANA Health Sciences (USNA) down 49%, Primerica, Inc. (PRI) down 13%, and Medifast (MED) down 45%. MLM's financial solicitations for consumers to become "direct sellers" have reached into – and led to losses for – virtually every household in America.

In the newly invented "MLM," the main source of revenue shifted from end-user customers to the salespeople themselves who are incentivized to "be their own customer" by buying their own products. Obviously, no one makes money purchasing their own inventory, but MLM offered a unique reason to do so – "unlimited" income potential.

No More Need to Knock on Doors

All MLM "direct sellers" can potentially gain "unlimited" income by recruiting an "endless" chain of other "direct sellers." No need to pound the pavement and get rudely rejected at front doors any more. Each "direct seller" on the chain has to meet a quota to "qualify" for future rewards from their recruits who, in turn, are their "own customers" and recruiters too, ad infinitum. The chain can grow without continuous personal effort. The qualifying quota can usually be met by just making a personal monthly purchase of inventory. "Commissions" on all these transactions, all the way down to the "last ones in," flow up the chain. In the MLM pay plan, most of the total commissions go to the top 1%. So, all new "direct sellers" try mightily to recruit (and buy) their way to those top ranks. Of course, only a tiny few can ever be at the top.

Some people argued this is a pyramid recruiting scheme, inherently unfair and deceptive, and a counterfeit of direct selling. In the design and the pay plan, bottom ranks – the vast majority – will inevitably lose. They said constantly adding salespeople in any area destroys profitable retail selling potential, if any exists to start with. They cited data on 90-99% loss rates and huge churn rates among new "recruits" and asked, where are the retail "customers"?

While offering no data on retail customers or salespeople losses or market saturation, MLM promoters offered "proof" that MLM is direct selling by pointing to two long-established and respected direct selling companies in their ranks, Avon and Tupperware (TUP). Both companies were members of the Direct Selling Association, DSA, and both were "direct selling" icons, Avon for its "ladies" and Tupperware for its "parties." To any pyramid scheme accusations, MLM promoters indignantly countered: "Are you calling Avon and Tupperware pyramid schemes?"

Walking Dinosaurs

The truth for both companies is very different from the MLM-spin. Avon and Tupperware used to have differentiated products and real consumer demand. Their salespeople made money from their own retail sales. But moving into the 21st Century, Avon and Tupperware became walking dinosaurs, vestiges of the extinct era of "direct selling." They were still trying to base their businesses on their historical brands and on person-to-person retail sales to real customers, as direct selling companies always used to do.

Despite MLM's citing Avon and Tupperware, and thereby bestowing legitimacy on the "MLM" members of the Direct Selling Association, deep differences between those icons of the old era and MLM burst into public view in 2013-14. The two companies publicly quit the Direct Selling Association, charging ethics violations and DSA-member connections to pyramid schemes.

Avon's Long Good-Bye

Avon had been a true direct seller for decades before MLM was invented. But as the door-to-door model faded, Avon began a long decline. In 2000, Avon began shifting its focus to "incentivizing" salespeople to recruit more salespeople and getting them to buy inventory, MLM-style. In 2009, during the Great Recession, Avon ran its most expensive ad in history, on television during the Super Bowl. The ad never mentioned any Avon products! It only solicited "salespeople." Still, global revenue dropped continuously over the next 10 years. Avon stock value fell from over $30 to just over $3.

Finally, Avon split off its faltering North American business and sold it to the Korean company, LG Household & Health Care. Avon claimed to have 250,000 sales representatives in North America. The remaining global business was later sold to the Brazilian MLM, Natura (NTCO) down 50% YTD, which also owns the retailer, Body Shop. Though Avon global was much larger, Avon shareholders traded 3 shares of Avon for just one in Natura.

The Korean-owned segment of Avon in North America is now classic MLM, selling the proverbial MLM "income opportunity" along with "health" supplements, make-up, jewelry, clothing, scented candles, even toothpaste.

On the Canadian Avon website, Avon promotes the "income opportunity," urging prospects in large bold black type: "Think big. Sell Avon part-time, full-time, you decide how much! It’s your business, your way!"

A disclosure (legally required in Canada, but not in the USA) appears midway down a long webpage in tiny, barely visible gray lettering: "The 2020 earnings of a typical Avon Leadership Representative was between $0 and $2,620 in commissions and bonuses." That's $0 to $50 a week, before subtracting all costs! And the "disclosure" does not break out how much of that tiny return comes from personal sales or the "downline."

Avon quietly rejoined the Direct Selling Association. The Brazilian company, Natura, which took over Avon's global business in 2020, has lost over 60% of its stock value in the last year.

Tupperware on the Brink

Tupperware was one of the first "party plan" companies, which are technically a small subset of MLM. They employ an "endless" recruiting chain, but are more rooted in retail sales transacted at "parties." Tupperware used to have a popular brand with innovative, differentiated products. But, as true direct selling began to disappear, Tupperware went into decline. It added MLM-type "health and beauty" commodities to bolster recruiting appeal but then deleted them. This year, it began also selling its products in Target department stores. Its kitchen-related goods are generally not distinct from other brands. A 10-months "Income disclosure" for Canada (not published in the USA) showed that half the "party planners" were classified "inactive," earning less than $30 for the period on average. 94% of the "active" ones reportedly received about $12 a week on average, before expenses.

In the last 5 years, the stock value of Tupperware has dropped over 90%. Its latest financials warned investors the company may violate loan agreements, setting off speculation Tupperware might declare bankruptcy.

The shrunken and devolved state of Avon and Tupperware, the most famous brand-icons of "direct selling," makes citing them as a defense of "multi-level marketing" as extinct as their old business model.

This article was written by

394 Followers
Robert L. FitzPatrick is the author of the new book, Ponzinomics, the Untold Story of Multi-Level Marketing (2020),the first comprehensive history and analysis of the "MLM" phenomenon, addressing its political influence, propaganda techniques and use of cult persuasion. FitzPatrick is an expert in examining and revealing deception and fraud in Ponzi schemes, pyramid schemes and bogus home-based businesses. He served as expert or consultant in more than 30 court cases involving pyramid schemes and multi-level marketing. He is co-author of False Profits (1997), an examination of the values and beliefs that support the delusions of pyramid schemes. He was featured on NBC Dateline, ABC World News, and CBS 60 Minutes, the documentary film, Betting on Zero and the podcast, The Dream.He has been quoted in many newspapers around the world, including the New York Times and Wall Street Journal. His booklet, Pyramid Nation, has been translated to Chinese and used by government regulators in writing China's first laws on pyramid schemes. His booklet, "The 10 Big Lies of Multi-Level Marketing", has been translated into four languages and posted on numerous websites. His White Paper, "The Main Street Bubble", which details the extensive influence-buying of the direct selling industry was featured in a CNBC Documentary, Selling the American Dream. In 2005, he delivered a seminar to in Colombo, Sri Lanka to central banking representatives from that country as well as India, Bangladesh, Bhutan, Maldives and Nepal. Robert FitzPatrick has developed informational resources for consumers, journalists, academics and regulators including a multi-media PowerPoint presentation and a statistical analysis of the losses suffered by participants in pyramid selling schemes. He also published a widely read booklet on the landmark federal case brought against the Amway Corporation. He is a expert network member of GLG Research, and Coleman Research Group, as well as other networks of experts who are referred to clients for consultation, speaking and report writing. In this capacity, he has provided expert consultation to financial many analysts who sought information about multi-level marketing companies and pyramid and Ponzi schemes. Robert FitzPatrick co-founded and serves as president of Pyramid Scheme Alert, the first international organization to expose and prevent pyramid scheme fraud. He personally responds to hundreds of consumer and news media inquiries each year. He has served as consultant and expert witness for Attorney General or State Attorney offices in four states, the US Dept. of Justice, and in numerous cases involving distributor fraud and pyramid schemes. Robert FitzPatrick is not an investor in multi-level marketing companies. He has never owned and never plans to own stocks of multi-level marketing companies. He has never been compensated based on any stock's performance. He does not offer investment advice and he is not an attorney.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This article is for educational purposes only. It discusses fundamentals of the "direct selling" business model and the evolution of "multi-level marketing."

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Avon and Tupperware left the Direct Selling Association in 2013-14, and Natura, Avon's owner, lost 60% of its stock value in a year.

Mary Kay, a well-known MLM company, reported a decline in sales to $2.5 billion in 2022, with a business model reliant on recruiting new sellers.

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These Women Are Selling Mary Kay Makeup From Bomb Shelters In War Torn Ukraine

Following

As the country’s war with Russia rages on, thousands of Ukrainian women have turned to the multi-level marketing company’s pink-packaged offerings to support their families.

By Lauren Debter, Forbes Staff

In the weeks following Russia’s invasion of Ukraine in February 2022, Marichka Lukyanova was inundated with messages from family and friends checking in to make sure she and her two children were safe from the air strikes in Lviv, where she lives. They were safe, luckily, but Lukyanova feared that her business selling Mary Kay cosmetics would be one of the casualties of war.

“I said to myself, Marichika, who will need your cosmetics if there is a war in your country?” recalled Lukyanova.

But one message surprised Lukyanova: Even in those early weeks of the war, one of her clients wanted to buy more Mary Kay facial cream before she ran out. “She did not want to age, even if rockets were flying overhead.”

American multi-level marketing company Mary Kay has shown surprising staying power during the war, with a growing Ukrainian salesforce of an estimated 70,000 women hawking its makeup, even if it means navigating frequent air siren alarms, shelling and blackouts. According to interviews with 16 people selling Mary Kay products on the ground, the cosmetics have become a lifeline for some looking to support their families or make extra money as Ukraine’s economy has suffered from the war.

“For many, it is the only source of income. Many now have husbands, brothers or children fighting,” said Elena Krivchenkova, 58, who has been selling Mary Kay products since the 90s when the company first launched in Ukraine. “It is a way to distract themselves from the horror of what is happening.”

But it’s been tough going, and the salespeople have been faced with a war-torn economy and double-digit inflation — skincare and cosmetics sales in Ukraine fell 13% to $189 million last year, according to GlobalData — along with the challenges inherent in Mary Kay’s business model.

Like other multi-level marketing companies, Mary Kay relies on individual people not just to sell its products to their relatives, friends or others in their social circle, but to recruit them to sell the products, too. There is often an intense pressure to recruit because of the pay model: Consultants, as Mary Kay calls them, make more money when they recruit new people, and their recruits recruit new people. Most people make little or no money working for a multi-level marketing company, warns the Federal Trade Commission.

"They are not helping,” said Robert FitzPatrick, a critic of multi-level marketing companies who has researched the industry for more than two decades. He noted that these types of companies can prey on people who are desperate, “selling themselves as the last best hope” but not delivering, he added.

Mary Kay itself has suffered from skepticism about its business model: Sales worldwide fell to $2.5 billion in 2022, down from $3.6 billion five years earlier, according to Forbes’ list of America’s largest private companies.

“We converted the shelter into a beauty salon.”

Tatiana Korniychuk

“Like the rest of the world, we continue to actively monitor the situation in Ukraine,” said Mary Kay spokesperson Crayton Webb. “Our leadership in Ukraine is actively engaging with employees and the independent sales force, doing everything they can to ensure their safety and supporting the viability of the business.”

Dallas-based Mary Kay, famous for giving out pink Cadillacs to its top salespeople, arrived in Ukraine three decades ago, where it found a burgeoning workforce of women eager for income. While it has a strong presence there, Russia remains an even bigger market — its fifth largest — with 180,000 consultants. But unlike major brands like Starbucks and McDonald’s and other prominent multi-level marketing companies like Herbalife and Amway that closed up shop in the country after the invasion, Mary Kay still operates there. It has had to traverse a tangle of sanctions by staying.

“We have many Independent Beauty Consultants in Russia who also rely on Mary Kay, in many cases, for their livelihood. Again, we remain committed to our mission,” Webb said, adding the company ensures “complete adherence to all laws and sanctions.”

Most of the Ukrainian consultants that Forbes spoke to say they oppose Mary Kay’s decision to remain in Russia, but seem resigned to it. “I try not to dwell on it because I cannot influence it,” said Krivchenkova. “In Russia, there are many women who have survived only thanks to their Mary Kay business. They did not want this war.”

The company’s operations ground to a halt in Ukraine after the war started because of the intense bombing in Kyiv, where Mary Kay’s main warehouse is located. In those first few months of war, consultants resorted to selling whatever products they had on hand to support themselves and their families. Some consultants have hosted charity beauty marathons where a portion of sales are donated to the war effort.

Tatiana Korniychuk, 50, began hauling her Mary Kay products into the bomb shelter during air alerts, letting women try new cosmetics while they waited for the time to pass. “We converted the shelter into a beauty salon,” said Korniychuk, who lives in Zhytomyr.

Maryna Chaikivska, 29, sold tubes of eye cream, cleanser and charcoal face masks she had stocked in her office after the war broke out. She said that netted her about $1,000 a month, paying the bills for six months. Her husband had lost his job at a pharmaceutical company after bombing in Kharkiv severely curtailed production capacity and was heading to the frontlines to put his medical degree to use treating injured soldiers.

“Mary Kay brought colors to a difficult period of life.”

Olga Boysyan

“There was no other way out,” said Chaikivska, who continued to pitch Springtime skincare regimens and bottled-up concoctions that could help combat stress-induced breakouts and wrinkles to her 1,500 Instagram followers.

Chaikivska, who lives in Lviv, used to keep some $15,000 worth of inventory on hand, but now she worries about something happening to it. She heard about another consultant who lost all her inventory after her house was hit by explosions and went up in flames. Now she keeps a third of that amount of inventory on hand.

Three months into the war, Mary Kay began delivering the cosmetics it had in its partially destroyed Kyiv warehouse. By late 2022, it was slowly beginning to ship new products as its consultants rebuilt their customer bases after millions fled the nation in search of safety. More than six million Ukrainians remain outside the country’s borders. (Mary Kay’s Webb says the company shipped products “as soon as possible.”)

That’s had a dramatic impact on businesses built on top of the multi-level marketing company. Because so many customers and consultants have left Ukraine, Elena Krivchenkova said that the incomes on her 2,000-person team have fallen by an average of 30% during the war.

Consultants have also been impacted by rolling blackouts, which make it difficult to get online to pitch products. Six months into the war, Natalia Sokratova, a 35-year-old former teacher, bought a generator so she could continue posting to Instagram, hosting online tutorials and checking in with her team. Others have bought SIM cards from different wireless providers, so that if one provider struggles to provide Wi-Fi they can try another provider.

Some have struggled to make much money from selling Mary Kay cosmetics. Natalia Marynets, a trained lawyer who began selling in 2023, spends two or three hours a day on Mary Kay and has recruited 16 consultants, but still only makes about $200 a month.

Mary Kay did not respond to questions about how much the average consultant makes in Ukraine. It does not release earnings figures except in Canada, where it says the average consultant makes $200 a year.

For many of the other women Forbes spoke to, the additional income, however incremental, wasn’t the only benefit of working as a Mary Kay consultant during the war.

“Mary Kay brought colors to a difficult period of life,” said Olga Boysyan, a former pharmacist who joined the company last year. She told Forbes selling cosmetics is a welcome distraction when she’s waiting to hear from her husband and son, who are serving in the army.

“I have an opportunity to distract our women from negativity and at the same time give them a good mood,” Marynets said. “Even during the Second World War, red lipstick was like an antidepressant for women.”

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The company's average consultant in Canada makes only $200 a year, raising concerns about the MLM business model's sustainability.

The COVID-19 pandemic has impacted the MLM industry, with some companies adapting and others struggling.

