We're kind of disruptive because of the Amway distribution model, and we don't have to go through the same channels to communicate with the consumers. Because we have these distributors who can tell more and deliver deeper brand stories and experiences through sharing and sampling the products, it allows us to do more that we'd be able to do off a traditional shelf, where basically we're limited to television ads, and print ads.
We can actually have people sampling, which gives us a lot of presence as consumers discover our products. What are some of the values that XS Energy Drink promotes? Giving people the opportunity to express themselves, to define their dreams, and pursue them.
We think that's kind of adventurous. The journey is just as and even more important than the destination. What our brand is really trying to promote is supporting the consumers and letting them participate in the distribution and sales to a place where they can actually start to earn enough income to live the life they want to live.
XS is about fueling people's dreams. What do you like the most, and what do you like the least about being the co-owner of XS Energy Drink? My most favorite part is that I get to live my life doing what I love to do. I love that I get to travel and meet new people. The thing I like the least is wrestling with all the technical regulations in every market, which can get frustrating.
Another thing I really don't like is spending weeks a year lobbying for our category in Washington D. They say that all energy drinks are the same, and therefore all energy drinks need to be regulated the same way. How are you dealing with this obstacle? We're absolutely different. Please don't categorize us with other people who are doing other things. Here in Laguna Beach, there are a lot of people who own action sports brands, and there's a number of pro athletes as well.
A lot of the kids are getting sponsorships, and so there's a lot of talk around our house about getting sponsored. Is XS Energy Drink going to launch any new flavors soon? Neither the price or terms of the agreement were disclosed by the Ada-based direct-selling giant in announcing the deal on Wednesday, Jan. The XS Energy brand has been sold as an Amway product since Available in a range of flavors, XS Energy is described by its makers as a sugar-free energy drink loaded with B-vitamins.
Vanderveen will join Amway as vice president and general manager for the XS brand to provide his expertise about connecting with the under crowd. He credits the experience with giving him the confidence to develop his own product. In the past decade, Amway has found success with its events and lifestyle branding in key growth markets like Japan and North America, where half of the business owners registered in the past year are younger than For XS co-founder David Vanderveen, who now serves as Vice President and General Manager for the XS brand, XS Energy is all about giving people an authentic, valuable experience that includes healthier, great-tasting energy products along with a compelling business opportunity.
Vanderveen had witnessed firsthand the burgeoning interest in energy drinks when he was charged with promoting a dot-com business at trade shows in the late s. He hit on the idea of giving away a highly popular energy drink to people who visited his booth—individuals dragging from long days and late nights. We were the first ones to be sugar-free. The emphasis on offering a sugar-free product touched on a growing demand in the marketplace.
According to Transparency Market Research, consumers are consciously cutting down on their consumption of sugar-sweetened drinks, and diabetes is on the rise worldwide. The research firm feels that, due to the obesity pandemic, low-calorie energy drink sales are likely to increase. According to Amway Chief Sales Officer John Parker, the forecasts for the energy category are all very strong and the company feels it will grow globally at a significant rate.
This growth also is driven by a growing consumer focus on health and fitness, especially among women consumers, reports Grand View Research. Those at the research firm also believe a growing health consciousness and hectic lifestyle among consumers will drive the energy product category over the next seven years.
While XS initially focused on the under age group and still targets that demographic, Vanderveen quickly discovered during early product sampling that their product had wider appeal; XS was converting 20 percent of the foot traffic to purchase in a grocery store when only 8 percent of consumers were even buying energy drinks.
And it was often moms who were buying the product by the case, says Vanderveen—busy individuals who need energy and want healthier products for their families. Vanderveen and his partners knew they needed an effective way to market their new product, which took them to Amway. In Amway became the exclusive distributor for the brand, offering just two SKUs. To attract a younger segment, Vanderveen knew he had to create an experience that was instantly appealing—both with the quality of the product and the excitement of the opportunity.
Amway now hopes to infuse the rest of its portfolio with the energy, authenticity and customer experience that has made XS so successful, while maintaining its traditional focus on entrepreneurship. Acquiring XS also enables Amway, as one of the first and largest direct selling companies in the world, to steer through the roiling waters of an ever-evolving marketplace. The old ways of conducting business, whether as a traditional or direct selling model, are rapidly going by the wayside.
Today IBOs are likely to share their stories, business opportunity and product information via a smartphone or tablet while on the go. Social media platforms play a huge role in this shift.
More and more companies realize that to be successful today—in any business—they must be savvy about social media. Social media platforms are ideal for the direct selling channel since it is fueled by people building strong relationships.
According to the U.
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