These “virtual fitting rooms” have the potential to not only enhance customer engagement but also reduce return rates and increase sales.

AI-powered virtual product try-on experiences continue to revolutionize online and in-person retail experiences, offering convenience and personalization. These “virtual fitting rooms” have the potential to not only enhance customer engagement but also reduce return rates and increase sales. Some direct selling makeup companies are already using forms of this experience while others are considering incorporating it for branded swag.

Zelig

MadaLuxe Group has introduced Zelig, an AI-powered virtual try-on and styling platform. The technology allows users to visualize how clothes, shoes and accessories would look on their body type by uploading a photo. The system also uses machine learning and computer vision allowing users to create different outfit combinations, save and share them before buying.

Despite the concept of virtual try-on not being new, with companies like Walmart, Google and Amazon investing in similar technology, Zelig claims to offer a “hyper-personalized online shopping experience.” It aims to replicate the experience of trying on clothes at a retail store.

The co-founders have invested privately in Zelig for three years, but they recently secured $15 million in Series A funding led by Hilco Global, valuing the pre-revenue company at $100 million. The funds will be used to enhance its personalization capabilities and develop additional features. While no brands were announced at the launch of Zelig, the association with MadaLuxe suggests potential future partnerships with high-end brands.

Google AR Beauty

Google has launched AR Beauty Ads, a new ad format that enables virtual try-on experiences for cosmetic products. The tool will replace the standard product image in Google Shopping ads and allow users to preview what different products might look like on them or a model. The ads will appear on mobile-specific channels including Google’s Shopping tab, Search and Google Images.

The launch of AR Beauty Ads reflects the tech industry’s increasing faith in AR as a potent marketing tool. Companies like Meta and Snapchat have already integrated AR ads into their platforms, and Google’s move is a continuation of its AR experimentation started with YouTube display ads in 2019.

Data from Shopify indicates that AR ads often outperform display ads, with 3D AR ads generating 94 percent higher conversion rates than their static 2D counterparts. Findings from Snap and Deloitte suggest brands offering AR experiences are 41 percent more likely to be considered by customers, and nearly three in four shoppers are willing to pay more for a product they can explore with AR.

Google’s own experiment with VR ads in 2019 resulted in almost a third of viewers spending more than 80 seconds trying on lipstick. The company claims that users who interact with virtual try-on tools on Google Search are more likely to spend time on a brand’s site; research a product; or make a purchase. By 2025, global AR ad revenue is projected to grow to $6.68 billion, up from $1.36 billion in 2020.

From the January/February 2024 issue of Direct Selling News magazine.

The post Magic Mirror first appeared on Direct Selling News.

Diversity. Equity. Inclusion. Seldom have three words been packed with so much potential, yet also mired in controversy. They can be bounced around like political footballs; serve as HR “to-do” boxes aimed at maintaining a status quo; or be harbingers of real change that accelerate the success of the people, companies and industries who understand that there’s a business case to be made for DEI and widen their strategic planning accordingly.

“Diversity is real. Diverse people do things differently. Diverse means we often live differently; have different priorities; eat differently; raise our kids differently; dress differently; wear our hair differently; we even worship differently,” John Fleming, a consistent advocate of the direct selling industry with a storied, decades-long career at Avon, who also helped build Direct Selling News (DSN) as its one-time Publisher and Editor-in-Chief, explained.

Fleming’s wide-angle perspective on DEI comes from decades spent in executive board rooms, where his thinking and performance track record supplied valuable input on strategic planning and problem-solving. But he’s well aware that undercurrents existed, as typically the only African-American in the room and a looming temptation for HR to check a few “diversity” boxes.

“I passed on many invitations to be part of committees and special task forces when I knew or surmised that the real objective was to try to check a few boxes without disturbing the status quo,” Fleming said.

So, Fleming comes at DEI with a uniquely informed perspective—one encompassing his life’s work within the direct selling industry, as well as one formulated in the potential and eager anticipation of its future.

It’s with the future in mind that DSN—supported by Fleming’s expertise—rethinks DEI and pushes its evolution from a one-dimensional HR-driven program to a multi-dimensional business growth strategy. This is the first in a series of articles we’ve entitled, The Business Case for Diversity, Equity and Inclusion.

Our hope is that readers use this as a primer to better understand DEI; sort out the state of DEI in their companies; and expand their thinking about its potential in helping them meet strategic goals.