Title:

Content: In the past year or two, Apple's "new privacy policy" has become an absolute hot word in the field of mobile marketing.
Since the official launch of the Apple ATT framework, whether it is the pattern order of the industry or the delivery strategy of marketers, a continuous and far-reaching change is taking place in the field of mobile marketing.
However, in addition to this industry internal factors, during the first half of this year, under the influence of a series of macro factors such as the economic downturn and the market cooling after the COVID-19 epidemic, the changes in this field also showed more performance.
AppsFlyer, the global marketing measurement and experience management platform, has released its 15th edition of the Advertising Platform Comprehensive Performance Report.
In terms of media communication, Dr. Wang Wei, General Manager of AppsFlyer Greater China, interpreted and looked forward to the current development of the mobile advertising industry based on the data performance recorded in the report in the first six months of this year.
Among them, "the market downturn, the future can be expected" has become the main thrust of this report.
Overall, as the most special change this year, Dr. Wang Wei said that compared with the first quarter of this year, the average budget of global mobile app marketing fell by 12% in the second quarter.
He further stressed that "in the past list, we have seen more internal factors, such as the impact of the ATT framework on iOS in the industry."
At this time, we noticed that a lot of the iOS budget was shifted to Android.
So more is iOS down, Android up.
But in Q2 this year, both sides showed a decline due to external economic factors.
Based on this change, it is not difficult to find that the mobile marketing field has experienced an "unprecedented half year" at this stage, and it is also bringing greater pressure to the industry practitioners and the platform side.
However, in his view, although advertisers have become tighter and the budget for advertising platforms will shrink, as a response to this shift, some new opportunities have emerged.
For example, “Advertisers will also pay more attention to their own media that does not spend a budget … Whether it is doing UA or remarketing, in this place, the importance of their own media is increasing in an average sense. ”
As a reflection, as pointed out in the report, compared with the second half of 2021, owned media brought an 18% increase in activation volume to Android in the first half of 2022 (the increase of paid media was 2%).
On the iOS side, affected by the new privacy policy and a sharp increase in media costs (up 30%), the situation of turning to own media is naturally more.
There is also a significant gap in the number of media accounts in general: while paid media has increased by 3%, owned media has climbed by 25%.
Turn your perspective to the level of the market.
As the mobile advertising platform market pattern further reflects the trend of change, during this year, the gap between the "two super" first echelon platforms represented by Google and Meta and the subsequent "multi-strong" second echelon players is also shrinking - compared with the second half of 2021, Google Ads lost a small proportion of the activation market share in the first half of 2022.
At the same time, Meta Ads ’ ranking in the global power and scale list has slipped one place behind, and its activation share has fallen even more.
Of course, "for how strong, we can also see that the growth trend is different in different lists."
For example, TTFB had a high growth rate last year, and Q2 growth momentum has slowed this year.
This corresponds to the significant growth in ironSource and Mintegral in the last six months. ”
It is worth mentioning that Dr. Wang Wei also added that in the first half of this year, the report also witnessed the trend of continuous strength of Chinese advertising platforms.
He said that in the past few issues of the list, you can see a lot of Chinese advertising platforms, especially TikTok has been a rapid upward trend in the past few years.
However, during this year, Mintegral took over the baton, which has been a trend of rapid growth for more than a year, and reached an overall new high this year.
At the same time, "like SHAREit, Chuanyin, Xiaomi, VIVO, has been a frequent visitor to our leaderboard, and this year as a whole has reached a relatively high position · · This fully proves that from a global perspective, generally speaking, the United States advertising platform dominates the market situation is changing."
With the tide of Chinese advertisers, I think the proportion of Chinese advertising platforms in the global mobile advertising market will gradually expand. "
Based on the above changes, in terms of coping strategies, Dr. Wang Wei also gave some simple suggestions.
He said that in a more volatile industry situation, at present, in the field of mobile marketing, iOS, Android and game applications, non-game applications four have formed four micro-ecosystems.
As a reflection, this will mean that mobile marketers will be a more complex, but also more likely to form a differentiated marketing strategy, which will be different from the previous marketing thinking.
Therefore, with the continuation of the trend of change in the industry, practitioners can no longer do a solidified way to put the distribution strategy of the channel, and need to have a more dynamic, based on their own optimization ideas to build the channel combination.
On the other hand, he believes that practitioners also need to rethink marketing goals.
"The current industry trend is that the growth of new users is slowing at a large level, or the cost of acquiring new users will certainly continue to rise."
Under this premise, the simple pursuit of only one user growth target is certainly somewhat anachronistic.
I see advertisers paying more attention to more core user behavior in a more rational way.
Even from the perspective of monetization, they will pursue a relatively long-term way of refining operations.
I think this trend of course will make the whole entry threshold rise, not a particularly simple starting point.
However, to look at it from another angle, it will also increase the probability of everyone's marketing success.
Because it ’ s operating in a more scientific way, and eventually it may also gradually expand from the UA level to the operational and product design side, we ’ ll be more data-driven overall.
That would be a more sustainable development model, "he said.
"In the end, there is more to look for new opportunities in the downside."
There are two ways to deal with a downside cycle.
One is to lie flat or hibernate, which is a relatively negative way to cope.
Another is to actively look for new opportunities.
Because in this downward cycle or relatively large change cycle, many new opportunities will be reflected in it.
For example, the previous optimization method has not worked, if I can have some new optimization ideas before others, and then can achieve some good results, then this may also be a certain time window based on the innovation of the dividend period · · These moves in the past may be too obvious because the cumulative effect of the head is not a very good period.
But now, I think there are some directions worth trying.
When the old pattern is overturned, it is an opportunity for the new pattern to emerge, and at present, we are in the process of switching from old to new, and there are a lot of opportunities that have already appeared or are about to appear.
At this time, for those who are prepared, it may be a place full of opportunities and can go to search for gold.

The rise of online marketing has forced MLM companies to rethink their strategies, investing more in owned and paid media.

Some MLM companies, like Educational Development Corp, benefited from the pandemic due to increased home-based learning.

Title:

Content: Educational Development Corp.: Growth Risk Might Be Overblown

Moat Investing
1.46K Followers

Summary

  • EDUC is the exclusive US co-publisher of educational children's books produced by famous Usborne Publishing by leveraging multilevel marketing (MLM) strategy.
  • It has strong fundamentals, fair valuation, and a compelling growth story that is being ignored by the market.
  • We arrived at a target price of $12.4 to $14.6 without incorporating any future growth and expansion in operating margins.

Investment Idea

Educational Development Corporation (NASDAQ:EDUC) has an attractive value proposition, strong financials, and optionality of significant growth ahead due to structural changes caused by COVID. On top of that, the valuation is reasonable, and management has skin in the game (owns 23% of shares outstanding). For these reasons, we remain bullish.

Business Overview

EDUC is the exclusive US co-publisher of educational children's books produced in the UK by Usborne Publishing, and EDUC also exclusively publishes books through their ownership of Kane Miller.

The business operates in two segments:

Home Business Division (Usborne Books & More or "UBAM") -(95% of revenues) - This segment sells books through consultants directly to consumers using a multilevel marketing model (MLM). Consultants sell books by hosting home parties, social media, and hosting book fairs with schools and public libraries.

Publishing Division – (5% of revenues) - Sells books to bookstores, toy stores, and other retail outlets.

If you would like to get the gist of our thesis, you can watch our YouTube video below.

Value Proposition

The children's books market is very competitive and fragmented. There are more than 135 publishers of children's books in the US. EDUC is competing with Scholastic and Pearson, which have extensive resources to run marketing campaigns and are well-positioned in both online and offline distribution channels. Although EDUC has a little moat, they have some strengths to their business model that will allow long-term value creation.

They have an exclusive and long-term relationship with Usborne. Therefore, clients of the Usborne in the US must acquire their books via EDUC. Also, there is a consensus that Usborne books are high quality and among the industry's best.

Their sales are a function of the number of active sales consultants. Commissions paid to consultants are a variable cost, and they are only paid when sales are made. Although this makes SG&A grow as the top line grows, since it's not a fixed cost to the business, it allows EDUC to achieve significant operating leverage. Also, it allows them to scale quickly and have flexibility.

Direct sales strategies like multilevel marketing are commonly referred to as pyramid and Ponzi schemes. However, the table below shows that it does work sustainably and increases revenue growth over the long run despite the negative press.

Source: S&P Capital IQ

Why might EDUC be mispriced?

There are multiple factors. Firstly, it's a micro-cap. This usually means there is limited analyst coverage, and due to the stock's illiquidity, there is low institutional interest. These factors, coupled with others, leave the company under the market radar despite its business is doing well and has promising perspectives.

Second, there is negative press around the MLM business models. The MLM model deployed by EDUC is vastly different from dodgy tactics used by other players. For example, many MLM models require the seller to purchase the inventory from the company before selling. However, this reduces the risk for the company and puts extra pressure on the seller, which can be left with expensive inventory that cannot be sold or returned. In the case of EDUC, there is no requirement to hold inventory.

Third, markets might be believing that the business's tailwinds are temporary due to COVID. Amidst Covid, schools were closed, and parents were working from home; this drove home-based learning and benefited EDUC. Additionally, unemployment rates soared, and many were left looking for work. This allowed EDUC almost to double its consultant count from 33 to 60 thousand. We believe the post-pandemic work from home trend will persist, supporting their sales. Furthermore, the active consultant might not fall back to the pre-pandemic level as these roles are usually part-time work which fits nicely with the trending gig economy.

The evidence speaks louder than words

There are also some clues from the management that revenue generated amidst pandemics might be sticky.

Management increased its dividend per share from $0.20 to $0.32. A dividend increase should be seen as a signal that a business is in solid financial shape and management is confident about its future.

Management increased capital expenditures to $4.15 million from $0.64 in 2020. This expenditure was primarily associated with equipment purchases to increase daily shipping capacity. These are some early signs that management is expecting positive growth going ahead. Additionally, this also improves their margins as amidst Covid they paid a premium for extra shifts.

EDUC has increased its inventory; the inventory build-up is approximately 60% of its total assets. This has been in anticipation of an increase in the sales, as it takes a four to six-month lead-time to have a title printed and delivered to them.

Source: Koyfin

Value Investing Approach: Asset Value

To calculate the actual asset value of the company, we tried to replicate the business from scratch. Therefore, below you will find the last reported balance sheet, where we have made some adjustments.

The value of the land recorded on books was $4.1 million. They own a 40-acre complex at 5402 South 122nd East Ave, Tulsa, with 400,000 square feet of office and warehouse space. They also own a facility located at 10302 East 55th Place, Tulsa, that has 105,000 square feet of usable space. According to our channel checks with realtors, the average price per square foot of their land lies between the range of $100 to $115. To remain conservative, we took the average price square feet to be $85. Therefore, we estimate the value of its land to be $42.9 million.

They also have a network of around 55,000 active consultants. To construct such a network from scratch is both costly and time-consuming. We estimate the replication cost of this network to be around $27.5 million ($500 per consultant). This is also roughly five months of sales commission cost incurred by EDUC in the fiscal year 2021.

The rest of the items are taken on book value.

Based on the above adjustment, we arrive at the total asset value of 106.7, and the fair value per share to be $12.4

Source: Moat Investing

Value Investing Approach: Earnings Power Value

This approach allows us to value EDUC without incorporating any growth. Here, we consider the business's historical figures (last five years) to get the normalized earnings and operating margin. To calculate the sustainable earnings, we smoothed out the company revenues for the previous five years to $131 million and then calculated the firm's average operating margin (6.5%) to arrive at the sustainable Operating Income of $8.5 million.

We add back the expenses typically spent on growth, and we estimate around 4.5% of sales is spent on growth marketing, i.e., promotion, advertisement, and discounts. Hence, we add this back as this expense is not required if the firm was not aiming to achieve growth.

We assume the normalized tax rate to be 26% and the estimated cost of equity at 9%. Therefore, we estimate Earning Power Value of the operating business to be $134 million. To that, we add the non-operational cash ($1.8 million), and we subtract long-term debt (10.8); we arrive at an implied market cap of $125.6 million or $14.6 price per share, with 12.3% upside potential, without incorporating any growth or expansion in operating margins.

Source: Moat Investing

Risks to Our Investment Case

  • Stringent regulation regarding MLM companies. For instance, the requirement to treat consultants as employees. This could have implication when it comes to taxation, wages paid and welfare concerns for workers. This could, in turn, shrink the bottom line or, worse, business model tatters.
  • The most straightforward risk is consultants quitting or switching to find other employment as the US economy improves. However, within our valuation model, we have smoothed the growth of revenue in the last five years, which is a function of l consultants recruited. Even if there is some mean reversion in terms of consultants working with EDUC due to the COVID base effect, our thesis would be less impacted.
  • As highlighted earlier EDUC’s inventory level is a significant portion of its asset. Whatever reason they become unsalable (i.e., change in taste or controversy in terms of published content) could impact our valuation.
  • Oil prices have increased significantly since last year (see below). Shipping costs are amongst the most significant component of its COGS; further rise in oil prices (consequently increasing shipping cost) could make it difficult for EDUC to remain profitable.

Source: Trading Economics

Conclusion

EDUC has an attractive value proposition, strong financials, and optionality of significant growth ahead due to structural changes caused by COVID. On top of that, the valuation is reasonable, management has skin in the game (owns 23% of shares outstanding), and investors are not even paying for any future growth at current prices. For these reasons, we remain bullish.

This article was written by

1.46K Followers
We are a group of experienced investors that like to dig deeper into stocks to find growth stories at a reasonable price with strong economic moats. We also aim to conduct high-quality analysis by deep diving into valuations, key business drivers, risk/reward, and different future scenarios.
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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Best of the Best's earnings fell 57% in fiscal 2022.

Title:

Content: StockMarketWire.com - Weekly competitions organiser Best of the Best warned on performance as the pandemic-related demand softened following the end of the lockdown on 12 April.

Whilst still substantially higher than the pre-COVID comparative and the results delivered in FY 2020, profitability and earnings for fiscal 2022 are now anticipated to be 57% lower than what was reported for FY 2021, the company said.

'The new guidance the board is providing today for the year ending 30 April 2022 is [about] 62% below current market forecasts with a commensurate impact on the following financial year' the company said.

The warning comes as average weekly sales for the first 15 weeks of the new financial year fell 15% compared with the final 15 weeks of the prior financial year.

'However, should revenue trends improve, it can be expected that the reverse would occur and margins and profitability would increase materially due to the nature of the business model and the operational gearing,' the company said.

'It is worth noting that the summer months are typically a low point and there is a seasonal lull in customer engagement and revenue generation, which we expect to improve over the coming months,' it added.

Story provided by StockMarketWire.com

The pandemic led to a surge in demand for some MLM companies, like Nu Skin, whose stock tripled from March 2020 to June 2021.

Title:

Content: We've detected you are on Internet Explorer. For the best Barrons.com experience, please update to a modern browser.GoogleFirefox

Nu Skin’s Biggest Customer Base Is in China. Now It’s Accused of Spreading Covid.

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The Covid pandemic was good for the business of multilevel marketing firms like Nu Skin Enterprises, as furloughed workers tried to make ends meet by selling vitamins and skin creams from home. Salespeople swelled the bottom of Nu Skin’s marketing ranks, and its stock tripled in value from March 2020 to a June 2021 peak of $62, before sliding back to a recent $47.

Now Covid is a problem for the company in China, the nation where Nu Skin (ticker: NUS) gets its largest number of customers and more than 20% of its revenue. A...

Nu Skin generates over 20% of its revenue from China, its largest market.

Title:

Content: We've detected you are on Internet Explorer. For the best Barrons.com experience, please update to a modern browser.GoogleFirefox

Nu Skin’s Biggest Customer Base Is in China. Now It’s Accused of Spreading Covid.

  • Order Reprints
  • Print Article

The Covid pandemic was good for the business of multilevel marketing firms like Nu Skin Enterprises, as furloughed workers tried to make ends meet by selling vitamins and skin creams from home. Salespeople swelled the bottom of Nu Skin’s marketing ranks, and its stock tripled in value from March 2020 to a June 2021 peak of $62, before sliding back to a recent $47.

Now Covid is a problem for the company in China, the nation where Nu Skin (ticker: NUS) gets its largest number of customers and more than 20% of its revenue. A...

The pandemic has significantly impacted SMEs, with 85% experiencing a decline in profits.

Title:

Content: [Hong Kong economy] 85% of SMEs' profits fall by a quarter due to the epidemic, their profits fall by 31% or more
Commercial 12: 04 2021 / 10 / 28
Share:
Businesses are struggling to connect with overseas buyers offline, affecting their profitability. (AFP picture)
Companies have difficulty connecting with overseas buyers offline during the pandemic.
Euler Hermes today released a research report examining the impact of the pandemic on the profitability of large, medium and small businesses, as well as its outlook on the post-pandemic outlook.
Among them, 72% of respondents from large enterprises believe that the epidemic has negatively affected them.
The report gathered the views of 536 business leaders across 26 industries in the Asia-Pacific region.
Two of the biggest challenges for large companies to deal with the negative impact of the pandemic include: 1) stifling growth in overseas markets, and 2) difficulties in financing.
And 81% of respondents believe that profitability has decreased due to the impact of the epidemic, and profit decline 11% to 30% of enterprises accounted for 32%.
[UK Salaries] Covid-19 Affects Worker Salaries and Lower-income People in the UK Increase Most Significantly
The profits of 85% of SMEs also fell due to the epidemic, and one quarter of them believed that profits fell by 31% or more.
The three sectors with the largest declines, whether large or small, were the same (see table below).
The three most profitable industries
Industry Large Enterprises Decrease (%) Small and Medium Enterprises Decrease (%)
Electronics 15 15
Food 14 13
Services 11 13
The survey also analyzed future export opportunities and found that most economies in the region are emerging from the epidemic faster than other regions and are recovering, with 51% of respondents saying they are confident about export opportunities in the next 12 months.
This is mainly due to unprecedented government support policies in many countries and the accumulation of household savings in developed countries.
The three sectors that are most optimistic about export opportunities are electronics (16%), chemicals (12%) and food (10%).
UK companies spend hundreds of millions to attract workers
Small and Medium Enterprises Strategy for the Next 12 Months
Strategy Percentage (%)
Growth within existing lines of business 38
Opening up new markets and new clients27
Reduce losses by improving credit and risk management 20
There are three primary tasks for enterprises (see table above).
Euler Hermes Asia Pacific CEO David Fung believes that companies should use the knowledge and data of credit experts to develop their development plans while minimizing risk.
Its commercial director, Matthew Wells, added that with the phasing out of government support measures, global bankruptcies are forecast to rise 15% in 2022 after two consecutive years of decline.
[Advertisement Opportunities] Enterprise Reset Advertising Propaganda Estimates Up to 40% Increase in Bank and Insurance Ad Spending
Editor-in-Chief: Ma Yi-wen
Follow the latest financial news analysis, like hket Facebook

72% of large enterprises reported a negative pandemic impact on their profitability.

Title:

Content: [Hong Kong economy] 85% of SMEs' profits fall by a quarter due to the epidemic, their profits fall by 31% or more
Commercial 12: 04 2021 / 10 / 28
Share:
Businesses are struggling to connect with overseas buyers offline, affecting their profitability. (AFP picture)
Companies have difficulty connecting with overseas buyers offline during the pandemic.
Euler Hermes today released a research report examining the impact of the pandemic on the profitability of large, medium and small businesses, as well as its outlook on the post-pandemic outlook.
Among them, 72% of respondents from large enterprises believe that the epidemic has negatively affected them.
The report gathered the views of 536 business leaders across 26 industries in the Asia-Pacific region.
Two of the biggest challenges for large companies to deal with the negative impact of the pandemic include: 1) stifling growth in overseas markets, and 2) difficulties in financing.
And 81% of respondents believe that profitability has decreased due to the impact of the epidemic, and profit decline 11% to 30% of enterprises accounted for 32%.
[UK Salaries] Covid-19 Affects Worker Salaries and Lower-income People in the UK Increase Most Significantly
The profits of 85% of SMEs also fell due to the epidemic, and one quarter of them believed that profits fell by 31% or more.
The three sectors with the largest declines, whether large or small, were the same (see table below).
The three most profitable industries
Industry Large Enterprises Decrease (%) Small and Medium Enterprises Decrease (%)
Electronics 15 15
Food 14 13
Services 11 13
The survey also analyzed future export opportunities and found that most economies in the region are emerging from the epidemic faster than other regions and are recovering, with 51% of respondents saying they are confident about export opportunities in the next 12 months.
This is mainly due to unprecedented government support policies in many countries and the accumulation of household savings in developed countries.
The three sectors that are most optimistic about export opportunities are electronics (16%), chemicals (12%) and food (10%).
UK companies spend hundreds of millions to attract workers
Small and Medium Enterprises Strategy for the Next 12 Months
Strategy Percentage (%)
Growth within existing lines of business 38
Opening up new markets and new clients27
Reduce losses by improving credit and risk management 20
There are three primary tasks for enterprises (see table above).
Euler Hermes Asia Pacific CEO David Fung believes that companies should use the knowledge and data of credit experts to develop their development plans while minimizing risk.
Its commercial director, Matthew Wells, added that with the phasing out of government support measures, global bankruptcies are forecast to rise 15% in 2022 after two consecutive years of decline.
[Advertisement Opportunities] Enterprise Reset Advertising Propaganda Estimates Up to 40% Increase in Bank and Insurance Ad Spending
Editor-in-Chief: Ma Yi-wen
Follow the latest financial news analysis, like hket Facebook

MLMs often target young women for recruitment, as seen with companies like LuLaRoe.

Title:

Content: Cult Classics

You need to watch the most compelling cult docuseries on Amazon Prime ASAP

“Oh my god, I’m in a cult”

What do you think of when you think of cults? Drinking kool-aid, singing hymns, maybe some weird mind control?

Well, while those elements certainly are present in several cults, some of the largest active cults are much more difficult to identify. In fact, you may not see them as cults at all. That’s what makes them so dangerous.

This 2021 four-part docuseries, now streaming on Amazon Prime, breaks down what looks like a fantastic opportunity for women and reveals the terrifying control that lies within, all wrapped in the guise of comfortable leggings.

LuLaRich follows the unstoppable rise and inevitable fall of clothing multi-level marketing company (and alleged pyramid scheme) LuLaRoe. Begun as a well-intentioned way for young women to start their own businesses, LuLaRoe quickly spiraled into a web of manipulation, nepotism, and shady legal practices.

Mormon couple Mark and Deanne Stidham founded LuLaRoe, and from the get-go, the pair established their family as unlike any others. When Deanne married Mark, she had seven children, four biological and three adopted from Romania. Mark had four children of his own. Together Mark and Deanne adopted three other children, bringing the total up to 14. (While having 14 kids is unusual enough, what is even odder is that two of their adopted children eventually married each other.)

When their startup company, which sold comfortable and loud-patterned clothes, took off in a major way, they wanted to support their family. So, they hired their children and relatives in high-powered positions.

Altogether, this is all a recipe for catastrophic growth. What makes LuLaRoe a likely pyramid scheme is how they made money not by selling goods but by recruiting others to be distributors. The company grew exponentially, and the executives weren’t able to keep up with the growth.

But what makes LuLaRoe a cult? Well, those involved are working to please and seek the approval of Mark and Deanne, even if that means selling breast milk to afford the startup package or getting a risky weight loss surgery at Deanne’s urging.

Sure, there’s no religious element to LuLaRoe (aside from the Stidhams’ Mormon teachings leaking into their business model), but that doesn’t mean they’re not a cult. Just one look at the loud, clashing patterns and huge parties run by Deanne’s nephew, and it’s clear this is a group that has complete financial control over its followers.

And that’s not all. LuLaRoe leaders urge everyone to make their social media page entirely about their business, promoting a lavish lifestyle to prove how successful they are. Every part of their life had to revolve around the company to make any profit. So, not only was LuLaRoe controlling its followers' financials, but they also had complete lifestyle control.

It’s clear Mark and Deanne didn’t set out to start a cult. They had only the best intentions, as their participation in LuLaRich underlines. But sometimes cults aren’t created; they just happen. And the worst impulses in the leaders’ personalities are brought out, whether that’s something deadly like a mass suicide or just profiting off a false idea of success.

Sure, LuLaRoe may not be your classic cult, but in a way, that’s what makes it even more insidious. Not many of us know someone who has packed up and moved to a reclusive commune, but people in multi-level marketing companies are everywhere. The line between a company and a cult seems to get blurrier by the day.

LuLaRich is now streaming on Amazon Prime.

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Women are targeted to join MLMs like Trades of Hope, where artisans can earn 3 to 6 times their normal regional income.

Title:

Content: Multi-level Marketing scheme "disguised as an advocacy organization" draws criticism

Here's another multi-level-marketing scheme to be aware of. It's called "Trades of Hope" and Hannah Alonzo describes it as an MLM scheme "disguised as an advocacy organization." Here's how the Trades of Hope website pitches the business to potential "partners" and "advocates" (that's what they call folks who join the MLM to sell merchandise and recruiting additional sellers for their downline):

"Create job opportunities for women leading their families out of poverty and human trafficking by shopping ethically made home decor!"

The company works with "Artisan partners" across the globe, who create the products that are then sold by folks who sign up for the MLM. Trades of Hope describes their relationship with the artisans:

We pay our Artisan partners 100% of their asking price (they set the price!) for a product order before you even see that product on our website! We are in a business partnership with them. Not a charity. Our Artisans receive 3 to 6 times what they would normally make in their region. The Fair Trade communities that are helping them get their product to market follow guidelines of checks and balances to give back, not just to the Artisan, but to their community as a whole as well. This includes things like wells, children's schools, education for adults, land, and developing homes. It is life changing. Fair Trade is about providing a living wage for those in extreme poverty and giving them a chance for a better life.

If the business just worked with artisans to sell their products to the public, I'd have no problem with it, and would actually see it as a positive thing. However, Trades of Hope doesn't simply support artisans—its business model is based on recruiting sellers who then recruit other sellers, which makes it a typical MLM. The recruitment page of the Trades of Hope website clearly states: "Enjoy The Rewards and The Partner Does All The Work!" The problem is, though, that very few people are actually "enjoying the rewards," as it's been shown time and again that 99% of people who participate in MLMs lose money.

Over on Reddit, in the terrific subreddit r/antiMLM ("Stop MLM schemes from draining your friends dry. Multi Level Marketing (MLM) schemes are a drain on our society. Its participants either build the pyramid taller or get squashed by it.") I found some interesting discussions of Trades of Hope. Here's some insight from a former member:

I escaped from them. It's basically an MLM. You don't need to keep product on hand, you have a personal seller website and you pressure people to host parties. Their schtick is that they sell items made by people in developing countries so they use a lot of guilt and religious crap to pressure people into buying the items. We were told to post things on Facebook like "help this family out of poverty one bracelet at a time" etc. I finally noped out after realizing that their method is stupid and sustainable development can be found in ways that don't require me to guilt my friends and family into having stupid online parties. As MLMs go, the buy in is $150 so people don't lose their houses over this. The website is $12 or $13 a month. So not like lularoe requiring $4000+ buy ins but it's def an MLM, there's a lot of pressure to recruit and maintain a downline.

If you want to learn more about Trades of Hope, Hannah Alonzo recently posted a terrific deep dive into the company. Her analysis includes a critique of the company's recruitment structure, as well as critical commentary on how the entire operation oozes with "White savior complex."

MLMs often recruit individuals with irrational thinking using psychological manipulation.

Title:

Content: Usually, speaking about the financial pyramid, it is understood the involvement of people in business, where the basis of income is the attraction of new participants with a financial contribution, said Roman Sidorchuk, Professor of the Department of Marketing at Plekhanov Russian University of Economics, to the correspondent of IA REGNUM.
Pyramid
“For this kind of participation, mainly“ recruited ” people with a “disturbing ” psyche, who are dominated by an irrational type of thinking.
Given the fact that in these circumstances, behind the proposals of the organizers there is always a deception in the involvement of the participant, it is impossible to talk about marketing, which is usually guided by certain ethical standards (for example, the ethical code ESOMAR, the European Community of market researchers and public opinion).
Here we should talk about the methods of social engineering, when the goal is not to meet the needs of the consumer, as in marketing, but the psychological manipulation of people in order to commit certain actions.
In this regard, the methods of this kind of manipulation will constantly change, adapting to the interests of the potential audience.
The use of computer games is a convenient format for manipulation.
Moreover, people who are often fixated on computer games experience depressive and restless states, and become more malleable to the external influence of the gaming community, ” the expert believes.
As reported IA REGNUM, in Russia there is a new type of financial pyramids, said the head of the Department of combating unfair practices of the Central Bank of the Russian Federation Valery Lyakh.
See also: Bank of Russia warned about the emergence of gaming financial pyramids

Individuals with disturbing psyche, depression, restlessness, and computer game players are more susceptible to MLM recruitment.

Title:

Content: Usually, speaking about the financial pyramid, it is understood the involvement of people in business, where the basis of income is the attraction of new participants with a financial contribution, said Roman Sidorchuk, Professor of the Department of Marketing at Plekhanov Russian University of Economics, to the correspondent of IA REGNUM.
Pyramid
“For this kind of participation, mainly“ recruited ” people with a “disturbing ” psyche, who are dominated by an irrational type of thinking.
Given the fact that in these circumstances, behind the proposals of the organizers there is always a deception in the involvement of the participant, it is impossible to talk about marketing, which is usually guided by certain ethical standards (for example, the ethical code ESOMAR, the European Community of market researchers and public opinion).
Here we should talk about the methods of social engineering, when the goal is not to meet the needs of the consumer, as in marketing, but the psychological manipulation of people in order to commit certain actions.
In this regard, the methods of this kind of manipulation will constantly change, adapting to the interests of the potential audience.
The use of computer games is a convenient format for manipulation.
Moreover, people who are often fixated on computer games experience depressive and restless states, and become more malleable to the external influence of the gaming community, ” the expert believes.
As reported IA REGNUM, in Russia there is a new type of financial pyramids, said the head of the Department of combating unfair practices of the Central Bank of the Russian Federation Valery Lyakh.
See also: Bank of Russia warned about the emergence of gaming financial pyramids

Young people and irrational thinkers are often targeted by MLMs through emotional manipulation.

Title:

Content: Usually, speaking about the financial pyramid, it is understood the involvement of people in business, where the basis of income is the attraction of new participants with a financial contribution, said Roman Sidorchuk, Professor of the Department of Marketing at Plekhanov Russian University of Economics, to the correspondent of IA REGNUM.
Pyramid
“For this kind of participation, mainly“ recruited ” people with a “disturbing ” psyche, who are dominated by an irrational type of thinking.
Given the fact that in these circumstances, behind the proposals of the organizers there is always a deception in the involvement of the participant, it is impossible to talk about marketing, which is usually guided by certain ethical standards (for example, the ethical code ESOMAR, the European Community of market researchers and public opinion).
Here we should talk about the methods of social engineering, when the goal is not to meet the needs of the consumer, as in marketing, but the psychological manipulation of people in order to commit certain actions.
In this regard, the methods of this kind of manipulation will constantly change, adapting to the interests of the potential audience.
The use of computer games is a convenient format for manipulation.
Moreover, people who are often fixated on computer games experience depressive and restless states, and become more malleable to the external influence of the gaming community, ” the expert believes.
As reported IA REGNUM, in Russia there is a new type of financial pyramids, said the head of the Department of combating unfair practices of the Central Bank of the Russian Federation Valery Lyakh.
See also: Bank of Russia warned about the emergence of gaming financial pyramids

The search results do not provide a comprehensive list of closed or transitioned MLM companies.

Title:

Content: SUIC, Midas's Partner Suntech Has Successfully Introduced Customized Products and Services To Its VIP Multiple Level Marketing Companies. Suntech Estimates To Quadruple Profits to $8 Million. SUIC Midas Will Partner With 20 Global PSP Partners in 2022 To

Autor: Accesswire
21.09.2021, 12:00  |   |   |

NEW YORK, NY / ACCESSWIRE / September 21, 2021 / Sino United Worldwide Consolidated Ltd. (OTC PINK:SUIC) and Midas Touch's PSP partner in Taiwan, Suntech, has successfully introduced the four products and services to its existing VIP MLM customers. …

NEW YORK, NY / ACCESSWIRE / September 21, 2021 / Sino United Worldwide Consolidated Ltd. (OTC PINK:SUIC) and Midas Touch's PSP partner in Taiwan, Suntech, has successfully introduced the four products and services to its existing VIP MLM customers. Suntech estimates To quadruple profits to $8 Million. SUIC Midas Touch will partner with 20 global PSP partners in 2022 to promote these products and services.

