Rodan & Fields looks at the direct-selling channel through a modern lens.
“Think of it as crowdsourcing distribution, especially in today’s connected environment,” Amnon Rodan, chairman of Rodan & Fields, said during his presentation at the WWD Beauty CEO Summit.
The founders of the antiaging skin-care brand, Dr. Katie Rodan and Dr. Kathy Fields, purchased the company back from the Estée Lauder Cos. Inc. in 2007, and then relaunched it in March 2008 as a direct-selling enterprise.
The move from retail to direct selling has served the company well. “We were established in the channel in 2008 with a little over $4 million in revenue and 16 employees. Last year, we finished with more than $200 million in revenue — and that’s only from the U.S., where we operate — and 190 employees.” He noted that the brand now has approximately 50,000 consultants, or independent sales representatives, and 170,000 subscription customers, who purchase the brand as a 60-day regimen. It’s a strategy learned from the doctors’ acne brand Proactiv.
“We go to market with a regimen approach because our belief is that a single [stockkeeping unit] cannot deal with the complex skin concern of our customers,” he said. He later noted that 56 percent of its revenue comes from subscription autoship, adding the company’s message that “antiaging is not curable but manageable” has help to attract and retain subscribers.
Rodan acknowledged that in his view the direct-selling channel is largely misunderstood, but that it is being transformed by three major changes. First, everyone is connected, particularly through social platforms, which in his view has made the individual more powerful than corporations. Second, subscriptions, or autoships, create a sustainable revenue flow, and third, digital technology has emerged as major tenant of direct-selling companies.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion