The NeoLife business in South Africa tells a story of success in a commercial sector where so many others have failed. Following a rebrand and the release of a number of exciting new products, this is a company that is set to thrive throughout 2016 and beyond…
Direct selling is a proven, successful tool for building a network of customers and marketing products to a relevant commercial audience quickly and effectively. But somewhere along the way, direct sales has gained something of a bad reputation in some corners, largely due to the negative publicity around Ponzi and pyramid schemes that have been shut down in the past. Some direct sales companies, years ago, didn’t have the integrity they needed, hard sales tactics in which recruits were pressured into buying products or front-end loading were used but today, with the reputation of the industry on the mend, this model is proving hugely positive for some companies and their distributors.
Selling directly to consumers generates referrals and creates demand and direct-selling companies are now focusing on general consumer transparency, leveraging new technologies to reach beyond distributors to general consumers and developing corporate sophistication.
The perfect example in South Africa is NeoLife. The company recently rebranded (previously known as GNLD or Golden Products) and is pushing to build its market share in the healthcare and consumer products industry.
“Unfortunately, because we are a direct selling company, we quickly get thrown into the basket with pyramid or Ponzi schemes,” says NeoLife Executive Vice President for Africa, Marco Taylor. “We are part of the Direct Selling Association which has 36 member companies in South Africa and in 2014 there was a growth of 15% in people joining our industry and sales grew by 5% as an industry so we see more and more people looking at this as an opportunity to trade and in Africa people still like to trade.
“People join our company as they can see the benefit of the product and the value for money the products offer. People also join NeoLife to make extra money.”
Now officially known, globally, as NeoLife, the South African division has undertaken a complete overhaul of its image to modernise and align the business units from around the world.
“We have had an extreme makeover,” explains Taylor. “We renewed the packaging and the look to make our brand fresh and new. We believe people need to look after their health; our mission is to make the world a healthier and happier place. People are conscious of the environment and we have made sure that remains part of our philosophy.
“We’ve come a long way and people are seeing this rebranding as a rebirth of who we are or where we’re going. Even though times are tough, we are very excited about the future and we’re in a building process, getting the brand out there and reminding people who we are, and just by changing our packaging and the way we look, people are picking up the product and seeing that it’s fresh and new and then realising that it’s GNLD or Golden Products and that excites them as it’s a quality brand that they know and trust,” he says.
NATURAL GROWTH
Neolife started in the USA and was founded by entrepreneur, Jerry Brassfield. After selling nutritional products from his home, Brassfield quickly grew the business and today the company is a multi-million dollar organisation.
“The company arrived in South Africa, via Australia, in 1971. Jerry started in a small town in California and grew quickly. Soon, it was all over California, then all over the USA, then Australia, Europe and eventually South Africa.
“Back then, the company was called Golden Products and mainly sold cleaning products. We still sell these products today and they are environmentally friendly, just as they were back then – we were green before it was cool to be green.
“As Jerry acquired more businesses, we added additional nutritional products based on wholefood concepts and nature,” explains Taylor.
As the company grew in Africa, and around the world, more products were added, there was a need to consolidate the brand and centralise marketing.
“We had different names throughout the world; Africa and Europe were trading as Golden Products, USA and Asia Pacific were trading as NeoLife,” explains Taylor.
“The company grew in Africa, using South Africa as a hub, we started bringing in products in bulk from the US, we package, we re-export, and we realised that the brand is not looking that great. We were looking slightly 80s/90s and we began to ask, how can we be more current? We looked at what’s easy to remember, what’s something that will stick with people, and we felt the brand NeoLife was suitable.
“We call ourselves NeoLife but we make sure people know we are GNLD as that is a well-established brand in Africa. People still know Golden Products from our two popular products Super 10 and LDC which are light and heavy duty cleaning products,” he says.
HEALTHY PRODUCT LINES
The NeoLife products span different lines; there’s Nutritionals, which include vitamins, minerals and diet supplements; there’s Home Care, which includes carpet cleaner, car wash products and laundry goods; finally, there’s Personal Care, which consists of soaps, facial products and shampoos.
Taylor is excited about nutritional products which are whole food based, backed by NeoLife’s Scientific Advisory Board.
“We have a few products like grain oils, where we extract the material that is good for the cells to assist in a healthy diet, which are extremely popular. Our product called Tre-En-En is one of our best selling product, we have our Salmon Oil Plus which is a top seller, we have a very convenient packed product called Pro Vitality+, 4 products in one small sachet, where we combine grain oils in the form of Tre-En-En, a multivitamin product, a product called Carotenoid which is an antioxidant that helps to repair cells and boosts your immune system as well as our Salmon Oil Plus capsule.
“Last year we introduced a healthy snack bar. People drive around a buying a doughnut or a muffin and they don’t get nutritional value, so we launched a fruit and nut bar and a chocolate bar filled with nutrition, protein and even omega 3. Both of these flavors are growing. Initially it was released as an add-on to our weight loss portfolio, encouraging healthier snacking, but we found that a lot of parents liked the product for their children and sales quickly increased,” he says.
The power of NeoLife’s nutritional products has even attracted the attention of some of the healthiest people around – the country’s elite athletes.
“We see more and more sportspeople and athletes approaching us for our nutrition. NeoLife sponsors a Superbike team who use our products and they have won the SA championship back-to-back using NeoLife products. We also have some of the top rugby players asking to use our products as supplements,” Taylor boasts.
2016 AND BEYOND
The difficulties of operating in stagnant economic times have been somewhat sidestepped by NeoLife as the company’s target audience is addressed through the direct sales model which is based principally on personal contact with the customer. Nevertheless, Taylor does concede that demand may be slower in challenging times when people are less-flush.
“We feel demand may be a little flat this year because people are being very careful with their money due to the current economical environment in South Africa. However, we see opportunities with our cleaning products as we can show people how you to save money. We expect that we might not have significant growth this year but when you build a brand, you need to be positive and we see the current situation as an opportunity.
“Bad health is an expensive deal. People are stressed, they are not eating properly, there’s an increase in chronic disease and when you come with natural health products people are open to listen, especially when you offer value for money.
There’s no limit to the market for NeoLife; everyone is a potential customer and this of course drives further business. As health and fitness become more fashionable and more on-trend, the company’s products are set to thrive.
“In wholesale or retail, you don’t always see the effect that your business or products will have on people. In this business I’ve noticed everyone from engineers to accountants, teachers to doctor’s start using the product and they start referring it and then they make money and realise how easy it is. It’s an interesting business to look at, especially the sales side of our business, but for the rest – operations, finance, distribution, IT – it’s normal business,” Taylor explains.
He concluded by saying that he is “very excited about the company and the group” and why not? This is a business with nearly 60 years of global sales experience, internationally respected products that are backed by scientific research, a brand that is valued and recognised by customers, and a growing market that is hungry for further advancement. The next step will be further development on the continent and pursuing further market share in South Africa.