Suntech Taiwan is the largest Taiwan O2O Company, with over 50,000 Merchants and 15 Million users. Suntech Taiwan is going to lead these VIP MLM companies' enterprise-wide business transformation and design exclusive product and service packages. These MLM companies include: PM-International, Taiwan, which is a branch of PM-International AG, Luxembourg. It has more than 30 subsidiaries in more than 40 countries. It provides high-quality nutritious and fitness foods and beauty care products carried through its own brands. PM-International has been recognized as one the Top 100 Direct Sales companies worldwide and is currently ranked 10th in 2021; and the Tsingshan Group of Companies has ten major business groups with a global scope covering more than 30 countries around the world. The holding group has captured the focus of major international media. Among the accolades it has gathered over the decades, its biotechnology company has received high recognition and won, among others, the Taiwan Biotechnology Award, the Taiwan's No. 1 Brand Award, and the Taiwan Golden Quality Award.

"Thanks to the breakthrough innovations and products of SUIC, Midas Touch, Suntech is estimating an increase in net profits to four-fold, expected to reach $8 million on its $1 billion sales turnover. Midas Touch products and services provide instant, emergency funds for our partner merchants and customers. This has been a big success especially during this critical period of pandemic. We are set to increase customer lifetime value with our advanced DeFi business models and strategies," says Joa Chen, Suntech's General Manager.

SUIC Midas is now finalizing and identifying additional 20 PSP partners this year through 2022, with over two million merchants that will bring an aggregate sales turnover of $20 billion, generating $8 million profits for each of the PSP partners as a result. SUIC Midas Touch will fully support these 20 PSP's to earn a total of $160 million in net profits and achieve a total $20 billion in aggregate sales turnover.

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SUIC, Midas's Partner Suntech Has Successfully Introduced Customized Products and Services To Its VIP Multiple Level Marketing Companies. Suntech Estimates To Quadruple Profits to $8 Million. SUIC Midas Will Partner With 20 Global PSP Partners in 2022 To NEW YORK, NY / ACCESSWIRE / September 21, 2021 / Sino United Worldwide Consolidated Ltd. (OTC PINK:SUIC) and Midas Touch's PSP partner in Taiwan, Suntech, has successfully introduced the four products and services to its existing VIP MLM customers. …

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Avon shifted to an MLM-style business in 2000.

Avon's stock value fell from $30 to $3 between 2000 and 2020, indicating a decline in performance.

Tupperware added MLM-type products, but its stock value dropped over 90% in 5 years.

Herbalife, Amway, and Mary Kay Inc remain major direct selling industry players, though their current sales models are unclear.

Title:

Content:
Global Direct Selling Establishments Market On Trajectory Of Substantial Growth, Projected To Reach $1,125.52 Bn By 2027

(MENAFN- EIN Presswire)

Direct Selling Establishments Global Market Report 2023 : Market Size, Trends, And Global Forecast 2023-2032

The Business Research Company's Direct Selling Establishments Global Market Report 2023 – Market Size, Trends, And Global Forecast 2023-2032

The Global Market Report for Direct Selling Establishments by The Business Research Company, detailing market size, trends, and providing a global forecast for the years 2023 to 2032.” - The Business Research Company

LONDON, GREATER LONDON, UK, December 12, 2023 /EINPresswire / -- The global direct selling establishments market is positioned for remarkable expansion, characterized by a segmentation based on type, products, and price range.

Market Size and Growth Projection: The market size for global direct selling establishments is set to burgeon from $688.45 billion in 2022 to $763.85 billion in 2023, exhibiting a robust compound annual growth rate (CAGR) of 11%. Looking ahead, the market is anticipated to soar to $1,125.52 billion in 2027, sustaining a CAGR of 10.2%.

Driving Factors: The escalating demand for additional income avenues, particularly in developing and underdeveloped countries, stands out as a primary driver for the direct selling establishments market. The Associated Chambers of Commerce and Industry of India (Assocham) forecasts the Indian direct selling industry to reach $2,169 million by 2021, underscoring the growing significance of direct selling as a viable part-time income source. Promoting self-employment and financial independence, direct selling addresses the need for supplementary income opportunities, a trend expected to propel market growth.

Explore comprehensive insights into the global direct selling establishments market with a detailed sample report:

Major Players : Key players in the direct selling establishments market include Herbalife, Amway, Mary Kay Inc., Infinitus, Tupperware, Vorwerk, Natura, JoyMain, DXN, and Belcorp. These industry leaders play a pivotal role in shaping market dynamics through innovative approaches and product offerings.

Market Restraints: The surge in demand for online shopping poses a challenge to direct-selling establishments, as e-commerce platforms often entice consumers with discounts. To adapt, some direct selling platforms have shifted their business models to incorporate e-commerce channels, addressing the evolving market landscape. The competition from online portals and changing consumer preferences is influencing strategic shifts within the direct-selling industry.

Emerging Trend : Artificial Intelligence (AI): Artificial Intelligence (AI) is emerging as a transformative trend in the direct selling establishment market. AI applications are revolutionizing customer interactions, enabling personalized marketing strategies, and optimizing inventory management. Technologies like chatbots and AI-powered software, such as Ventaforce, are enhancing operational efficiency and customer service in the direct selling industry.

Regional Insights: In 2022, Asia-Pacific led the direct selling establishments market, with North America securing the second-largest position. The geographical coverage of the direct selling establishments analysis encompasses Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

Access the complete report for an in-depth analysis of the global direct selling establishments market:

Direct Selling Establishments Global Market Report 2023 from TBRC covers the following information:
.Market size date for the forecast period: Historical and Future
.Market analysis by region: Asia-Pacific, China, Western Europe, Eastern Europe, North America, USA, South America, Middle East and Africa.
.Market analysis by countries: Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.

Trends, opportunities, strategies and so much more.
The Direct Selling Establishments Global Market Report 2023 by The Business Research Company is the most comprehensive report that provides insights on direct selling establishments market size, direct selling establishments market drivers and direct selling establishments market trends, direct selling establishments market major players, direct selling establishments market competitors' revenues, market positioning, and market growth across geographies. The direct selling establishments market report helps you gain in-depth insights on opportunities and strategies. Companies can leverage the data in the report and tap into segments with the highest growth potential.

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Amway and Herbalife have terminated Russian operations due to economic circumstances.

Title:

Content: Russian Federation
Moscow
+ 21 °
Society27 July 2022 10: 40
Amway is leaving the Russian market.
Oriflame and Avon next?
The largest players in various fields continue to leave the domestic market.
Direct selling is no exception.
This opens wide horizons for domestic brands
Dmitry VASILIEV
Photo by Shutterstock
SNOW KOM
March 11, among the first who made a statement about the termination of work in Russia, was the American Herbalife.
62 sales centers stopped shipping their products.
Today, such news does not seem out of the ordinary – foreign companies continue to close.
Rumors that Amway (USA) is also about to join the ranks of “sinking ships ” went for four months and, finally, found confirmation.
At the end of June, the global board of directors announced the official decision: “We have reached a point where economic, technological, organizational and operational circumstances have made it impossible for us to continue our work. ”
Meanwhile, Amway is the number one direct selling company in the world and of course many companies follow it.
STORMITH!
It is known that two other foreign brand leaders – Avon (USA) and Oriflame (Sweden) – are also going through hard times today.
According to various sources, employees admit that they do not feel a sense of stability: “The decision to leave Russia is made by top management located abroad.
We are kept to the last in the dark, in limbo, ” admits an Avon employee, who wished to remain incognito in the framework of the publication. – Do my colleagues and I expect that the story of “Amway ” will repeat itself?
Yes, unfortunately, we are preparing for the worst. ”
According to the analysis of the sites, Avon and Oriflame products are in short supply, which may indirectly indicate problems with production.
And although neither Avon nor Oriflame made any official statements, their actions are in many ways reminiscent of Amway.
ALL YOUR OWN, MOTHERLY
As you know, a holy place is never empty.
The released niches are filled by domestic manufacturers: new Russian brands are actively developing, and already well-known market players are increasing their capacities.
The departure of foreign brands will definitely not cause a decline in the direct sales industry.
Moreover, business analysts indicate that Russian direct sales companies demonstrate high crisis resistance.
First of all, they will not be closed for political reasons.
Secondly, in the conditions of limited choice in the labor market, economic recession and rising prices, they offer people the opportunity to earn extra money, as well as the purchase of high-quality goods for personal use with a good discount.
Of course, the most affected are those who built a business in foreign companies and planned to transfer it to children.

The post-pandemic work-from-home trend has supported MLM sales by creating demand for flexible income opportunities.

The gig economy has supported part-time MLM consulting, offering flexible schedules and extra income.

Stringent regulation poses a risk to MLM companies deemed to be operating pyramid schemes.

High consultant turnover can lead to declining sales and revenue in MLM companies.

Inventory is a significant asset for MLM companies and can be challenging to manage.

Oil price increases can impact MLM companies that rely on oil-based products.

Negative press around MLM business models can decrease stock value by eroding investor confidence.

Limited analyst coverage can leave MLM companies under the radar, making it hard for investors to get accurate information.

Micro-cap stocks, often illiquid, can struggle to attract investors.

The pandemic led to 10.5 million new business applications in 2021-2022.

Title:

Content:     The Economic Times daily newspaper is available online now.

    A silver lining from pandemic: Startups are booming in US

    Synopsis

    New research from economists at the University of Maryland and the Federal Reserve presented on Friday at the Brookings Institution, a think tank in Washington, documents a potentially durable surge in Americans starting businesses during and after the pandemic. The new companies range from restaurants and dry cleaners to high-tech startups.

    Washington: The Covid-19 pandemic hurt the US economy in a lot of ways. It choked global supply chains, sent consumer prices soaring and briefly knocked millions of people out of work. But it might have also broken America out of a decades-long entrepreneurial slump.

    New research from economists at the University of Maryland and the Federal Reserve presented on Friday at the Brookings Institution, a think tank in Washington, documents a potentially durable surge in Americans starting businesses during and after the pandemic. The new companies range from restaurants and dry cleaners to high-tech startups.

    That surge appears to be a direct response to how the fallout of the virus quickly but permanently changed how many Americans live and work.

    Those changes opened doors for entrepreneurs, who, economists often contend, are best able to respond to sudden business opportunities. The opportunities came when the federal government was showering Americans with trillions of dollars in pandemic assistance, which may have given many people the capital needed to start a company and hire workers. Federal statistics showed early signs of the business-creation burst. Some economists dismissed it initially as a fluke of the pandemic - one likely to quickly fade.

    That hesitancy was based in part on studies showing that startup activity had been declining for several decades. A paper this month by economists at the University of Chicago and the Fed showed that startup activity and employment, as a share of the economy, had fallen since the 1980s. A handful of large firms increasingly dominate industries.

    But the new paper by John Haltiwanger of the University of Maryland and Ryan Decker of the Fed, two of the nation's leading researchers in the study of economic dynamism, suggests that the pandemic may have broken those trends. "We find early hints of a revival of business dynamism," Decker and Haltiwanger wrote. They cautioned that "in many respects it is too early to ascertain whether a durable reversal of pre-pandemic trends is occurring," in part because the revival is still so young.

    Champions of policies to increase dynamism were less restrained. "This is evidence of a genuine resurgence of economic dynamism led by a spike in startup activity unlike anything we've seen in the post-Great Recession era," said John Lettieri, the president and CEO of the Economic Innovation Group.

    Haltiwanger and Decker drew evidence from a wide variety of publicly available sources on new and existing businesses. They found evidence of a sustained increase in new-business activity - and job creation from those businesses.

    The maps of that entrepreneurship track closely with the new realities of an economy in which more Americans work from home, with fewer startups in downtowns and a large increase of them in suburban areas. Monthly applications for new businesses that are likely to create jobs are 30% higher than they were in 2019, the economists report.

    Those applications spiked shortly after the pandemic hit, when Congress first pumped stimulus into the economy. They fell briefly and then jumped again at the end of 2020, when lawmakers sent more money to people and companies.

    One question the study does not address directly is whether President Joe Biden can rightfully claim any credit for those developments, as he has repeatedly tried to do. "A record 10.5 million new business applications were filed in my first two years, the largest number ever on record in a two-year period," Biden said.

    White House officials said that they were encouraged by the study and continued to believe that the $1.9 trillion American Rescue Plan, which Biden signed into law in early 2021, helped support an entrepreneurial surge.
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      Stories you might be interested in

Federal assistance has driven the increase in new business startups by providing necessary capital.

Suburban areas have seen a surge in startups as people escape the city to start their own businesses.

The herb oil market is expected to rise steadily post-pandemic, driven by demand for natural products and increased health consciousness.

Title:

Content: Herb Oil Market is predicted to rise steadily | Symrise, Givaudan, Biolandes, DoTERRA, Enio Bonchev

Herb Oil Market

Herb Oil Market by Type, Application, and Extraction Method : Global Opportunity Analysis and Industry Forecast, 2021-2030

PORTLAND, OR, UNITED STATES, September 30, 2022 /EINPresswire.com/ -- Herbs can be obtained from the leaves of both herbaceous and non-woody plants. Essential oils, commonly known as herb oils or herbal oils are liquid extracts of hydrophobic plants. These oils are commonly used in complementary and alternative medicine, such as aromatherapy.Other applications for herb oils that contribute to the market's growth include the cosmetic and personal care sectors, where herb oils are used to make perfumes, soaps, and other products, as well as adding flavor to a variety of foods and beverages.These oils have the potential to act as natural insecticides, minimizing the need for synthetic pesticides. There has been an increase in demand for herbal goods and alternative treatments, indicating that these products are becoming more popular. As a result, in the future years, the herb oil market is predicted to rise steadily.

Buy Now: https://www.alliedmarketresearch.com/checkout-final/d772dee8125135b876aa871160dfaa5e

Companies Covered

Young Living Essential Oils, Symrise, Givaudan, International Flavors & Fragrances, Biolandes, DoTERRA, The Lebermuth, China Flavors and Fragrances, Citrus and Allied Essences, and Enio Bonchev

COVID-19 Impact analysis

COVID-19 sickness began to spread over the world in the first half of 2020, infecting millions of people and causing major countries around the world to enforce foot prohibitions and work stoppage orders. With the exception of medical supplies and life support equipment, the majority of industries have been badly impacted. The herb oil sector has also been hit hard.
The pandemic has disrupted the supply chain, with businesses reporting significant delays in obtaining the raw materials they require. Inventory management has become particularly difficult for producers as a result of this.
COVID-19's lockdown restrictions, along with a manpower shortage, resulted in a drop in Herb Oil output and sales.
Top Impacting Factors.

Request The Free Sample PDF Of This Report: https://www.alliedmarketresearch.com/request-toc-and-sample/15545

There are various reasons that contribute to the worldwide herb oil market's expansion. One of these aspects is the growing interest among consumers in organic and natural solutions to everyday problems.
One of the key driving causes behind the popularization of the herb oil market is the millennial generation, which accounts for a substantial portion of the global population.
The primary growth reasons for this industry will be increased health consciousness, the priority put on physical fitness, and expanding public knowledge of alternative health options.
Market Trends

Natural Product Demand is on the Rise

Because of changing consumer lifestyles, a plethora of factors, growing awareness of the benefits of natural products, consumer focus on health and wellbeing, and millennial trends, today's consumers are hyper-aware and conducting detailed comparisons of various product alternatives before making purchasing decisions. Consumers are primarily concerned with the ingredients used in products, the technology employed, and the manufacturing process.

With the increased use of digital media and constant online pop-ups, consumers' lifestyles have changed, and this has had a significant impact on their consumption habits. As a result, leading market players are focusing on providing additive-free and GMO-free products. As a result, businesses are looking for natural ingredients in the making of their products, such as herb oils. In the food industry, customer preference for natural products may help increase demand for herb oils.The global essential oil market is expected to increase steadily in the next years, boosting demand for herb oil.

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Increased Application in Aromatherapy and Pharmaceuticals

The herb oil and aromatherapy market is expected to grow at a faster rate globally due to widespread awareness of the medicinal qualities of herb oils and other essential oils used in aromatherapy. Herb oil and aromatherapy are becoming more widely used in the medical field, resulting in increased demand all around the world. Consumer experimenting for unusual health issues is on the rise. The market for herb oil and aromatherapy is growing thanks to helping therapies. In aromatherapy, herb oil is the most powerful antibacterial. It has the highest amount of phenol, the antibacterial component.

