Direct-selling skin-care company Rodan + Fields has posted a 90 percent increase in sales year-over-year, bringing in about $627 million for 2015, the company said.
Those numbers bring the business to number two in the U.S. prestige skin-care market, according to Euromonitor, which also pegs Rodan + Fields as the fastest-growing skin-care brand in the U.S. over the past five years. This is the first time the private company has reported sales figures.
Katie Rodan and Kathy Fields, the dermatologists who started Proactiv, founded the business in 2002. The duo bought the company back from the Estée Lauder Cos. in 2007, took it out of department stores, and relaunched it as a direct-selling business in 2008.
“A big part of our success is going back to the idea that Dr. Rodan and Dr. Fields came up with, which is how do we bring dermatologist results and solutions to the home,” said president and chief executive officer Diane Dietz. Dietz joined the company in January from Safeway Inc., succeeding Lori Bush.
Dietz credits the product, roughly 150,000 Rodan + Fields independent consultants and “community commerce” — a sales model by which consultants and digitally market and connect to consumers — for the brand’s performance. “What really stood out was focusing on the benefits of our product and staying incredibly focused on the antiaging and benefits of each individual line,” Dietz said.
The company’s community commerce model is supported by Rodan + Fields on the technology front. “The models have dramatically changed for how you reach and talk to consumers,” Dietz said. “Our model is to help the consultants really reach the right consumer targets for the product.” That includes encouraging consultants to use social media.
The company started its international expansion plan in 2015, branching out into Canada last February. So far, that undertaking is “going really well,” Dietz said. “We have several markets we’ll expand in in the next few years.” New product launches are coming in 2016, according to Dietz.
Rodan + Fields’ preferred customer program is growing, too, said chief brand officer Lynn Emmolo. The group, now more than 700,000, automatically receives new product every 60 days, plus discounts and free shipping. The company’s product lines include Redefine, Reverse, Unblemish and Soothe, each of which is meant to address a specific skin concern. Rodan + Fields also makes sunscreen and other products.
Deitz, who has held her post for roughly three months, is incorporating her consumer packaged goods experience into the new role. “Most of my career was in the oral-care segment for Procter & Gamble Co., and we had a similar strategy, which was an idea of ‘how do you bring dental benefits that are available in the dentist’s office into the home,’” Dietz said.