Subsequent articles in this series will feature case studies of direct selling companies who have adopted DEI as a business growth strategy. We want to look in-depth at their decision making, action plans and results. If your company is actively participating in a multi-dimensional DEI business growth strategy and would like to share with our readers, please reach out to DSN Publisher, Patricia White.

The Multi-Dimensional Potential of DEI

Often, DEI falls under the auspices of HR. It is here where programs are established to foster a welcoming work environment for under-represented groups, while simultaneously protecting the company by eliminating bias and unfair discrimination in the workplace that could constitute a violation of law.

And while those efforts are vital to employee, cultural and corporate growth as well as maintaining proper legal standing, Fleming believes DEI holds even greater potential when considered as a multi-dimensional business strategy. The business case for DEI lives not in the one-dimensional HR world, but rather in the realm of market growth potential, strategic business acquisition, customer/representative targeting and results-oriented communication, all of which drive profitability.

Going Global or Staying Home

Going global has long been the steppingstone of choice by direct selling companies seeking to make leaps forward in market growth. And it’s no wonder looking at the World Bank’s 2022 Top 15 GDP list.

To make a successful run at any international market takes commitment to research and fostering in-depth understanding of economic and cultural landscapes very different than the United States.

“It has always been interesting for me to observe that when we decide to go global for strategic growth reasons, we are actually committing to DEI. Yet, we may not be as committed when we manage the same enterprise locally,” Fleming said.

Fleming’s point is that there is intrinsic value in companies parsing out and capitalizing on the strengths and potential we have here at home when it comes to DEI. No country outpaces the US in terms of GDP, standing at $20.89 trillion. And our segmented annual purchasing power of ethnic- and age-based groups mirrors the GDPs of entire countries.

“The United States is the most diverse marketplace in the world. However, many businesses go global to access talent pools, reach new markets and hopefully activate new growth opportunities,” Fleming said.

He believes there are cost-effective growth opportunities right here at home—driven by the same DEI principles now used by companies in international expansion—without the challenges faced when going global.

“Theoretically, a new company could build a successful enterprise targeting any one of the consumer segments. Some of the segments are as large as other countries, and they are all within the borders of the United States of America,” Fleming said.

Evolving Business Growth through DEI

How then might a company take effective steps toward a multi-dimensional DEI business growth strategy here at home? The first step in making a business case for DEI is knowledge.

Fleming vividly remembers a mandatory course called “Finance for Non-Finance Managers” during his years at Avon. “It helped to change my thinking from the more emotional, optimistic mindset to a more strategic mindset.”

Such a course teaches the essence of the business model and the reasons for its existence. It focuses on how the business grows and the importance of gaining market share in the marketplace. It also teaches people how to think strategically with clarity and purpose, no matter which department is leading a conversation.

The goal, Fleming said, is to develop a keen, company-wide understanding of the financial components necessary to grow a business. It is possible to cultivate a group dynamic and mindset that is mindful of growth, regardless of proximity to sales and marketing efforts.

Who Do You Invite to the Table?

In his experience, Fleming believes there to be three steadfast rules, if not universal laws, direct selling companies should follow when strategizing about new business acquisition.

1/ It is difficult to understand the motivations of women without including women in the conversation.

2/ It is difficult to understand the nuances of ethnic groups and their cultural differences if such representation isn’t included in the conversation.

3/ Pictures and data don’t tell the whole story. Relying on data alone often results in a lack of understanding about diverse groups of people and misunderstandings about DEI and its potential.

An estimated 80 percent of consumers are more likely to buy from brands that tailor experiences to customer preferences, and emotionally connected consumers are two times more valuable than highly satisfied ones.

In the past, direct selling as a channel of distribution, was highly dependent on the field of independent contractors to lead new business acquisition. Grassroots prospecting recruited customers and distributors/consultants primarily from existing field networks.

But today, companies have more options and greater control. They use marketplace research and data to strategize new business acquisition, and then provide intermediaries in the field with the right tools, at the right time and using the right messaging to reach target markets more effectively.

So, who sits around the conference table giving input during new business acquisition strategy sessions makes a big difference.

According to Innovation, Diversity and Market Growth, a white paper put forth by researchers from the Center for Talent Innovation, teams that have one or more members who represent the gender, ethnicity, culture, generational or sexual orientation of a target market are as much as 158 percent more likely to innovate effectively for that end user.