In response to a perceived consumer "green consciousness" movement in the 1990s, major "personal care" product companies interested in using natural bio-active oils in shampoos and other similar items sparked demand for medicinal grade oils.Herb oil, as a natural anti-allergic and anti-inflammatory agent, has a wide range of uses in the treatment of respiratory problems, infection prevention, digestion disorders, and so on. As a result, these traits may contribute to the pharmaceutical industry's need for herb oil.

Key Benefits of the Report

This study presents the analytical depiction of the Herb Oil industry along with the current trends and future estimations to determine the imminent investment pockets.
The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the Herb Oil Market share.
The current market is quantitatively analyzed from 2020 to 2028 to highlight the Herb Oil Market growth scenario.
Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
The report provides a detailed Herb Oil Market analysis based on competitive intensity and how the competition will take shape in coming years.

Connect to Analyst: https://www.alliedmarketresearch.com/connect-to-analyst/15545

Reasons to Buy This Herb Oil Market Report:

○ Mergers and acquisitions should be well-planned by identifying the best manufacturer.
○ Sort new clients or possible partners into the demographic you’re looking for.
○ Suitable for providing dependable and high-quality data and analysis to assist your internal and external presentations.
○ Develop tactical initiatives by gaining a better grasp of the areas in which huge corporations can intervene.
○ To increase and grow business potential and reach, develop and plan licencing and licencing strategies by finding possible partners with the most appealing projects.
○ Recognize newcomers with potentially strong product portfolios and devise effective counter-strategies to acquire a competitive edge.
○ To develop effective R&D strategies, gather information, analysis, and strategic insight from competitors.

Other Trending Reports:
Essential Oils Market
Tea Tree Oil Market

Source: https://www.dailyreportsworld.com

David Correa
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The global essential oil market growth is expected to boost demand for herb oil as a natural health product.

Women and low-income individuals are often targeted by MLMs with false promises.

Trades of Hope, an MLM, pays artisans 100% of their asking price, but requires a $150 initial buy-in and $12-13 monthly website fee.

Young women are a target demographic for MLMs like LuLaRoe, which recruit them as distributors and exert financial control.

About 90-99% of MLM participants lose money, with the top 1% earning most of the commissions.

MLMs often use guilt and emotional manipulation to recruit and pressure participants, creating a toxic environment.

Avon and Tupperware, once successful direct sellers, have declined and left the Direct Selling Association over ethics concerns.

Some MLMs have been accused of being pyramid schemes and have been shut down.

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Content: Lobbying for sale of essential oil milk powder and red wine
The Democratic Party has received help from nearly 30 members of the public, who have reported to the Police that a distribution company and distributor were suspected of selling products through unscrupulous marketing methods and that the victims had lost about $6.6 million.
Yuan Haiwen, deputy spokesman for financial policy of the Democratic Party, said that about 30 members of the public sought help, alleging that they had been lobbied by a company to participate in the marketing of essential oils, milk powder and red wine, etc., and that the company had asked the victims to pay a franchise fee of $5,210, and lobbied them to become leaders who needed to bear high sales and buy at least nearly $400,000 of goods. The situation, and then encourage people who do not have enough savings to borrow from financial companies.
During the incident, the victims lost about $6.6 million and some of them have already reported to the Police.
Some complainants said that in the dating program to know the dealer, after the payment to join, was constantly extorted by the other party, encouraged to borrow money from the financial company to buy goods, and the company provided sales training, mainly taught how to use human weakness marketing.

Some MLMs use human weakness marketing tactics, like targeting individuals through dating programs.

Title:

Content: Lobbying for sale of essential oil milk powder and red wine
The Democratic Party has received help from nearly 30 members of the public, who have reported to the Police that a distribution company and distributor were suspected of selling products through unscrupulous marketing methods and that the victims had lost about $6.6 million.
Yuan Haiwen, deputy spokesman for financial policy of the Democratic Party, said that about 30 members of the public sought help, alleging that they had been lobbied by a company to participate in the marketing of essential oils, milk powder and red wine, etc., and that the company had asked the victims to pay a franchise fee of $5,210, and lobbied them to become leaders who needed to bear high sales and buy at least nearly $400,000 of goods. The situation, and then encourage people who do not have enough savings to borrow from financial companies.
During the incident, the victims lost about $6.6 million and some of them have already reported to the Police.
Some complainants said that in the dating program to know the dealer, after the payment to join, was constantly extorted by the other party, encouraged to borrow money from the financial company to buy goods, and the company provided sales training, mainly taught how to use human weakness marketing.

Individuals with dark personality traits, like narcissism and psychopathy, can thrive in MLMs but create a toxic environment.

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Content: advertisement
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The dark traits of leadership—and how to avoid them

Many top political and business leaders exhibit narcissism, psychopathy, and Machiavellianism—the so-called Dark Triad of personality. Here’s why that’s damaging to organizations.

[Photo: CSA Images/Getty]

The psychological theory of personality known as the Dark Triad—narcissism, psychopathy, and Machiavellianism—often carries a sinister undertone. When it comes to leaders, research has shown that these traits demonstrate a complex relationship with leadership and leader effectiveness.

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Despite being negatively related to responsibility, job performance, and overall accomplishments, the Dark Triad has been positively correlated with charisma, creativity, strategic thinking, and communication skills. Individuals high in dark traits may appear successful in certain situational contexts, particularly if their work requires a rational and emotionless behavioral style, willingness to take risks, and a focus on achievement, even if that means harming others. This suggests that these individuals may be able work effectively at an individual level while simultaneously damaging the organization.

Dark Triad leaders can create a toxic environment that can be detrimental to employees, coworkers, and an organization as a whole.

So, what are these dark traits, and how can we distinguish them?

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  • Psychopathy—guiltlessness, low levels of empathy and responsibility, and high levels of egocentricity and impulsivity
  • Machiavellianism—ruthlessness, selfishness, and having a manipulative personality
  • Narcissism—feelings of personal entitlement and superiority, envy of success, and exploitative behaviour

While each of these three traits have elements that distinguish them from their Dark Triad counterparts, there is a substantial degree of overlap among them. The common behavioral subcomponents that are found, at least to some degree, in each of the Dark Triad characteristics include excessive self-interest, ruthless disregard for others, manipulative behavior, and emotional insouciance.

It is not always easy at the recruitment stage to ascertain who will display these characteristics. In general, individuals tend to de-emphasize their negative traits. Individuals high in dark traits are more likely to underplay their dark traits because they have a natural propensity to self-enhance. The recruitment context presents a clear external reward (receiving a job offer) and individuals high in dark traits are prone to manipulation and presentation management to receive a desired outcome.

The challenge is how to identify them before irreparable damage is done. It starts at the recruitment stage, making sure the right candidate is selected and vetted appropriately.

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Identifying Dark Triad in a recruit

Most assessments are looking for well-rounded individuals who score highly in attributes that are valuable to an organization and the role they are seeking to fill. Many of these assessment measures are traditional self-reporting personality instruments where individuals respond to a series of statements related to their attitudes and beliefs.

But there are some concerns that this type of measure can be subject to response distortion by the respondent.

Given the manipulative nature of some dark trait individuals, an off-the-shelf approach to assessment is less likely to reveal inconsistencies if the candidate understands how they are being assessed. This then begs the question—would a less transparent approach be more effective?

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An alternative is to use conditional reasoning, where responses are not linear and involve measuring a range of implicit emotions, beliefs, attitudes, or motives. It is an approach that is better able to mask an assessment’s explicit purpose and has successfully been used to identify undesirable traits such as aggression or lack of integrity.

A hybrid approach to assessment, using both psychological theory and data-driven methodologies, helps to detect and measure undesirable attitudinal traits and behaviors via algorithmic response patterns on self-report assessments. This allows recruiters and hiring managers to evaluate the probability of a candidate’s risk on specific toxic personality traits, which can be further scrutinized during interviews or references.

It should be emphasized that these subclinical measurement approaches cannot replace proper professional clinical diagnoses of personality disorders. An individual may indeed score highly on one or more of these scales and still not meet the clinical criteria for personality disorder. However, it is encouraging to see that leveraging data science can help us measure traits that have been traditionally more difficult to capture, and which may have a significant impact on work behavior.

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How dark traits negatively impact organizations

In an environment where recruitment and retention of talent is a challenge, it’s tempting to skip or take a lighter approach to recruitment—sacrificing quality for speed. However, time spent getting assessment right pays dividends.

The consequences of a bad hire have long been recognized. According to the Society of Human Resource Management, the average cost to hire an employee is $4,700 with that cost tripling for executive and leadership roles.

The cost of hiring someone with dark traits can be even more, with fallout from subordinates, clients, finances, and reputation. At high levels of DT traits, you run the risk of these individuals cultivating a negative organizational climate. These personalities can be more likely to engage in immoral and unethical behaviors to achieve their goals, including bully tactics, deceit, concealment, and general opposition to rules or norms accepted by society.

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Research has shown that, in general, dark trait individuals have been linked to several negative and potential costly outcomes in the workplace including:

  • Poorer job performance from themselves and their subordinates.
  • Increased counterproductive work behaviors.
  • Fewer organizational citizenship behaviors.
  • Lower levels of ethical decision making.
  • Negative perceptions from others
  • Low team morale.
  • Greater likelihood to engage in criminal/illegal behaviors.

Unfortunately, those in a more senior role have the greatest potential to wreak havoc. They are in a position of influence, party to confidential information and finance, and are responsible for making decisions, good or bad.

The impact on an organization can be significant, not only financially but reputationally as well.

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It really is a question of the potential risk to the company for making a bad hire, which can be context dependent. The traits that contribute to effective leadership are a function of the context in which the leader operates. For those with responsibility for vulnerable people, in finance, governing a nation, or where health and safety are essential, the consequences of a bad hire and associated fallout could be far-reaching. The first step is for the recruitment process to be rigorous to facilitate early detection of toxic leaders in order to restrict the potential for their destructive forces in organizational contexts.

Kristin Delgado is research and development manager at talent recruitment agency Talogy.

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MLM recruitment processes can be manipulated by individuals with dark traits who use charisma and strategic thinking.

To retain workers, MLM companies assess their reputation, offer competitive wages and benefits, and streamline hiring.

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Content: Dig deep to find employees during Great Resignation

Employers need to adopt a number of tactics

I’m getting a great deal of questions regarding workforce shortages. The causes are multi-layered- from the Great Resignation to the child care crisis to the Silver Tsunami. HR professionals have been warning about impending shortages for years. What can be done to better attract, recruit and retain talent in a tight labor market?

Humans have an amazing ability to turn adversity into creativity. There are many strategies to improve the chances to attract good workers, who have multiple offers coming in. Companies should see workforce shortages as an opportunity to reinvent their hiring practices. There is visible proof that only the best companies are winning over talent.

First, employers need to stop and ask, “Would I work here?” What is the workforce saying about my company? What is my company’s reputation from employees’ perspective?

Realize that job seekers talk. A recent applicant refused a company’s offer after learning the best friend’s dad worked there and was being treated poorly. I remember a law firm that had a tough time adding attorneys because of the managing partner’s terrible reputation and unusually high turnover.

Yet some companies report getting lots of resumes. How? Word on the street is they are a great company to work for. One that comes to mind is a food service and retail operation- the same industry having some of the highest job vacancy rates. Applicants tell us, “I’ve been waiting for an opening there.”  Word is they treat people fairly and pay well. Employers can use the presentation they provided to banks and turn that same “sell” towards recruiting. In the same way a banker is convinced to invest in their company, the message can be used to convince applicants to invest in them too.

Happy employees are a business’ greatest marketing device. Plus, good companies make sure they pay competitive wages and benefits, sometimes above market. They also make sure their website looks and feels like life at work. If your company is promoting diversity, make sure the website reflects it. The job posts need to be intriguing and inviting. Use social and other forms of media ads.

In today’s world, be sure to add “remote,” “hybrid” or “onsite’ next to the job post title. Job seekers are looking for this! If your company’s employees work remotely, the good news is geography doesn’t matter.  Widen your net by placing postings in nationwide sites.

The hiring process needs to be examined to streamline, improve, and shorten it. Use of Applicant Track Software (ATS) can help greatly. The system helps filter candidates, takes notes, can grade the applicants, and maps out the next steps. If the process is too lengthy, there is a pretty good chance the candidate will be gone before your organization gets around to deciding.  And don’t ghost candidates.  That’s another reputation a business can mitigate.  Make sure there is a resume receipt letter and be sure to tell each candidate when a decision has been made.

Rotate and post jobs continually. Save all the runners-up and resumes in the ATS for future consideration in your company. Build your own applicant database.

To prevent candidates ghosting you, you’ll need to take nothing for granted.  Ask them if they are expecting any other offers. Tell them why they should stick to their decision. Stay in constant communication with the new hire while on their notice period. Ask them to contact you if anything changes. Remind them on Friday the start date is this Monday at 8 a.m.

This is the start of the hiring process, not the end. Every company needs to have a fabulous orientation program. Make the new hire feel welcomed. Take all measures to acclimate them into the company. HR people call this a “bonding moment” aiding retention. The new hire is evaluating you just as frequently as you are evaluating them.

Train your managers! I’ve seen the hiring or front-line manager totally blow up all the good work done to securing a new hire.  Then live up to your reputation. Job seekers tell me they stay because the job met expectations. The job was actually better than the job description.  Everyone is treated fairly and measured consistently. They have a chance to be heard and see how they fit in.

In a tight job market, employees have lots of choices. It’s always the talent that leaves, not the under performers.  Those people will stick with you until you do something about them. Implementing these tips will better your chances to secure workers that others are going after. Spell out why they should choose you. Be the Employer of Choice!

Rose Miller, local HR Thought Leader and Speaker can be reached at roseumbromiller@gmail.com

Happy employees are a business' greatest marketing device, achieved through a strong orientation, open communication, and fair treatment.

Companies use Applicant Track Software or train managers to secure new hires and prevent ghosting.

Implementing these strategies can make a company the Employer of Choice, crucial in today's competitive job market where 50.5 million people quit in 2022.

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Three Ways To Secure And Retain Top Talent In Today’s Business Environment

Founder and CEO of Rentec Direct, property management software for real estate professionals.

Experts are predicting that securing talent and keeping employees satisfied and engaged will be some of the top challenges for business owners over the next year.

Did you know that around 50.5 million people quit their jobs in 2022? I believe this trend could remain (or even grow) into 2023 if businesses don’t implement effective techniques to secure and retain their employees.

Many of those people are quitting their jobs to take on new opportunities, a movement that many call the “great resignation.” These new opportunities often had more perks like greater flexibility, higher salary and professional development opportunities.

The pandemic made some employees reevaluate their work-life balance, leading them to prioritize their health, happiness and personal fulfillment. Employees now expect their employers to offer a competitive salary, flexibility, a positive work culture and a sense of purpose and community. If you’re not able to offer those essentials, employees will simply look elsewhere. Therefore, I see businesses that invest in those programs as more likely to reap the benefits of a loyal and productive workforce.

Holding onto great workers doesn’t happen by accident. As the leader of a business that has managed to maintain a high employee retention rate, I believe I have some insight into how you can secure and retain top talent. Part of this was accomplished by maintaining a purposefully smaller team size, which results in each member’s involvement being higher partially by default.

A smaller team also helps me make sure that our employees know our business and clients inside and out, and in return we can better invest in their well-being, including offering ongoing education opportunities, company social outings, community charity projects and a flexible work model.

While it can take time to create and execute employee engagement programs, the ROI can be huge. Here are three ways to provide a workplace that aligns with your employees’ values and goals.

Find ways to build community.

Creating a positive work environment is crucial for retaining top talent. Employees want to feel valued, respected and appreciated. Collaboration, transparency, teamwork and programs, like company social outings and volunteer programs in the community, can build camaraderie and increase job satisfaction.

I also recommend making the time to celebrate employee milestones and birthdays, and as a part of this, regularly host team lunches or activities. In addition, make sure to offer a competitive compensation package to improve employee performance. This can include matching 401(k) programs, quarterly bonuses and lenient vacation time.

In addition, seek employee feedback on a regular basis, through surveys or forums, to see where you can improve to increase job satisfaction and keep retention rates high. Employees’ job enjoyment should be as much of a priority as client satisfaction.

