Dr. Katie Rodan and Dr. Kathy Fields established Rodan + Fields in 2002 and moved the business whole cloth in to the direct sales space in 2008. That business model has proven successful for the brand and has led to the current plans for expansion: “Our brand vision is a global one and our Canadian launch is a key strategic milestone on our globalization roadmap,” said Lori Bush, president and CEO.
International outlook
The company is confident in the level of consumer demand for Rodan + Fields products beyond the states. Additionally the move in to Canada “validates the foundational infrastructure that will enable us to effectively extend our business model beyond North American borders," Bush said in a statement to the press.
New markets come with new regulations. “The product line offered in Canada will be a select version of the U.S. lineup and the company has obtained all required approvals from Canadian regulatory agencies,” confirms the company’s statement about the expansion.
Exponential
Alluding to research that identifies anti-aging products as the fastest growing segment of the Canadian skin care market in recent years, “Rodan + Fields projects to grow the business to several thousand Independent Consultants and Preferred Customers within its first year in Canada.”
Auspiciously, analysts at market research firm Euromonitor point to direct sales as a top beauty trend in the Americas. “Direct selling will bring products to a wider range of socioeconomic classes over the next five years and will push consumers to try specialized products,” according to comments from the firm published last year in Cosmetics Design.
Direct competition
Despite a promising forecast, direct sales beauty companies are seeing mixed results. Mary Kay recently announced double-digit sales growth globally for the past year.
While rumours stir around Avon regarding a potential private equity deal. And, that company has recently moved to further support its sales representatives with a redesigned e-commerce platform. “The new site and a recently launched social media center help to forge strong connections between the representative and her consumers. We are giving her the tools, training and incentives to be a successful multichannel social seller,” Matt Harker, vice president of Avon North America Marketing said about the initiative.
A new competitor, Kintari just arrived on the US and Canadian direct sales skin care market. “Investment in our new subsidiary Kintari reflects Skinvisible’s ongoing commitment to maximize value to our shareholders,” Terry Holett, CEO of Skinvisible said last summer in advance of the launch. The Skinvisible brand markets Kintari day and night creams as a balance between science and nature.