Granted, some geographies are less diverse than others, and therefore have less diverse hiring pools. And the industry has long favored sales and marketing candidates who possess experience related to direct selling. But Fleming posits, neither is an “acceptable rationale for not pursuing diverse talent that might serve to improve every facet of the business model, especially the sales and marketing effort.”

Colleges and universities are in the business of doing this. They recruit raw talent and potential, then proceed to develop those individuals over time. Perhaps the direct selling industry would be better served if it looked at leadership recruitment in the collegiate way—discover, mentor and develop.

“It appears logical that those who represent the various segments might bring new and relevant ideas to the conversations and decision making,” Fleming said.

But as Forbes reported, “Implicit biases are driving certain employees out of leadership positions and resulting in a less diverse workforce, impacting the bottom line.”

According to the American Psychological Association, “Individuals’ perceptions and behaviors can be influenced by the implicit biases they hold, even if they are unaware they hold such biases. Implicit bias is an aspect of implicit social cognition: the phenomenon that perceptions, attitudes and stereotypes can operate prior to conscious intention or endorsement.”

“Throughout the world, we have economies that are built, developed and managed by people who do not look or think exactly the way we do, nor speak our language. They not only survive; they also thrive and compete effectively,” Fleming explained.

Choosing Who and What is Most Important

It is certainly possible to live within and operate a business in the most diverse country in the world without appealing to broader, more diverse audiences. But doing so is not without risk.

Business models without a DEI focus may limit their effectiveness in attracting broader marketplace support that stakeholders and investors expect. They may also hinder the ability of their brand partners and affiliates to expand their independent businesses in a marketplace of opportunity that is now larger than a single individual’s identity—a marketplace that is increasingly built upon numerous authentic voices coming from diverse groups of people.

“We can choose what we do and how we do it more so than our counterparts in any other nation,” Fleming said. “Therefore, we can choose to determine what matters most.”

That applies to not only consumers whose loyalty direct selling companies covet, but also the contemporary decision makers who seek effective strategies to expand available market share segments.

Perhaps, it’s time to re-frame those conversations and ask a new question: What is our effective market share within the segments that are important to us?

“Once we clearly understand the business case for being diverse in the decision-making ranks of the company, the clearer we become about the value to be gained from thinking and planning that offers a diverse perspective. To think, plan and budget effectively, how we attract diverse segments requires representation that understands the targeted segments,” Fleming said.

It is precisely what direct selling companies do when opening international markets. “Why would we ever think that we can operate differently locally, if we are intent upon growing market share?” Fleming asked.

Share Your DEI Success Story

We’d love to hear how your company adopts a progressive, growth-oriented approach to DEI. Please contact our Publisher Patricia White at pwhite@directsellingnews.com. You could see your company’s story featured in a future article in DSN.

From the January/February 2024 issue of Direct Selling News magazine.

The post The Business Case for Diversity, Equity & Inclusion first appeared on Direct Selling News.

“Coming together, we are set to unleash an unparalleled synergy, combining our unique strengths to foster growth and opportunities, not only across Korea but throughout Asia,” said Robert Stevanovski, ACN Chairman and Co-Founder. “Our journey with our respected counterparts has been rooted in mutual admiration and a deep, personal connection spanning more than two decades. This is more than a business transaction; it’s a fusion of visions, paving the way for our employees, independent salespeople, and all stakeholders to thrive in an exciting, expansive new era.”

ACN Korea is known as a “Top 20” company in its sector. With this acquisition, both companies will reside under the Neora brand and will work together to create a platform for entrepreneurial growth in direct sales in Asia Pacific.

“I am thrilled to welcome ACN Korea into the Neora family,” said Jeff Olson, Neora Founder and CEO. “The ACN team has built an impressive legacy, and our shared commitment of ‘Making People Better’ aligns perfectly with our global mission. I eagerly anticipate the Emerge Event on February 17, where we can get to know each other better and share our vision for the future. Together, we are poised to build a transformative legacy in the Korean market.”

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According to this accumulated data, Millennials and Gen X are feeling the most financial pressure. Payday loan assistance has increased among this group, signaling potential credit problems, as well as auto repossessions and billing disputes.  