Offer professional development opportunities.

Offer opportunities for professional development and growth such as training, workshops and mentorship programs. It is important to provide employees with the tools and resources they need to do their jobs efficiently and help them stay up to speed with new techniques and technologies in the industry.

Right now, for example, a large number of my employees are participating in the Oregon Real Estate Agency’s Oregon Property Management Licensing course. This is a 60-hour course that is required for all Oregon property managers, and with this knowledge, our participating staff members will be equipped with even more industry knowledge. These trainings can be a win for both you and your employees.

When deciding on enrichment and professionalization opportunities, I often think about what will help my employees understand our clients’ needs in an increasingly complex space. Offering continuing education programs can give your employees a competitive edge in the industry, a solid understanding of what it takes to serve the customer and also help identify and prepare employees for future leadership positions within your organization.

Create a flexible work model that focuses on employees’ well-being.

As much as we’d all like to move on, some employees are still recovering and dealing with the stress and conflict that stemmed from Covid-19. In fact, according to Gallop’s State of the Global Workplace: 2022 Report, employee stress is at a new all-time high.

To help offset some of the daily pressures, you may want to offer additional mental health benefits, more PTO and allotted wellness time. One area that I have found really helps is to provide more flexibility in the workplace. For example, some of my employees work remotely when needed so they can avoid the commute and better balance their work and personal responsibilities.

The pandemic pushed many companies to offer more flexibility in response to the changing needs and preferences of their workers. This was particularly important for working parents and caregivers who faced school closures and more responsibilities.

Employees expect their employers to invest in their well-being, both inside and outside of the workplace. Offering flexible schedules and health benefits that not only work for your employees, but also their families, is a step in the right direction. When employees feel invested in, they will tend to be more engaged in their work. In the end, happier workers lead to better business outcomes.

While competing for talent can be a difficult process, there are ways to stand out and persevere. Above are just a few techniques that have worked for my business that I hope will prove fruitful for you too. All in all, simply thanking and recognizing your employees for all that they do is a solid first step.

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Companies offering education, charity projects, and regular feedback tend to have higher job satisfaction rates.

Smaller teams and flexible work models with development opportunities can increase employee involvement and lower turnover rates.

Some companies use video testimonials, simplified job descriptions, and Natural Career Progression programs to recruit and retain workers.

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Content: Mike Postma: What Best Place to Work program can teach us

Published 7:01 pm Friday, May 12, 2023

Workforce Development, Inc., recently completed our Best Places to Work in 2023 program and dozens of businesses applied.

I gleaned many best practices from the applicants and I thought this column would be a perfect place to share just a few of the pearls of wisdom they gave us.

What are some of your most innovative recruitment strategies? One organization noted that they created short video testimonials of current employees about why they love working there. They posted them on their social media channels but then took it a step further by running these videos as short ads on streaming TV and radio.

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Another organization shared about how they looked inward to remove as many barriers to applicants as possible. Some of these changes included “simplifying and adding more inclusive language to their job descriptions, shortening and digitizing the application process, shortening the interview process, reducing our education requirements, and eliminating required drug testing.” This self reflection on what might be holding job seekers back from applying is a remarkable strategy.

What are some strategies you have implemented for increasing retention, diversity and quality of life in your organization? An application shared that they focused on providing employees with an upward career path through their Natural Career Progression program which moves members incrementally upward both in skill level, as well as compensation, in their current position.

Giving current employees the ability to expand their skill sets and receive compensation for it is a win for both the employee and the organization.

Another organization noted that they are focusing heavily on mental health: “The rate of suicide in our industry is four times higher than the general population and has the highest rate of suicide compared to any other occupational group, even higher than first responders and veterans. We helped facilitate mental health awareness training for our team members.”

A lot of business talk about the need to focus on employee wellbeing, this team is actively doing the work.

What programs are you especially proud of offering? I love the creativity in these responses, there are so many unique ways to engage employees! A few that stood out: “Our Leave of Absence policy allows staff to return to their homeland for a few months to participate in festivals and visit with family/friends. This also allows employees to say ‘yes’ to once in a lifetime opportunity which would take them away from work for an extended period.” Another fun idea: “This year we started an employee-taken photo gallery. The photos are printed onto a canvas and displayed in the office. After a period of time (roughly six months), the photos are given to the team member who took the photo as a memento, and the cycle repeats.” This one blew me away: “Launched a new award for the people who best live the core value of stewardship. The top winner won $25,000 for the non-profit organization of their choice.”

These are just a few of the creative and impactful ideas that local businesses are implementing to fully engage their workforce, both present day and future. What great idea will your company create and implement to grow your workforce in 2023?

— Mike Postma is a Workforce Development Area Manager

Mental health training, flexible leave, and recognition awards can motivate workers and improve wellbeing.

Title:

Content: Mike Postma: What Best Place to Work program can teach us

Published 7:01 pm Friday, May 12, 2023

Workforce Development, Inc., recently completed our Best Places to Work in 2023 program and dozens of businesses applied.

I gleaned many best practices from the applicants and I thought this column would be a perfect place to share just a few of the pearls of wisdom they gave us.

What are some of your most innovative recruitment strategies? One organization noted that they created short video testimonials of current employees about why they love working there. They posted them on their social media channels but then took it a step further by running these videos as short ads on streaming TV and radio.

Email newsletter signup

Another organization shared about how they looked inward to remove as many barriers to applicants as possible. Some of these changes included “simplifying and adding more inclusive language to their job descriptions, shortening and digitizing the application process, shortening the interview process, reducing our education requirements, and eliminating required drug testing.” This self reflection on what might be holding job seekers back from applying is a remarkable strategy.

What are some strategies you have implemented for increasing retention, diversity and quality of life in your organization? An application shared that they focused on providing employees with an upward career path through their Natural Career Progression program which moves members incrementally upward both in skill level, as well as compensation, in their current position.

Giving current employees the ability to expand their skill sets and receive compensation for it is a win for both the employee and the organization.

Another organization noted that they are focusing heavily on mental health: “The rate of suicide in our industry is four times higher than the general population and has the highest rate of suicide compared to any other occupational group, even higher than first responders and veterans. We helped facilitate mental health awareness training for our team members.”

A lot of business talk about the need to focus on employee wellbeing, this team is actively doing the work.

What programs are you especially proud of offering? I love the creativity in these responses, there are so many unique ways to engage employees! A few that stood out: “Our Leave of Absence policy allows staff to return to their homeland for a few months to participate in festivals and visit with family/friends. This also allows employees to say ‘yes’ to once in a lifetime opportunity which would take them away from work for an extended period.” Another fun idea: “This year we started an employee-taken photo gallery. The photos are printed onto a canvas and displayed in the office. After a period of time (roughly six months), the photos are given to the team member who took the photo as a memento, and the cycle repeats.” This one blew me away: “Launched a new award for the people who best live the core value of stewardship. The top winner won $25,000 for the non-profit organization of their choice.”

These are just a few of the creative and impactful ideas that local businesses are implementing to fully engage their workforce, both present day and future. What great idea will your company create and implement to grow your workforce in 2023?

— Mike Postma is a Workforce Development Area Manager

Junior's bakery offers extensive training, competitive wages, and perks, helping them hire nearly 90 new full-time employees in the last year.

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Content: Junior’s bakery takes pride in how it treats its workers by extensive training, competitive wages and extras.

When asked about his concerns on the job, Jason Schwartz, company president, said it was keeping customers satisfied and making sure staff is happy and keeps coming back. The staff is part of his job satisfaction.

“I like the people I work with. I think that’s a big part of it,” he said.

While many bakeries have struggled to find and keep workers, Junior’s has been able to hire nearly 90 new full-time employees in the last year.

“We do very well by our employees,” he said.

The company provides once-a-month lunches to employees and other perks like paying them to take off a Friday afternoon in the summer and hosting a carnival and barbecue. They offer other benefits as well.

“If you have a child and work for us, we will send you a crib,” Mr. Rosen said.

The company began giving out spot awards last year, which are presented to employees who have gone above and beyond to serve the company and its customers. Photos of winners are posted in the plant, and they get a small cash prize.

“It’s good motivation,” said Jeremy Carlin, director of operations. “We present it in a special gathering in front of all the employees.”

Promoting workers and training is also part of the plan at Junior’s. Mr. Schwartz was 21 when he started with Junior’s, and his journey from running a retail store to president has provided him with an education.

“He’s taught me everything I know,” Mr. Schwartz said of owner Alan Rosen, “from the restaurant business to this.”

This article is an excerpt from the June 2022 issue of Baking & Snack. To read the entire feature on Junior's Cheesecakes & Desserts, click here.

Sri Mookambika Infosolutions offers perks like free matchmaking, bi-annual salary hikes, and recognition of achievements, achieving an attrition rate below 10%.

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Content: This IT firm is offering free matchmaking services to employees and hikes when they get married to retain them

A Madurai-based IT firm offers free matchmaking services to its employees and salary hikes when they get married to retain them.

KEY HIGHLIGHTS

  • Sri Mookambika Infosolutions (SMI) offers free matchmaking services to its employees and increments for all every six months
  • The company provided salary hikes on getting married from Day One
  • 40 per cent of the employees have worked there for over five years
Madurai: An IT firm in Tamil Nadu has come up with a unique solution to retain its employees.
Sri Mookambika Infosolutions (SMI), a privately held global technology solutions provider based in Madurai, offers free matchmaking services to its employees and increments for all every six months.
The company's attrition has remained below 10 per cent for seevral years now.
SMI and its associate companies together employ 750 people, of which 40 per cent have worked there for more than five years.
The company was started in Sivakasi in 2006 and shifted its base to Madurai in 2010. The company is clocking annual revenues close to Rs 100 crore.
"Our strength was in our giving back and belief in hard work. We knew one cannot build such a community in a Tier-1 city, where everything is commercially oriented. We chose Madurai since it matched our DNA," MP Selvaganesh, founder and CEO of SMI, told TOI.
SMI had a hard time hiring people initially as it was labelled as a Madurai-based startup. "Till our headcount reached 200, we had a tough time. Even average performers at work were given the benefit of doubt and that made them perform better later. Slowly as the team settled, we started demanding professional excellence. The results were amazing," Selvaganesh said.
The company provided salary hikes on getting married from Day One. However, matchmaking services came in later.
"They treat me like a brother and several of them are from villages, with either aged parents or lacking a proper outlook of the world and unable to fight the right match. We help such employees through a network of 'alliance makers'. Weddings are the best get-togethers, the entire team hires vans and attends," he said.
The company offers 6-8 per cent increments every six months to all employees. It even offered an increment every quarter in 2021 when the attrition rate was scaling new highs, with special coverage for Top 40 or Top 80 employees.
"There are several long-term employees. We cannot take them for granted thinking they will not go anywhere. We give them their due even before any such thought comes to them. Employees reach out to me directly when they face any challenges. We need to invest time and money to create such bonds and be honest in our approach. Not see everything from the business perspective alone," Selvaganesh added.
At the same time, accountability also matters. "We show the door to the bottom 4-5 per cent performers every year. The majority of voluntary attrition are women who quit after marriage. Even if one includes all that, our attrition level will still be less than 13 per cent, a number that IT companies in Tier 1 cities can only aspire for," the CEO said.
End of Article

Business leaders consider hiring and retaining talent a top priority, with 95% using increased compensation as a retention strategy.

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Content: Despite challenging economic conditions, companies are still finding it difficult to attract and retain the right talent. That’s one of the takeaways from the most recent U.S. Bureau of Labor Statistics report, which showed that job vacancies still remain above 10 million as of November 2022. We’ve confirmed that trend in our own work: Last August, when we surveyed 800 senior business leaders, more than 95% of them told us that hiring and retaining talent was one of their top three priorities as they strive to deliver on their strategies. However, those needs are not constrained to the short-term: More than two-thirds of the leaders we surveyed reported that filling positions for lower and higher wage workers is critical for their organization’s ability to compete, both in the next 12 to 18 months and in the next three to five years.

But business leaders are doing very little that’s innovative to tackle the talent challenge. When it comes to higher-wage workers, they’re relying primarily on two basic strategies: increasing compensation (a fairly obvious approach) and implementing remote/hybrid work models (an unsurprising approach, given the effects of Covid-19). They’re doing even less for lower-wage workers: In our survey, fewer than half of respondents reported using even basic levers, such as health care benefits and compensation increases, to attract and retain lower-wage workers.

Much of this is due to a lack of awareness of innovative talent practices. Many of the leaders we surveyed simply did not know what other options were available to them. This, they recognized, was a problem: Less than 20% of them reported their organizations had very mature talent strategies.

So how can you enable more talent innovation and measure its impact?  Based on our survey findings, organizations need to use a more expansive portfolio of practices to strengthen their ability to recruit and retain talent. To help, we’ve identified nearly 40 strategies, which we’ve organized into seven categories that either strengthen the hiring process or help enhance a company’s offer. Some of these practices are familiar but underutilized, and others are newer and more innovative.

Strengthening the Hiring Process

Hiring campaign and selection

Many companies rely on traditional recruiting strategies to identify candidates who fulfill a long list of requirements. Finding candidates who tick off every box on the list is not easy — and those few who do are often actually not the right people for the job. By embracing more expansive hiring and selection processes, companies can do a better job of finding the talent that’s right for them. Here are some innovative practices to consider:

  • Figure out what work really needs to get done, and rewrite job descriptions to focus on the skills and specs that matter the most for that work, instead of relying on generic education or experience requirements.
  • Seek candidates who match 70% to 80% of the most critical skills for the role — and develop learning curricula to equip them with the remainder.
  • Offer “micro-internships” (short-term paid projects) or apprenticeships that reach new candidate pools and allow employers and candidates to assess fit before committing to a full-time hire.
  • Host open hackathons to assess talent and facilitate the hiring of candidates in batches.
  • Consider candidates simultaneously for multiple open roles if they have a high degree of overlapping skills.
  • Leverage tech-based and AI-based talent assessments to screen for technical or interpersonal skills.
  • Employ inclusive, gender-neutral language in job descriptions to attract more diverse candidates.

Talent sourcing

When competition for top talent is fierce, as it is today, you need to broaden your methods of sourcing candidates. Here are some practices to consider:

  • Expand internal talent mobility (e.g., lateral job transfers, internal gig work) by drawing on a foundation of skills and aspirations as a basis for mobility and supporting retention.
  • Embrace on-demand and gig platforms to increase labor-force flexibility (even for higher-wage workers), accelerate time-to-market, and enable innovation.
  • Work to attract alumni with valuable institutional knowledge back to your organization.
  • Build an internal list of previously high-performing employees who might be candidates to re-engage for future roles.
  • Tap into “hidden” populations, including retired, neurodiverse, and previously incarcerated workers.
  • Acquire companies with top talent — or enter into agreements to borrow and share talent with other companies.

Channel strategy

Companies that integrate new and innovative channels into their talent strategy can better recruit critical, in-demand talent for years to come. Consider expanding your repertoire to include the following techniques:

  • Deploy talent from Hire-Train-Deploy (HTD) partners who source high-potential candidates and equip them with the relevant skills for your needs.
  • Use digital platforms to do more programmatic and personalized recruiting (including leveraging QR codes, text messaging).
  • Partner with educational and community institutions, including job centers and community colleges, to offer tailored curriculum and term-time work experiences to build a talent pipeline with relevant skills.
  • Embrace new ways of identifying talent on social-media platforms (such as layoff lists and LinkedIn posts).
  • Develop and market a more effective referral program, particularly for in-demand roles.

Enhancing the Offer

Compensation and Benefits

Are you one of the many employers raising salaries to compete for talent? Half of the 800+ respondents in our survey reported increasing compensation for their employees, and nearly 75% of employers cite the talent shortage as the main driver for salary budget increases. But there are other ways to strengthen your compensation and benefits package beyond increasing compensation. Try some of these practices to get started:

  • Provide creative benefits, such as caregiver support programs, childcare services, and wellness perks.
  • Segment and develop tailored benefits for hard-to-fill talent populations.
  • Provide incentives, such as higher bonuses during peak hours and step-ups on promotion, especially for lower-wage workers.
  • Guarantee health care benefits and appropriate sick time for your full workforce.
  • Reduce volatility by ensuring stable and predictable pay, particularly for lower-wage workers.

