Tag Archive for Newsletter

CAbi To Enter Canada

 
CAbi, one of the largest direct sale women’s apparel businesses in the U.S., is entering the Canadian market this week.
The Canadian market will include all provinces, except for Quebec, and represents the first foray outside of the U.S. for the 14-year-old company. CAbi — Carol Anderson by invitation — was cofounded by Kimberly Inskeep, who is president and chief culture officer, designer Carol Anderson and 10 other individuals.
CAbi was acquired three years ago by two private equity firms, J. H. Whitney & Co. and Irving Place Capital.
Rick Perkal, a senior adviser at Irving Place, said the model was an attractive one because it was about “women helping other women feel better about themselves.” He said if the Canadian expansion goes well, the company would consider bringing the brand to other English-speaking countries.

Michael C. Salvator, senior managing

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India Puts MLM Legislation On Hold

 
A proposed Bill to check fraudulent multi-level marketing (MLM) schemes has been put on hold by the Indian government.
The Finance Ministry had started the process to amend Prize Chits and Money Circulation Schemes (Banning) Act, 1978, to check the menace of ponzi schemes which continue to defraud investors of their hard-earned money.
The ministry informed a recent meeting of representatives of Central revenue intelligence and law enforcement agencies that the amendment Bill “has been put on hold for the time being”, official sources said.
It was also informed that an inter-ministerial group (IMG) formed under Additional Secretary, Department of Economic Affairs, is looking into all aspects including the amendment of the Act, they said.
The Finance Ministry had earlier obtained comments from the industry on the amendments to the Act for a framework for regulation

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Vorwerk Italy Reaches Record 504 Million Euro In 2014

 
Vorwerk Folletto, the Italian subsidiary of the Vorwerk Group, a leading European direct selling company has announced a turnover of 504 million Euros for 2014, a record number for the fifth consecutive year.
The numbers are up 1.1% compared to 2013 and the company says it’s their most successful year yet in Italy.
The Italian market remains the most important for the entire Vorwerk Group , a leading direct selling based in Germany, which has more than 40,000 distributors in 75 countries worldwide and in 2014 generated sales of 2.7 billion euro.

Patrick Barsotti, President of Vorwerk in Italy say about the company’s success, “We are very pleased with the continued years of success, achieved in a particularly difficult economic environment. This demonstrates the value of our product and the system of promotion based on demonstration at home and on direct

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LR Health And Beauty Appoints New CEO

 
German Direct Sales Company LR Group has appointed Dr. Thomas Stoffmehl as CEO of LR Health and Beauty effective September 2015. Dr. Stoffmehl, 44 is the former CEO of bofrost*, Europe’s largest direct seller of frozen food and ice creams.
The advisory board of LR Health & Beauty Systems GmbH (LR), one of the leading suppliers of premium health and beauty products in direct sales has introduced an ambitious, international growth strategy two years ago. This includes application of the LR promise “More quality for your life” along the subjects of brand development, innovation leadership, increased standardisation of the business model, digitalisation as well as strengthening the company’s global presence. 
Against the background of the ambitious strategic and operational challenges, the Advisory Board of LR Group decided to further reinforce the Management Board with the  appointment

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Annique CEO Appointed South Africa DSA Chairman

 
Ernest du Toit, CEO of South African direct selling company, Annique Health and Beauty, was appointed chairman of the Direct Selling Association of South Africa at a recent directors meeting in Johannesburg on 21 July 2015.  He will replace out-going chairman, Richard Clarke, who has decided to focus on a new business venture, effective from 1 August 2015. 
Ernest’s career has seen him develop his skills in marketing, sales, strategy development and general management, over more than 20 years. During this time he worked with the packaging giant, Tetrapak, and at South African Breweries head office, after which he acquired and ran his own advertising agency. In 2007 Ernest assumed management of and ultimately acquired Annique Health and Beauty, which has shown exponential growth over the past eight years. Ernest became a Director

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Italian Direct Selling Industry Q1 Turnover 130 Million Euros

