Company Focus
November 2011
Changing the World… One Blue Bottle at a Time
NYRO products are made by hand in a state-of-the-art facility in the heart of the British countryside.
Launched less than three years ago, Neal’s Yard Remedies Organic UK was an opportunity to create a new direct selling model from scratch.
Setting up a new direct selling company can be a lengthy and complex process, but as an established brand, Neal’s Yard Remedies had a head start. With a flagship store in London’s Covent Garden, and long before ‘green’ was fashionable, Neal’s Yard Remedies was built on eco-principles that today underpin the business at every level.
Products are handmade in the UK in an impressive facility designed and built using the very latest state-of-the art green technology. Only the highest quality natural, organic ingredients are used, some of them grown on the company’s own farms. Products are mostly presented in bottles and jars made from blue glass, which protects against sunlight and extends shelf life without having to rely on artificial preservatives.
Recognised as pioneers in organic beauty, the company has won many awards and was the first in the UK to be certified for its organic credentials by the Soil Association, acknowledged as the primary independent arbiter in this arena. Neal’s Yard Remedies was the first UK retailer to be certified as carbon neutral… staff are encouraged to reduce, recycle and re-use and to travel by train where possible.
With such an impressive pedigree, and tapping into a growing consumer trend towards natural health and beauty, the company’s new owner realised that direct selling could take Neal’s Yard Remedies Organic (NYRO) to a much bigger audience. Having acquired the store-based brand in 2005 and no stranger to the direct selling industry after a successful career with Dorling Kindersley, Peter Kindersley’s vision was to turn the business into a worldwide eco-brand.
Planning began in earnest in late 2008 and the first Consultants were up and running by April the following year. Less than three years later, with growing networks in the UK and the US, direct selling is an integral part of a sales mix that includes stores, franchises, internet and retail trade partners such as UK High Street store John Lewis plc. An international expansion programme has taken the brand as far as Japan, Korea and most recently Dubai in the United Arab Emirates.
 Denise Bonner, National Sales and Training Executive |
Denise Bonner, National Sales and Training Executive, was brought in to help create a model that would maximise industry best practice while avoiding some of the pitfalls of more established organisations. She brought with her a wealth of experience, having worked with UK-based Ann Summers, US-based Creative Memories and an Australian aromatherapy company. Combined with a spell working as a freelance with the UK Direct Selling Association, this gave her a rounded and in-depth view of the industry that helped formulate the NYRO model.
She told Direct Selling News Europe: “It was hugely exciting being able to build a new model just as we wanted it, knowing we already had the product and infrastructure in place. Our franchisees were a critical part of the story, giving us geographic presence and enabling us to fast-track the training programme to ensure a smooth launch.”
Launching the new business in a recession focused the team even more on getting everything right the first time. Consultants were to be properly rewarded for their efforts and faced with no hidden extras after joining. There is no charge for the Consultants’ personalised website and they earn exactly the same discount regardless of whether a customer orders at a NYRO party or chooses to do so online. Customers receive their orders within three to five working days and have a choice of three delivery addresses: direct to their own home, via the Consultant or via the party host.
One major difference that sets them apart from other direct selling organisations (DSOs) relates to de-activation of Consultants. Denise explained: “We believe our position is unique in that some companies let their people go if no order is placed within three months. We allow our people to dip in and out if they wish, to take account of school holidays and other personal circumstances, so we don’t de-activate unless they fail to place an order for 11 months.”
When it comes to recognition of the field group, Denise also does things differently, preferring to foster a ‘spirit of community’ in which everyone feels part of the company’s mission to promote good green practices and ‘change the world one blue bottle at a time’.
“Of course we recognise status as Consultants move through the various achievement levels but we are not keen on the traditional rivalry that I saw in some of my previous roles,” she said. Consultants can build their team and develop their NYRO business through five levels culminating in Senior Ambassador. The very first swathe of Consultants are referred to as ‘frontline founding leaders’ and understandably enjoy a certain respect among their peers. All have embraced the eco-principles first established by Neal’s Yard founder Romy Fraser, as well as the earnings potential of this remarkable brand.
 Members of the NYRO Production Team |
Blue glass bottles have become symbolic of the company’s commitment to the environment. Consultants and customers alike admire this stance and share the same passion, which was strongly reflected in its first year of trading. Results significantly exceeded forecast, and sales and recruitment doubled in year two. Continued economic problems appear not to have impacted growth as much as many other DSOs, and to the end of August results were tracking to reach an increase of 120 per cent over 2010.
“My history with direct selling, particularly during the recession of the mid-80s, shows that conditions like these are good for recruitment and building a business,” said Denise. “Nor are customers in short supply, partly because of the trend towards a greener lifestyle but also because consumers are looking for better value, perhaps trading down and finding they can buy better by spending less. At the same time our Consultants are driven by our common aim of getting a blue bottle into every home.”
Neal’s Yard Remedies Organic attracts a diverse range of people, from successful business owners to the more traditional young mum with children, attracted by the flexibility of running a business from home. About 30 per cent of the Consultant base comprises qualified complementary therapists or personal trainers, who have integrated NYRO into their own business.
“Our biggest challenge in the early days was keeping up with growth and reassuring prospective Consultants that there was no requirement for them to be qualified,” said Denise. Since then the biggest growth has been in the south; the first Consultant to reach Ambassador status (one below the top level) comes from this part of the country, in Essex. “If we are to achieve our aims we need even more people and our priorities are to extend the network in the north and develop leaders who can help us drive our mission across the country.”
In line with this mission, the company recently took part in Discover Organic Month, an initiative managed by the Soil Association, in which customers were encouraged to use an ‘amnesty box’ to get rid of their ‘not so natural’ unwanted or part-used beauty products.
Over a period of five days, supported by a vocal social networking campaign, 900 NYRO parties were held around the country resulting in a veritable mountain of products being transported to head office for recycling. In return, customers were able to choose from a selection of ‘blue bottle’ face, body and hair products at 20 per cent less than usual price.
“It was a huge success on many levels and something we may well repeat,” said Denise.
30 Years of Organic Excellence
For three decades NYR scientists have been harnessing the healing, rejuvenating properties of plants, flowers and herbs to create award-winning formulations – including its top-selling Frankincense collection.
Renowned for its natural, ethical and holistic approach to health and beauty, the company supports sustainable organic farming which has helped it become a positive force for change. Ground-breaking achievements include:
- The first UK health and beauty company to be certified organic by the Soil Association
- The first UK high street retailer to be certified carbon neutral
- A pioneer of Fairtrade Foundation-endorsed ingredients in beauty and skincare