Work Design

The Covid-19 pandemic has fundamentally changed how we think about work. Job flexibility has skyrocketed in importance since the pandemic, with some employees valuing flexibility even more than a 10% pay raise. Rethinking work design can not only better attract and retain workers but also can increase productivity and focus worker capacity on the highest-value tasks. Get started redesigning work with the following strategies:

  • Break work into its components to assign responsibilities more clearly across a team or to freelance workers, and improve your approach to sourcing.
  • Deploy talent more dynamically, by creating skills-based pools of talent that can be assigned to the most critical priorities on-demand.
  • Use creative scheduling and shift redesign to allow lower-wage workers to move or switch shifts more flexibly while still providing adequate coverage.
  • Experiment with different flex models, including compressed work weeks, sharing jobs among multiple part-time employees, and/or scheduling split shifts to cover “rush hours.”
  • Redesign work by eliminating, re-assigning, or automating less-critical responsibilities.
  • Embed technology that improves ease of work, including language assistance and tools to accommodate older workers.

Career development

Providing opportunities for your employees to take on stretch assignments can help you not only develop but also retain your employees. According to the Pew Research Center, more than 60% of US employees cited a lack of career-advancement opportunities as a leading reason for leaving their jobs. To expand your organization’s portfolio of career-advancement opportunities, consider adding some of these innovative practices:

  • Provide education benefits linked to individualized skill-development plans (for example, tuition reimbursement).
  • Build targeted learning and development programs to support onboarding, upskilling, and reskilling across both hard and soft skills.
  • Design mentorship and sponsorship programs, and peer-to-peer coaching systems.
  • Upskill managers to be better people leaders and increase manager accountability for team development.

Culture

Companies need a compelling culture to maximize the engagement, productivity, and retention of their existing workforces. In recent years, company culture has become the most important driver of job satisfaction, with culture being 10x more predictive of employee retention than compensation. Here are some innovative practices to help build a meaningful culture:

  • Embed company purpose, strategy, and values in your operating and performance practices and feedback process, and train your leaders to become culture champions.
  • Set up robust onboarding programs that build affiliation and mentorship into the process.
  • Create opportunities and free up as much as 10% to 20% of capacity for passion projects.
  • Boost affiliation by developing interest groups and communities of practice.
  • Take pulse checks on employee sentiment to highlight opportunities for improvement in near real-time.
  • Develop clear two-way communication channels for employee input and engagement.

. . .

The best talent strategy for your organization involves finding the right portfolio of practices that meet your needs and investing appropriately in their implementation, even during uncertain economic conditions. Many companies across industries have recognized how critical talent is to business success and have kickstarted their innovation journeys based on their target employee needs. For example, IBM removed degree requirements from 50% of their U.S. job postings to widen their talent pools, Walmart provides frontline associates with fully funded college tuition and accelerated career paths after graduation, and some law firms have introduced concierge services to support aging family members.

While you don’t have to do everything on our list to have a successful talent strategy, you should identify where you can do more off to better compete for talent. Take stock of what your organization is already doing, then thoughtfully assess where there are gaps in your talent strategy and how our suggestions can be helpful. Keep in mind that you may need to tailor your talent strategies to different employee segments within your company. By experimenting with new innovations and putting the right feedback systems in place, you can develop a sustainable strategy that can help you create lasting talent advantage.

Acknowledgements: We would like to thank Colleen McDonald, Partner, and Christina Li, Consultant, both with Boston Consulting Group, for their contributions to this piece.

The effectiveness of these strategies can vary, and companies may need to adapt to changing labor trends, such as prioritizing job flexibility over pay.

MLM companies that offer competitive compensation, benefits, and growth opportunities tend to have a more stable workforce.

India's direct selling industry grew 12% in 2022-23, reaching Rs 21,282 crore, with wellness products accounting for 73.5% of the turnover.

Title:

Content:     The Economic Times daily newspaper is available online now.

    Direct selling industry grew 12% in 2022-23, crosses Rs 21,000 crore in turnover: IDSA

    Synopsis

    Indian Direct Selling Association and Kantar's report revealed a 12% industry growth to Rs 21,282 crore turnover. The sector aims to strengthen with government support, distinguishing from fraudulent schemes through regulatory amendments.

    India’s direct selling industry grew over 12% year-on-year in 2022-23, clocking an overall industry turnover of Rs 21,282 crore, an annual survey report released by the Indian Direct Selling Association (IDSA) and compiled by market researcher Kantar said on Wednesday.

    The report noted that the sector grew 8.3% by CAGR in the four-year period between 2019-20 and 2022-23.

    According to the report, wellness and nutraceutical products contributed 73.5%, while cosmetics and personal care accounted for 11.3% of the industry’s overall turnover. The number of active direct sellers touched around 86 lakh from 84 lakh in 2021–22, the survey said.

    Vivek Katoch, chairperson of IDSA, said in a statement: “The direct selling industry is poised to strengthen further in the years to come on the back of a promising regulatory framework by the government.”

    India ranked 11th in the global direct selling ranking in 2022, up from 15th in 2019.

    Direct selling companies sell to consumers through direct-seller members and not through retailers. Amway, Oriflame, Herbalife and other direct selling companies have been pushing for tighter regulation and clarity from the government, to differentiate them from multi-level-marketing ponzi companies.

    Mid last year, the consumer affairs ministry modified the Consumer Protection (Direct Selling) Rules, 2021, through a notification, to distinguish between fraudulent pyramid and money-circulation schemes and legitimate, direct-selling players. IDSA executives have said further clarity is needed in the definition of 'network of sellers'.

    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

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    ...more

    Stories you might be interested in

India had 86 lakh active direct sellers in 2022-23, ranking 11th globally.

Title:

Content:     The Economic Times daily newspaper is available online now.

    Direct selling industry grew 12% in 2022-23, crosses Rs 21,000 crore in turnover: IDSA

    Synopsis

    Indian Direct Selling Association and Kantar's report revealed a 12% industry growth to Rs 21,282 crore turnover. The sector aims to strengthen with government support, distinguishing from fraudulent schemes through regulatory amendments.

    India’s direct selling industry grew over 12% year-on-year in 2022-23, clocking an overall industry turnover of Rs 21,282 crore, an annual survey report released by the Indian Direct Selling Association (IDSA) and compiled by market researcher Kantar said on Wednesday.

    The report noted that the sector grew 8.3% by CAGR in the four-year period between 2019-20 and 2022-23.

    According to the report, wellness and nutraceutical products contributed 73.5%, while cosmetics and personal care accounted for 11.3% of the industry’s overall turnover. The number of active direct sellers touched around 86 lakh from 84 lakh in 2021–22, the survey said.

    Vivek Katoch, chairperson of IDSA, said in a statement: “The direct selling industry is poised to strengthen further in the years to come on the back of a promising regulatory framework by the government.”

    India ranked 11th in the global direct selling ranking in 2022, up from 15th in 2019.

    Direct selling companies sell to consumers through direct-seller members and not through retailers. Amway, Oriflame, Herbalife and other direct selling companies have been pushing for tighter regulation and clarity from the government, to differentiate them from multi-level-marketing ponzi companies.

    Mid last year, the consumer affairs ministry modified the Consumer Protection (Direct Selling) Rules, 2021, through a notification, to distinguish between fraudulent pyramid and money-circulation schemes and legitimate, direct-selling players. IDSA executives have said further clarity is needed in the definition of 'network of sellers'.

    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    ...more

    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    ...more

    Stories you might be interested in

The Indian government modified the Consumer Protection Rules in 2022 to distinguish legitimate sellers and tighten regulation.

Title:

Content:     The Economic Times daily newspaper is available online now.

    Direct selling industry grew 12% in 2022-23, crosses Rs 21,000 crore in turnover: IDSA

    Synopsis

    Indian Direct Selling Association and Kantar's report revealed a 12% industry growth to Rs 21,282 crore turnover. The sector aims to strengthen with government support, distinguishing from fraudulent schemes through regulatory amendments.

    India’s direct selling industry grew over 12% year-on-year in 2022-23, clocking an overall industry turnover of Rs 21,282 crore, an annual survey report released by the Indian Direct Selling Association (IDSA) and compiled by market researcher Kantar said on Wednesday.

    The report noted that the sector grew 8.3% by CAGR in the four-year period between 2019-20 and 2022-23.

    According to the report, wellness and nutraceutical products contributed 73.5%, while cosmetics and personal care accounted for 11.3% of the industry’s overall turnover. The number of active direct sellers touched around 86 lakh from 84 lakh in 2021–22, the survey said.

    Vivek Katoch, chairperson of IDSA, said in a statement: “The direct selling industry is poised to strengthen further in the years to come on the back of a promising regulatory framework by the government.”

    India ranked 11th in the global direct selling ranking in 2022, up from 15th in 2019.

    Direct selling companies sell to consumers through direct-seller members and not through retailers. Amway, Oriflame, Herbalife and other direct selling companies have been pushing for tighter regulation and clarity from the government, to differentiate them from multi-level-marketing ponzi companies.

    Mid last year, the consumer affairs ministry modified the Consumer Protection (Direct Selling) Rules, 2021, through a notification, to distinguish between fraudulent pyramid and money-circulation schemes and legitimate, direct-selling players. IDSA executives have said further clarity is needed in the definition of 'network of sellers'.

    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    ...more

    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    ...more

    Stories you might be interested in

Companies still need clarity on what constitutes a "network of sellers".

Title:

Content:     The Economic Times daily newspaper is available online now.

    Direct selling industry grew 12% in 2022-23, crosses Rs 21,000 crore in turnover: IDSA

    Synopsis

    Indian Direct Selling Association and Kantar's report revealed a 12% industry growth to Rs 21,282 crore turnover. The sector aims to strengthen with government support, distinguishing from fraudulent schemes through regulatory amendments.

    India’s direct selling industry grew over 12% year-on-year in 2022-23, clocking an overall industry turnover of Rs 21,282 crore, an annual survey report released by the Indian Direct Selling Association (IDSA) and compiled by market researcher Kantar said on Wednesday.

    The report noted that the sector grew 8.3% by CAGR in the four-year period between 2019-20 and 2022-23.

    According to the report, wellness and nutraceutical products contributed 73.5%, while cosmetics and personal care accounted for 11.3% of the industry’s overall turnover. The number of active direct sellers touched around 86 lakh from 84 lakh in 2021–22, the survey said.

    Vivek Katoch, chairperson of IDSA, said in a statement: “The direct selling industry is poised to strengthen further in the years to come on the back of a promising regulatory framework by the government.”

    India ranked 11th in the global direct selling ranking in 2022, up from 15th in 2019.

    Direct selling companies sell to consumers through direct-seller members and not through retailers. Amway, Oriflame, Herbalife and other direct selling companies have been pushing for tighter regulation and clarity from the government, to differentiate them from multi-level-marketing ponzi companies.

    Mid last year, the consumer affairs ministry modified the Consumer Protection (Direct Selling) Rules, 2021, through a notification, to distinguish between fraudulent pyramid and money-circulation schemes and legitimate, direct-selling players. IDSA executives have said further clarity is needed in the definition of 'network of sellers'.

    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    ...more

    (You can now subscribe to our Economic Times WhatsApp channel)
    (Catch all the Business News, Breaking News Budget 2024 News, Budget 2024 Live Coverage, Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    ...more

    Stories you might be interested in

The traditional direct selling model has become obsolete, with Avon and Tupperware cited as examples of legitimate companies in the field.

Avon shifted its focus to recruitment in 2000 and was sold to Natura in 2020.

Tupperware's stock value has dropped over 90% in 5 years, with party planners earning low commissions.

Avon and Tupperware quit the Direct Selling Association in 2013-14.

Companies in the MLM industry can use automation to aggregate regulatory updates and standardize taxonomy, adapting to changing regulatory environments.

Title:

Content: Year-end tax prep: Managing regulatory updates for U.S. market expansion

Successful year-end tax preparation lies in the effective management of regulatory updates. It’s not just about knowing your tax rates or understanding your business’s nexus; it’s about staying abreast of regulatory changes. Imagine being on top of all your financials — knowing exactly how much you owe based on where your company operates — but missing critical regulatory updates.

A recent survey conducted by MetricStream polled 123 compliance professionals across North America and Europe. The survey uncovered a noteworthy finding: 19% of respondents reported spending up to a year adapting their business processes to comply with new regulatory requirements. This timeframe was once considered manageable, but now raises concerns given the rapid pace of regulatory evolution.

In the dynamic landscape of tax compliance, the ability to adapt swiftly to regulatory updates is key. As the financial year comes to a close, we delve into strategies for managing year-end tax obligations by navigating regulatory updates crucial for U.S. market expansion.

How to manage regulatory updates for U.S. markets

    1. Stay on top of regulatory updates

Specialist publications serve as primary sources for direct insights into legislative changes, revisions to the tax code, and emerging compliance requirements. Additionally, industry associations provide businesses with specific regulatory information tailored to their sectors, enhancing their understanding of changes directly impacting operations.

Keeping track of specialised content can be overwhelming. Automated solutions like Avalara can aggregate, interpret, and deliver real-time updates, ensuring businesses get industry-focused insights without being overwhelmed. Combining insights from publications and industry networks can help create a robust strategy to navigate shifts in U.S. sales tax regulatory policies.

    2. Standardise taxonomy

LA cohesive understanding of regulatory updates is crucial for businesses operating internationally — this requires standardising taxonomy. Imagine a multinational corporation operating in various countries, each with its own set of tax laws and regulations. Without a standardised taxonomy, interpreting and applying these regulations across different regions can be incredibly challenging and prone to errors.

Standardising taxonomy in this context refers to creating a uniform system for classifying and organising tax regulations, such as income tax rates, deductions, and reporting requirements. Instead of using different terminology or formats for similar regulations in different countries, the standardised taxonomy establishes consistent terms and categories. Let’s consider the classification of deductible expenses. Without standardised taxonomy, one country might refer to them as “business expenses”, while another uses the term “deductible costs”. This inconsistency can lead to confusion and mistakes in tax filings while operating at a global scale.

For global entities, a unified taxonomy should align with organisational hierarchies, ensuring consistency across geographies. By standardising taxonomy, the multinational corporation can create a common language and structure for categorising tax regulations across all locations.

    3. Assign regulatory responsibilities

To ensure clear regulatory roles, businesses should define and communicate specific responsibilities for those overseeing regulatory and compliance functions. Subject matter experts within the organisation become essential players in this process. These individuals possess a deep understanding of laws and regulations and can scrutinise updates that apply to the nature of the business. Businesses can employ cloud-based content platforms to deliver important information to compliance professionals. Timely delivery allows businesses to efficiently interpret and implement regulatory updates.

    4. Assess business impact

Assessing the business impact of regulatory updates is crucial. This involves a comprehensive evaluation of how each regulatory change affects the organisation. The goal is to identify precisely how each facet of the organisation may be influenced and what adjustments are required to maintain compliance. Impact assessment is not solely about regulatory compliance; it also considers the broader business implications. By understanding how regulatory changes may influence various operational elements, businesses can proactively adapt strategies, allocate resources, and make informed decisions to minimise disruptions.

Throughout this process, businesses can use tools and platforms to streamline the assessment, mitigating potential risks associated with non-compliance by thoroughly evaluating all relevant areas. Let’s briefly understand these tools and platforms:

  • Compliance management software: Centralises regulatory data, tracks changes, and automates compliance workflows.
  • Risk assessment tools: Identify and evaluate compliance risks with matrices, scenario analysis, and risk heat maps.
  • Regulatory intelligence platforms: Provide real-time updates and insights on regulatory changes and industry trends.
  • Compliance monitoring solutions: Continuously monitor adherence to regulations and help address compliance gaps promptly.
  • Collaboration platforms: Enhance cross-functional collaboration and communication among stakeholders involved in compliance activities.

    5. Design strategies to implement regulatory changes

Strategically implementing regulatory changes is the final critical step. This phase involves translating the insights gained from the impact assessment into actionable plans, ensuring a smooth and effective adaptation to evolving regulatory requirements. Formulating action plans includes defining workflows, assigning tasks to relevant individuals, and establishing approval processes. A standard workflow can guide the review and approval of proposed changes, incorporating escalation capabilities to address any overdue tasks.