 
AVEDISCO, the Italian Direct Selling Association has started 2015 with a very positive trend. With a turnover of 130 million euro in the first quarter and an overall increase of 17.83%, member companies of AVEDISCO began the year with a significant increase in turnover compared to the same period in 2014.
The data released by the center of studies and statistics at AVEDISCO, attests to the positive trend in the first quarter 2015, with the Food and Nutrition sector leading the growth with a turnover of 93.3 million euro, an increase of 21.95% over the same period last year.
The cosmetics and fashion accessories sector had a turnover of 11.3 million euros while the home and durable goods sector had a turnover of 10.7 million euros. The textile and services sector experienced significant growth at 20.89% and 18.8% increase respectively.
The

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Jeunesse Rewards Thousands With Luxury Trip To Dubai

 
More than 3,500 Independent Distributors earned a luxury trip to Dubai through Jeunesse’s incentive trip program for its Europe, Asia Pacific and Greater China regions. 
Jeunesse rewarded more than 3,500 of its Independent Distributors with one of three trips to Dubai. European Distributors toured Dubai April 29–May 4; Distributors from the Greater China region went May 9–14; and incentive trip winners from Asia Pacific were there May 14–19.
Distributors were welcomed to the JW Marriott Marquis Dubai with a reception featuring local entertainment. All three groups enjoyed the Dhow Cruise, shopping at Dubai Mall, a desert safari day, a Ski Dubai experience, henna tattoos, safari dune driving and camel rides.
They also took a photo tour which included sites such as Burj al Arab and a visit to the world’s tallest building, Burj Khalifa.

“We are

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Herbalife Wins Dismissal Of ‘Pyramid Scheme’ Lawsuit

 
BisJournals.com reports: 
A federal judge has once again dismissed a lawsuit accusing nutritional products maker Herbalife Ltd. of misrepresenting its business structure and sales practices as legitimate when it amounted to a pyramid scheme, a charge the the company has denied.
U.S. District Judge Dale Fischer in Los Angeles on Tuesday said the plaintiffs, led by the Oklahoma Firefighters Pension and Retirement System, did not show that Herbalife(NYSE: HLF) or its chief executive, Michael Johnson, defrauded shareholders, according to Reuters.
Fischer in March had dismissed an earlier version of the lawsuit.
Shareholders had filed suit claiming they lost money after billionaire hedge fund manager William Ackman accused Herbalife of operating a pyramid scheme. In December 2012, Ackman said his firm, Pershing Square Capital Management LP, had made a $1 billion bet that Herbalife’s stock price would fall.
Fischer in his dismissal of the lawsuit in March said Ackman’s

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The MLM Attorney: The Economics Of A MLM Law Suit

 
Kevin Thompson, the MLM attorney, has published an interesting article about Ligitation. Ligitation is a term for a law suit, action, or cause instituted or depending between two private persons in the courts of (USA) law.
Kevin Thompson:
The Economics of MLM Litigation
Thompson Burton’s MLM law practice often fields questions from companies looking to sue distributors for various reasons. We also take calls from distributors that are being sued by their former network marketing company.  We’ve seen the same issues litigated, over and over, from both sides, across the country. The surface reasons for these suits are usually the same: cross-recruiting. 
Distributor Sam wants to sue Company XYZ because Sam was terminated after joining a new network-marketing venture.  Or Company XYZ sues Distributor Sam for recruiting XYZ distributors for disparaging the company and

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Avon Turns A Profit For First Time In Years

 
The Wall Street Journal reports: Avon Products Inc. may be seeing some light at the end of the tunnel.
The door-to-door seller of beauty products reported another quarter of sales declines, but its beleaguered U.S. business showed a profit for the first time in years, putting Avon on track to reach one of Chief Executive Sheri McCoy’s goals in her attempted turnaround of the company. 
New York-based Avon on Thursday said second-quarter revenue fell 17% to $1.82 billion, dragged down by many foreign currencies weakening against the U.S. dollar. Excluding currency effects, sales were flat overall, with declines in Brazil, the U.S. and elsewhere erasing gains from Russia and the Philippines. 
Avon sells a wide range of cosmetics, perfumes and accessories through a network of roughly 6 million representatives world-wide. The number of representatives actively selling products slipped 2% in

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