Company Focus
September 2011
Playing ‘Dress Up’ Brings Success for Silpada
 Jeanette Zachs, Managing Director |
For direct selling jewellery company Silpada Designs, recession was no reason not to stick to its plan to expand into the UK. Judith Wojtowicz finds out more from Managing Director Jeanette Zachs.
Charmaine LimbSenior Representative with Four Team Members
This sterling silver bangle collection features some of Silpada’s most exclusive pieces. Charmaine Limb attended her first Silpada opportunity event only a few months ago, in February this year, and she immediately fell in love with the jewellery. Equally impressed with the business model, she ‘jumped straight in’ and has never looked back. As the mother of two small boys, and also helping to care for her seriously ill father, she values the flexibility that direct selling allows to build her business while meeting her family commitments. A qualified legal executive and former holistic therapist, Charmaine was first attracted to direct selling after the birth of her second son, and she joined a children’s educational book company, where she enjoyed a successful five years. Sadly, marriage breakdown saw her lose some momentum, but with the support of a new partner she came back re-energised and ready to start again. Browsing the UK Direct Selling Association website, she was excited by Silpada and took the first steps on her new adventure. “For the first time I feel I am running my own business with all the training, support and infrastructure I need to maximise my selling skills,” she said. Training starts with the Silpada Learning System and includes live tele-clinics and tele-classes, online tutorials and monthly face to face meetings around the country. “With this level of support my career is thriving and I love helping other women achieve what they want from their lives too,” she added. In just a few months Silpada has been life-changing for Charmaine, giving her the confidence to move home to a new area, where she now lives in a thatched cottage closer to partner Stuart who is in the RAF. She found her dream home when she held a Silpada party in the village. |
The launch of their 2011/2012 catalogue just a few weeks ago brought representatives from across the country, eager to see the latest offering from Silpada and to celebrate their achievements to date.
There was excitement also at the opportunity to meet Co-Founders Bonnie Kelly and Teresa Walsh, who themselves epitomise the Silpada mission – to empower women to look and feel their very best.
Silpada was born in the US in 1997 out of their wardrobe-styling service when they realised how much women loved jewellery. Seeing the potential, they took a risk and decided to focus on jewellery sales, first working with suppliers before branching out and designing their own range. Their initial investment was just $25 each plus a big helping of passion and self-belief… two qualities that every successful direct seller needs.
Today, they are seen as the ‘creative geniuses’ behind the brand, while Bonnie’s husband, Jerry Kelly, Chief Executive Officer and Co-Founder, heads a management team providing strategic direction.
“Silpada is the world’s largest sterling silver jewellery party plan business, offering one of the strongest compensation plans in the direct selling industry,” said Managing Director Jeanette Zachs. Last year it was acquired by Avon Cosmetics, the largest direct selling beauty company in the world.
Renowned for the quality of its merchandise, every piece of Silpada jewellery is handcrafted by skilled artisans from around the world. On average, each piece of Silpada jewellery has been touched by six to eight of these talented craftspeople. Average price is around £70 per piece, starting from £16 for a simple toe ring to £286 for a more elaborate bracelet. The concept of layering, wearing several pieces at the same time, adds even more fun to Silpada home parties, where customers are encouraged to play ‘dressing up’.
The Silpada representative is trained not to demonstrate her products in a formal way but to allow the hostess and her friends to try them on and experiment with different combinations in a relaxed setting. There is no formal presentation or sales pitch; rather, more an excuse to get together and enjoy the moment.
Leads for representatives, customers and potential party hostesses come naturally through this easy style of networking. “Not surprisingly, most of our representatives start their businesses through friends and family and it grows through people they haven’t yet met,” said Jeanette, who is pleased with the way Silpada has progressed in its first year, with strong pockets of activity from London all the way to Scotland.
“When we opened in the UK in April 2010 it wasn’t a case of putting a toe in the water to gauge response. It was part of a long-term expansion plan to provide a ground-floor opportunity in the UK where direct selling is established, and many of our representatives in the US and Canada already had connections,” she added. “Silpada has invested heavily because we believe in the future; we see the potential here and we are totally committed to this market.
“The brand was completely unknown a year ago and today representatives are joining because they have been a customer or hosted a party, so their learning curve is now weeks rather than months, which was a challenge at the beginning.
“Women like to treat themselves when times are tough and they take more care about where they spend. We see a trend away from the throw-away culture of pre-recession years towards an appreciation of quality that is long lasting. A piece of Silpada jewellery can be enjoyed for a lifetime.”
Representatives have their own personalised website where they place orders and manage their business. The order is delivered direct to the customer within three to five days in a secure carton. Feedback is positive and if the US example is anything to go by representative retention and customer satisfaction should remain high.
“It’s still early days and our priority is to build on our achievements of the first year and increase our presence through word of mouth and selective advertising and PR activities,” said Jeanette. “Having been in this industry for most of my professional life I am convinced that our product range and career path gives us a unique opportunity in this difficult economic environment. I know of no better industry where a woman can create a business to suit her own needs at such low cost…. Silpada offers all of that and more.
“One of the things I discovered when I first came to the UK is that while people may not like to talk about money they certainly think about it, and in these tough times people are understandably looking for ways to increase their income.
“Silpada has widespread appeal from the single businesswoman through to a mother of three kids under 10 or a retired lady… we have something for everyone.”
In addition to its commitment to women, Silpada’s philosophy embraces the idea of helping those less fortunate with a successful cause-related marketing programme. The company’s long-term charity partner is the Juvenile Diabetes Research Foundation, for which over $1 million has been raised in the US. The money comes from the sale of a jewellery polishing cloth and is donated to the charity in each market. The cloth costs £5 in the UK, with a donation of £1 to the Foundation, whose work is devoted to finding a cure for Type 1 diabetes that commonly occurs in childhood.
“This is one of many things that make me proud to be part of this company,” said Jeanette, who is based at head office in Watford. This is also the location for a small training facility and distribution centre, and a stylish reception area acts as a showroom.
“The company has a great product, clear leadership and vision, and a strong compensation and career plan. Our representatives can make money, have fun and fulfil their dreams… it doesn’t get any better than that.”
