Tupperware will now leverage its network of direct sellers to launch exclusive brand stores, as well as make products available on e-commerce channels in India. The company began listing its products on e-commerce platforms such as Amazon and Flipkart through authorized sellers in August. This multi-channel approach comes as consumption of Tupperware products has shown a slow growth trajectory. Efforts also are being made to keep up with an evolving market that demands greater access to products. The company plans to open 30 outlets by the end of the year, with 13 stores already in various stages of completion. An additional 100 outlets are in the works to be finished by year-end. The franchise-run stores will launched in key cities, such as Delhi, Mumbai, Bengaluru, Hyderabad and Pune. It had been previously reported that the Delhi High Court had issued a judgement preventing e-commerce platforms from selling products of direct selling companies without their authorization.
DD3 Acquisition Corp. (DDMX—NASDAQ), a publicly traded special purpose acquisition company and Betterware de Mexico, a Mexico-based direct seller of home organizations products, have entered into a definitive agreement to merge. The combined company will operate as “Betterware” and is expected to remain publicly listed on NASDAQ. The transaction implies an initial enterprise value of approximately $367 million representing a multiple of 8.6x
Betterware’s estimated 2019 EBITDA. Current Betterware shareholders will roll over most of their equity stakes and will remain majority owners of the combined company, with an anticipated approximately 80 percent stake at closing, while the remaining ownership will be held by public investors and DD3. The transaction is expected to be completed during the fourth quarter of 2019, subject to approval from DD3’s shareholders and other customary closing conditions. Betterware was founded in 1995 and has a salesforce of more than 400,000 distributors and associates.
Facebook influences more buying decisions than any other social media platform, according to a new survey from business site The Manifest. In fact, Consumers are more likely to buy from a brand on Facebook (52 percent), than on Instagram, Pinterest, Twitter, YouTube, Snapchat, LinkedIn and Reddit combined (48 percent). This may be due to Facebook’s standing as the largest social network, according to some digital marketing experts, especially since the platform has been around for many years now. Still, social media offers connection, whether personal or business, and that creates trust with a brand and adds value. But it doesn’t stop there. Interaction is key, and customer service is invaluable when creating customer loyalty.
As a company, you can take the Likes at face value, but respond to those that leave reviews (31 percent), mention brands on their own profile (22 percent), direct message brands (20 percent) and tweet at brands (18 percent), because they could result in loyal customers.
For the second quarter in a row, web sales at Walmart Inc. grew 37.0 percent, according to the company’s report. The increase was impacted by strong growth in groceries sold online, the company stated. For the second quarter ended July 26, Walmart reported total revenue of $130.38 billion, an increase of 1.8% from $128.03 billion a year ago. Profit for the quarter was $3.61 billion, compared with a net loss of $861.0 million the previous year. The company called online grocery “a meaningful contributor to ecommerce growth.” The quarter ended with more than 2,700 grocery pickup locations and more than 1,100 delivery locations in the United States. Walmart reached another milestone with making its same-day delivery service available to 75 percent of the U.S. population. The company had planned to extend same-day delivery by the end of the year but announced it had met the goal ahead of schedule.
FedEx announced it would not renew Amazon’s U.S. domestic flying contract, continuing its multi-year process of untethering from Amazon.com Inc. This does not affect Amazon’s use of FedEx’s ground parcel delivery, nor does it impact Amazon’s U.S. last-mile and international business with FedEx. According to FedEx, Amazon accounted for just 1.3 percent of FedEx’s total revenue for the 2018 calendar year, and in a statement, FedEx said it made the move to focus more of its resources on the broader e-commerce sector. FedEx has been moving away from Amazon for years, as offering significant price discounts compressed the carrier’s margins. While its focus shifts to other opportunities and existing customers, Amazon continues to pursue linking its own logistics chain, including warehouses, planes, delivery trucks, cargo ships and now planes all over the world. Already, Amazon has launched night flights to and from its hub in Wilmington.
U.S. Senators Richard Blumenthal (D-CT) and Bob Menendez (D-NJ) recently wrote a letter to Amazon CEO Jeff Bezos concerning the process in which Amazon chooses products for its “Amazon’s Choice” recommendation list. The senators focused on Amazon’s “responsibility of providing its customers with accurate information” and questioned whether the badge was motivating consumers to purchase inferior products. The letter included questions about
Amazon’s use of an algorithm to make “Amazon Choice” decisions and asked whether employees personally reviewed products. Amazon’s response, according to Business Insider, was that it uses investigators and automated technology to detect and prevent fake reviews, which includes suspending, banning, and/or taking “legal action on those who violate our policies.” Already, Amazon, Google and Facebook have faced prying eyes, as they’ve gained greater influence over the public. The Department of Justice has announced its own investigation into such companies that corner the market in search, social media and ecommerce.
Dallas-based Stream, a leading direct selling company and marketer of energy and wireless services, has completed the sale of its retail energy business to NRG Retail, a subsidiary of NRG Energy, Inc., for $300 million plus working capital in an all-cash transaction. Stream’s remaining business will emerge as new brand Kynect to market energy and wireless services through its independent sales organization, and it will be the exclusive marketer to the retail energy business acquired by NRG. Stream is one of the nation’s fastest-growing retailers, serving more than 600,000 customers in nine states and the District of Columbia. The transaction is expected to increase NRG’s market share in Texas, Pennsylvania and a number of other markets in the Eastern U.S. where Stream’s retail energy business provides electricity and natural gas. With a $65 million annual EBITDA contribution, the transaction is expected to deliver greater value to NRG’s customers and shareholders.
Young Living has acquired hemp farming company Nature’s Ultra, which utilizes more than 1,500 acres in Colorado to grow organic hemp and produces a line of CBD-infused products. The company will now sell a range of products infused with Young Living essential oils, available only on the Nature’s Ultra website, and available to all Young Living members, customers and general consumers.
The remaining shareholders of European beauty brand Oriflame have accepted a bid by the founding af Jochnick family to buy out the group for full ownership of the company. After the initial offer of 9 billion crown (US$969 million) was made in May, other owners representing 60.5 percent of shares had accepted the bid from the founding family, which already owns 31 percent of Oriflame. Though the company is valued at 13 billion crowns, board members had supported the sale, considering an uncertain outlook for the company, which has been struggling in several key markets with share prices continuing to drop.
Wildtree, a 23-year-old meal solution company, is closing its doors. Known for its give-back mission to provide hunger relief as well as respond to natural disasters, the company’s meals accommodated a variety of family dietary restrictions and preferences, including gluten-free, vegan and kosher diets. Southwestern acquired majority ownership in 2004, and Wildtree joined bakery company Tasty Selections as one of two food companies in Southwestern’s portfolio. Wildtree parties ceased at the end of July, and orders will continue being accepted through Sept. 30 while supplies last.