This CSLI data is in sharp contrast to economic indicators that show strong GDP growth and record holiday spending, but the growing economic pressures that Americans report feeling is not expected to decline in the coming months as bankruptcies and foreclosures predict instability for consumers nationwide. 

“Despite rosy macroeconomic signs, our data reveals a concerning rise in consumer debt struggles–from bankruptcies to car repossessions,” said Warren Schlichting, LegalShield CEO. “With rising inquiries about foreclosures and missed bill payments, we’re monitoring this retail-level financial stress. People may not be able to cover costs despite positive jobs reports and interest rates.” 

The post Consumer Financial Stress Reaches Three-Year High  first appeared on Direct Selling News.

“Receiving our GFSI certification is a landmark moment for USANA and our manufacturing capabilities,” said Jim Brown, USANA President and CEO. “In the crowded health and wellness space it’s important to differentiate yourself. Receiving this certification is a great way for us to do just that. I’m extremely proud of our manufacturing and quality teams who have implemented the standards and practices necessary to pass this demanding audit.” 

The goal of GFSI is to reduce recalls and deliver safer products to consumers, and this certification signifies that USANA’S enrobed snack bars and drink mix powders meet stringent requirements for food safety management systems. 

“SQF is considered to be the highest standard in the industry, and our certification with them places us at the top of the mountain,” said Walter Noot, USANA Chief Operating Officer. “Having SQF certify our dedication to the safest and highest-quality production standards is a huge benefit to us—especially with our foods products. I look forward to the new opportunities this certification can create for us. Thank you to everyone at our USANA foods facility for all their hard work.” 

The post USANA Manufacturing Facility Earns GFSI Certification  first appeared on Direct Selling News.

Highlights from Plexus’s 2023 philanthropic initiatives include: 

• Donating more than 300,000 meals through Feeding America 
• Hosting the Pima Center Community Walk at the Plexus headquarters and contributing $127,000 in monetary and in-kind donations to the Phoenix Children’s Center for Heart Care 
• Partnering with Junior Achievement of Arizona in a three-year commitment to provide experiential learning for elementary students  

“At Plexus, we truly love to spend time serving the community by volunteering,” said Elizabeth Woods, Plexus Worldwide Senior Manager of Corporate Social Responsibility. “We are enthusiastic about increasing our volunteer efforts in 2024, continuing our giveback, and providing opportunities through community partnerships.” 

The post Plexus Donates More than $1 Million and 2,000 Volunteer Hours in 2023  first appeared on Direct Selling News.

Inclusion in this list required annual revenue of more than $2 billion and status as a privately held company. Amway’s revenue in the previous fiscal year reached $8.1 billion, putting it above household names like Staples and Chick-fil-A. 

In late 2023, Amway announced a new corporate strategy that is expected to take advantage of the unlimited growth potential found in China and help the company continue to expand its global footprint and market share.

The post Amway Named to Forbes 2023 List of America’s Largest Private Companies  first appeared on Direct Selling News.

In his keynote titled Put Customers at the Center to Embrace the Future, Sammy Lee, the fourth-generation Executive Chairman of the Lee Kum Kee Group, detailed the responsibility that leaders have to redefine the approach to direct selling in a way that prioritizes customer expectations. 

“Let us become the ambassadors of trust, the KOS for customers, and advocators for the preservation of Chinese health regimen,” Lee said. “Through every word we say and every action we take, let us build trust with our customers. I believe that as long as we are united in thoughts and actions, we will achieve our grand corporate vision and become the most trusted company for centuries to come.” 

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With this new partnership, Nature’s Sunshine will now supply the Tiger-Cats athletes with its range of nutritional products, including Power Beets, Power Greens and Collagen, to help them enhance their training sessions and overall wellbeing. 

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Rankings for this score were determined based on customer satisfaction surveys of more than 9,000 energy customers. UW scored highly for its customer service and quality of communications about energy costs. 

“We’re delighted to have secured the highest overall score for Which?’s latest annual energy firm rankings,” said Stuart Burnett, Utility Warehouse Co-CEO. “As many people continue to face cost-of-living pressures, we’re seeing increasing numbers of customers join Utility Warehouse to take advantage of our market leading services, including our fixed rate energy tariffs. It’s thanks to our multiservice business model, which enables customers to bundle services together, that we can deliver big savings for households on their monthly bills.” 

The post Utility Warehouse Given Highest Overall Score by Which?  first appeared on Direct Selling News.