This ensures everyone knows their responsibilities and timelines, minimising the risk of oversights or delays. Strategic implementation of regulatory changes helps businesses ensure compliance and seize opportunities for improvement. Achieving this balance demands a mix of technology, defined processes, and clear communication, where platforms like Avalara play a vital role in efficiently executing regulatory adaptations focused on tax compliance.

To summarise:

  • Automation platforms like Avalara can help organisations stay informed about regulatory changes to ensure compliance in the U.S. sales tax environment.
  • Establishing a unified system for categorising and organising tax terms facilitates consistent understanding and application across different regions and jurisdictions.
  • Clear regulatory responsibilities are essential for accountability, supported by cloud-based platforms delivering crucial information to seasoned compliance professionals. Identifying in-house subject matter experts, along with leveraging services like Avalara, is key for scrutinising updates and providing valuable insights.
  • Assessing the business impact of each regulatory update is critical. After the initial applicability assessment, business units conduct detailed impact analyses, identifying areas needing revision, including risks, controls, policies, procedures, training, and reports.
  • Finally, implementing regulatory changes through well-defined action plans incorporating workflows, task assignments, and escalation processes ensures a seamless adaptation to evolving compliance landscapes.

Overlooking U.S. tax and regulatory updates can lead to costly errors and compliance issues. This is where automation technology like Avalara becomes indispensable. By leveraging automation, businesses can simplify the otherwise overwhelming task of managing regulatory updates. With Avalara, navigating changes in regulatory policies becomes more manageable, helping to ensure smooth year-end tax obligations even amid evolving compliance requirements.

Know how your business can stay on top of regulatory updates. Request a consultation with Avalara U.S. sales tax experts.

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Assigning regulatory responsibilities and assessing business impact are also crucial for regulatory compliance, and compliance management software can centralize regulatory data.

Risk assessment tools and regulatory intelligence platforms can identify compliance risks and provide real-time updates.

Regulatory changes in countries like China have prioritized qualitative economic outcomes over growth, addressing population and education costs.

Title:

Content: Investment Management Agency: Strengthening Regulation Will Not Hurt China ’ s Economic Recovery
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Manulife Investment Management believes that the recent increase in volatility in China ’ s financial markets is mainly caused by regulatory changes in key sectors such as real estate, the Internet and education, but the bank believes that these new regulations should not have a significant impact on China ’ s economic recovery in the second half of the year in the short term, and will have a positive impact on the country ’ s socio-economic development and a number of key industries in the long term.
Zhang Liping, Manulife ’ s global head of fixed income research in emerging markets, said in comments on Tuesday that the Chinese government ’ s increased regulatory scrutiny of industries such as real estate, the Internet and education was part of a response to public concerns.
The broadening of credit spreads in individual affected sectors was moderate, despite a sharp reversal in market movements over the past week.
"We believe that the macroeconomic impact of these regulatory changes should be fairly modest and will not affect China's GDP growth in the second half of 2021, but will be beneficial to China's long-term socio-economic development," she wrote.
Since 2017, China has shifted its top economic priority from driving quantitative growth to encouraging more concrete qualitative outcomes.
In other words, economic development should be about bringing greater benefits to people ’ s daily lives, rather than simply pursuing impressive aggregate GDP data.
Based on this framework, the main objective of recent regulatory changes is to address the challenges of slowing population growth by reducing education-related costs and encouraging family formation.
As for the education sector, although the policy has dealt a heavy blow to the after-school remedial training industry, it is believed that the impact on the overall economy is relatively small, accounting for only about 0.7% of China ’ s GDP in 2019. The external remedial training business will continue to operate as usual.
The impact of new regulations on the Internet industry on the macro-economy should be limited, mainly aimed at improving employee welfare, cybersecurity and curbing monopoly power.
From a credit perspective, Chinese Internet companies will face structural challenges in terms of medium- and long-term growth and profitability, as the companies will face more resistance to using their market dominance and achieving cross-industry growth.
As the risk of these events continues to ferment, the bank expects the bond performance of China's Internet industry to continue to fluctuate.
Manulife also believes that the financial system should be able to respond to measures aimed at curbing speculation in the real estate industry, which will lead to more positive long-term prospects.
The average loan-to-value ratio (LTV) of the Chinese banking system is about 50%, and the excessive leverage of shadow banking and peer-to-peer lending through Internet financial platforms (P2P) has slowed over the past few years.
In addition, the People ’ s Bank of China (PBOC) will conduct multiple rounds of real estate related stress tests on the banking sector in the second half of 2020 to ensure that the banking system can withstand potential adjustments.
The bank also pointed out that some developers with sufficient land reserves and diversified investment channels in onshore and offshore markets should be more advantageous.
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These changes have encouraged family formation, reduced education costs, and improved welfare and cybersecurity.

The impact of these regulatory changes on the MLM industry is unclear and requires further research.

The COVID-19 pandemic boosted business for multilevel marketing firms like Nu Skin.

Title:

Content: We've detected you are on Internet Explorer. For the best Barrons.com experience, please update to a modern browser.GoogleFirefox

Nu Skin’s Biggest Customer Base Is in China. Now It’s Accused of Spreading Covid.

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The Covid pandemic was good for the business of multilevel marketing firms like Nu Skin Enterprises, as furloughed workers tried to make ends meet by selling vitamins and skin creams from home. Salespeople swelled the bottom of Nu Skin’s marketing ranks, and its stock tripled in value from March 2020 to a June 2021 peak of $62, before sliding back to a recent $47.

Now Covid is a problem for the company in China, the nation where Nu Skin (ticker: NUS) gets its largest number of customers and more than 20% of its revenue. A...

Nu Skin's stock tripled in value from March 2020 to June 2021.

Title:

Content: We've detected you are on Internet Explorer. For the best Barrons.com experience, please update to a modern browser.GoogleFirefox

Nu Skin’s Biggest Customer Base Is in China. Now It’s Accused of Spreading Covid.

  • Order Reprints
  • Print Article

The Covid pandemic was good for the business of multilevel marketing firms like Nu Skin Enterprises, as furloughed workers tried to make ends meet by selling vitamins and skin creams from home. Salespeople swelled the bottom of Nu Skin’s marketing ranks, and its stock tripled in value from March 2020 to a June 2021 peak of $62, before sliding back to a recent $47.

Now Covid is a problem for the company in China, the nation where Nu Skin (ticker: NUS) gets its largest number of customers and more than 20% of its revenue. A...

The pandemic is now a problem for Nu Skin in China, its biggest market, which accounts for over 20% of revenue.

Title:

Content: We've detected you are on Internet Explorer. For the best Barrons.com experience, please update to a modern browser.GoogleFirefox

Nu Skin’s Biggest Customer Base Is in China. Now It’s Accused of Spreading Covid.

  • Order Reprints
  • Print Article

The Covid pandemic was good for the business of multilevel marketing firms like Nu Skin Enterprises, as furloughed workers tried to make ends meet by selling vitamins and skin creams from home. Salespeople swelled the bottom of Nu Skin’s marketing ranks, and its stock tripled in value from March 2020 to a June 2021 peak of $62, before sliding back to a recent $47.

Now Covid is a problem for the company in China, the nation where Nu Skin (ticker: NUS) gets its largest number of customers and more than 20% of its revenue. A...

Changes in consumer behavior, like a shift to online shopping, have impacted the MLM industry by enabling subscription-based models.

Title:

Content: 01/6How subscription-based foods are changing the market

The surge in online shopping, coupled with its inherent ease, has empowered companies to harness the potential of subscription-based models, capitalising on evolving consumer preferences. In this article Deepak Agrawal, Co-founder and CBO of ProV Foods throws light on how the subscription model's enduring appeal lies in its trifecta of convenience, personalization, and sustainability. Regular product and service deliveries are a key selling point, offering customers the convenience of auto-renewals and fostering a deeper brand connection. Sustainability has emerged as a pivotal factor, with consumers actively seeking out environmentally and health-conscious food products. (Image: istock)

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02/6The Change

The coronavirus pandemic has drastically changed people’s purchasing processes, augmenting the paradigm shift to online platforms in several ways. With the strict implementation of lockdowns, and the subsequent social distancing measures, many physical stores temporarily closed, forcing consumers to procure the desired commodities online. While e-commerce giants already thrived in this space before the pandemic, shopping for consumer edibles, traditionally done in physical stores, witnessed a substantial online shift, and as a result, revenues burgeoned. (Image: istock)

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03/6Impact of online shopping

The growth and easiness of online shopping has enabled companies to leverage subscription-based models to capitalise on changing consumer behaviours and preferences. The model continues to thrive due to its convenience, personalization, and sustainability. The convenience of having products and services delivered regularly is a major USP for many subscription-based businesses. The customer benefits from convenient auto-renewals and a deeper connection with the brand (which learns more and more about what they want). Sustainability is also becoming a key factor as more consumers look to support environmentally conscious companies and reduce waste. (Image: istock)

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04/6The study

A recent study by Nielsen posits that the Indian e-commerce market for groceries grew by 300% in 2022, with subscription-based models playing a significant role. Within this surge, the nuts and dry fruits segment has seen remarkable growth, with a reported increase of 45% in online sales compared to the previous year. The ability to have products or services delivered to your doorstep on a regular basis can be a major time-saver and has led to the explosion of popularity of subscription-based models, particularly in the food industry. Consumers appreciate the convenience of receiving a regular supply of premium nuts and dry fruits through subscription services just as other grocery items. Personalised subscription boxes, including a variety of nuts and dry fruits, have become increasingly popular among health-conscious consumers. (Image: istock)

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05/6Subscription-based models

People are attracted to subscription-based models because it expands the scope of getting personalised products. New research from the Subscribed Institute shows that subscription businesses have consistently out performed sales revenue growth of non-subscription businesses. According to the study, subscription-based businesses have grown by over 437 percent post the pandemic. A lot of this growth can be attributed to personalization of products and services. Additionally, subscribers can be provided with exclusive access to new snack releases or limited-edition products. Offering discounts or promotions to subscribers can also incentivize sign-ups and loyalty. Companies can also offer a trial or sampling subscription to entice new customers. Providing a low-cost or free initial box can help potential subscribers experience the quality and variety of snacks offered. Considering the increasing awareness and consciousness of living a healthy lifestyle and the growing interest in health and wellness, emphasizing the nutritional value of snacks in your firm can highlight options that are low in sugar, high in protein, or meet specific dietary requirements. (Image: istock)

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06/6Challenges and opportunities

Like many things, the subscription-based model, while lucrative, poses some challenges and opportunities for the nuts and dry fruits segment. Ensuring a consistent supply of snacks to meet varying demands can be complex. Inventory management becomes critical to prevent overstocking or running out of popular snacks. Customer retention can be challenging as well, as subscribers may cancel their subscriptions after a short period. Snacking companies must continuously provide value and incentives for customers to stay subscribed. Aside from the aforementioned challenges, the subscription snack box market can be highly competitive. New entrants frequently emerge, and established players must work to differentiate themselves through unique offerings, quality, and marketing. (Image: istock)

Contributed by: Deepak Agrawal, Co-founder and CBO Proventus Agrocom, ProV Foods

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The subscription business has grown over 437% post-pandemic, driven by convenience, personalization, and sustainability.

MLM companies face challenges including supply management and customer retention due to potential subscription cancellations.

The pandemic has driven growth in industries like the herb oil market, due to increased demand for organic and natural products.

The herb oil market is expected to grow due to increasing health consciousness, benefiting MLM companies.

The men's innerwear market has seen a post-pandemic sales decline, largely due to mass brands' inventory pile-up.

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After health, men's innerwear hit by post-pandemic affects

A report noted that men tend to buy more underwear when the economy is dipping, which if true, is what happened in the pandemic.
Last Updated 16 September 2023, 14:49 IST

As the festive season is around the corner, Indians are back to their philosophy of shop till you drop. With office parties and house parties marked in everyone’s calendars, the demand for festive clothing, cosmetics and shoes have been hitting the roof for sure. But you know what is not experiencing an increased demand? Men’s underwear and athleisure.

During the pandemic, when most of the people were working from home and preferred to be in comfort clothing, several innerwear companies had started selling an athleisure segment as well to meet the rising demand of comfort wear.

However, now that the people are mostly back to work from office for over a year, the demand for athleisure has lowered, reported The Economic Times.

While Rupa & Company’s director Ramesh Agarwal said the sales in the athleisure category was “relatively” flat in the first quarter, Yogesh Kabra, the founder of XYXX brand noted that there wasn't a dip in sale for the premium category and blamed the stock pile-up of mass brands as one of the factors.

“Most consumer products are going through a premiumisation trend post-pandemic. Most of the brands that suffered the dip in sales, are mass brands. And this was mainly because of inventory pile-up," Kabra told the publication.

The innerwear market in India is estimated to be worth around Rs 48,123 crore, the publication reported quoting Euromonitor International. The men’s and women’s category is believed to contribute around 39 per cent and 61 per cent, respectively.

The managing director of Page Industries, the parent company of brands like Jockey and Speedo in India, said, “The first quarter witnessed a sequential revenue growth of 28 per cent and a volume growth of 31 per cent. During this quarter, the macro headwinds and market conditions did pose some challenges leading to a slight year-on-year degrowth reflected in a 7.5 per cent decline in revenue and 11.5 per cent decline in volume compared to Q1 of the previous year.”

Apart from Page Industries, several other listed men's underwear brands also reported degrowth.

As per industry players, miscalculated inventory for this year and price fluctuations of raw materials may be listed as the primary reasons behind poor sales in Q1 FY24.

Kabra pointed out that the demand for innerwear products increased in the pandemic leading to an increased stocking of inventory by retailers. While the inventory increased month-on-month to compliment the increased demand, unexpected change in demand patterns resulted in piling up of inventory.

“This is primarily happening for inventory stocked by offline retailers. The online channel sales have been growing steadily at 25 per cent-40 per cent. This industry does discount on pricing. And online channel sales, especially for men’s underwear, has no way dipped. This is purely a post-pandemic forecast sales miscalculation issue and will sort itself out in the next few months,” Kabra added.

Jockey India has experienced one of the strongest quarters in Q2 FY21 with sales growing by around 160 per cent quarter on quarter. This was despite an overall yearly revenue decline.

“Last Q1 (FY23) was a historically high quarter. I can say it was partly abnormal because of the supply-chain disruptions, which we had. And then there was a pent-up demand, there was 'revenge shopping' happening, so you could not compare that quarter with this quarter from a baseline point of view. That apart, the inventory is high,” Ganesh from Page industries said.

'Revenge shopping' refers to the sudden surge in purchase of consumer goods, after people have been denied their opportunity to shop, in this case, the pandemic was the reason.

If inventory remains unsold for 8-9 months, it is most likely that desperate retailers and distributors will engage in a price-discount war.

“If you go to the market, except a few, almost all the brands are having offers, promotions by one way or the other. When I look at retailers, there are a lot of schemes that are happening. If you look at it from a bottom line point of view, these are not sustainable, and it is not 'Ebitda' (Earnings Before Interest, Taxes, Depreciation, and Amortization) or bottom line friendly,” Ganesh of Page Industries said.

As Ramesh Agarwal, whole-time director, Rupa & Company Ltd shed light on 'volatile raw material prices' in 2023 for impacting the gross margins, he also said that their high advertising expenditure may have added to the problem.

“We witnessed growth in volume of around 5 per cent during this quarter. Also, pursuant to various celebrities onboarded in the preceding quarter across different product segments, the advertising campaign pre-planned resulted in higher advertising expenditure during the quarter at the rate of 12 per cent of the revenue,” Agarwal said.

Rupa & Company Ltd witnessed a decline in the annual revenue of around 21 per cent in FY23 and -9 per cent in Q1 of FY24 compared to FY23, the ET report read.

However, women’s innerwear did not experience the same hit as the males' did. The report believes that a reason for this is continued demand among women for athleisure and activewear. While the demand for sleep and loungewear did experience a commendable growth in the pandemic, activewear still drives a chunk of demand and further growth is expected.

The report also noted that men tend to buy more underwear when the economy is dipping, which if true, is what happened in the pandemic.

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(Published 16 September 2023, 14:49 IST)

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Premium innerwear brands have seen steady online sales growth, indicating a shift towards online shopping and premium products.