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In this 24-page issue NBJ covers the $6.9 billion direct marketing sales channels for supplements.
Excerpt from overview article:
Multilevel marketing tops direct-to consumer sales. Mail order, internet,direct response and practitioner sales
all outpace retail in 2004.
An interesting thing happened on the way to the mainstreaming of dietary supplements. First, after many prognosticators foretold the mass market dominance of supplement sales, fortunes reversed and natural & specialty stores outgrew the mass market by a large margin over the past two years. Now as 2004 sales data becomes
clearer, it is apparent that direct sales growth outpaced all retail channels. If—as many in healthcare and nutrition hope—the supplement industry draws more consumers into
regular usage, it will not be the grocery, drug and mass market stores of America that will lead the way.
This comes as no surprise to direct sales advocates that have consistently asserted that the selling supplements is best done by a direct marketer. New products in particular are well suited to ‘relationship’ sales—a recent example
being the growth of liquid botanical supplements at...
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FIGURES INCLUDED:
- U.S. Supplement Growth by Channel in 2004 (Natural & Specialty, Mass Market, Mail Order, MLM, Practitioner, Internet)
- Top Direct Sales Companies in 2004
TABLE OF CONTENTS:
Overview: Direct marketing in supplements generates sales of $6.9 billion as multilevel
marketing companies make a strong showing ...................................................................... 1-5
Liquid health tonics pep up the network marketing channel: Morinda, XanGo and Monarch
Health Sciences specialize in the category ........................................................................ 6-9
Scott Van Winkle of Adams Harkness analyzes changes to the direct selling model in the
Internet era. Operating conditions improve, and Wall Street likes what it sees ................... 8-9
Chinese government chooses Avon for direct selling trial; Amway and NuSkin prepare
for a new regulatory regime in what could prove to be the biggest MLM market of all ...... 9-12
Tiens North America establishes a network marketing presence for TCM ......................... 13
Avon builds momentum in dietary supplements, rolls out pilot program for China ............... 14
After a restructuring year, Unicity International is positioned for growth. Unicity identifies
an opportunity in integrative medicine, plans program for health professionals ................... 15
Publicly traded Natural Health Trends Corp. doubles sales ............................................... 16
New party plan company Daisy BlueNaturals takes steps towards $1 million in sales ...... 17
Advocare advocates science-backed products—and income-generating appeal .......... 17-18
Nutrilite forms strategic alliance with Interleukin Genetics to target inflammation ............ 18
Approaching 50 years in business, GNLD ranks among the largest nutrition MLMs ............ 19
DRTV can trigger meteoric growth, but transitioning to retail should be the goal ............ 20-21
NBJ Stock Reporter: Hansen and USANA pace the NBJ in Q1 2005 ........................... 22-23
COMPANIES INCLUDED:
Adams Harkness, Advocare International, Alticor Inc., Amway, Avon China, Avon Products, Avon Wellness, China Natural/Organic Products, CortiSlim, Daisy Blue Naturals, Direct Selling Assn, Don Potter and Associates, Electronic Retailing Assn, FreeLife, GNLD, Hansen Natural Corp., Hawthorne Direct, Herbalife, Infomercial Monitoring Service Inc, Interleukin Genetics, Jordan Whitney, Lexxus, Life-Flo, Lifeway Foods, Mannatech, MD Beauty Inc, MLM International Assn, MLM Watchdog, Monarch Health Sciences, Morinda Holdings Inc , Natren, Natrol Inc., Natural Health Trends Corp, Network Business Marketing Journal, Nu Skin Enterprises, Nutrilite, Pharmanex, Pure World, QVC Inc., Reliv International, Rich S. Bell and Associates, Shaklee Corp, SPINS, The Yucaipa Companies, Tianshi Group, Tiens North America, Transactional Marketing Partners, Unicity International, USANA Health Sciences, Wild Oats Market, Window Rock Enterprises, XanGo LLC, Yalon
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