HERBALIFE - Red Points

The Challenge

Herbalife, a global nutrition and weight management company, was faced with a serious challenge: unauthorized selling on local marketplaces. This issue undermined the very core of Herbalife’s business philosophy, which emphasizes a one-to-one selling factor from authorized resellers to guide consumers on the proper usage of their products. Due to the continuous spike in unauthorized sellers, they required a more comprehensive strategy to tackle this issue at scale.

The Solution

Before partnering with Red Points, Herbalife initially considered a more traditional solution and reached out to several law firms. However, they found it challenging, expensive, and without any guarantees of success. Red Points provided a unique solution tailored to Herbalife’s needs, overseeing unauthorized selling across several marketplaces in the Asia-Pacific (APAC), Europe, the Middle East, and Africa (EMEA) regions. The collaboration went beyond a vendor-client relationship, creating a strategic partnership to protect Herbalife’s revenue, members, and customers.

The Result

Herbalife’s collaboration with Red Points led to remarkable results for the company. By achieving an all-time high success rate in the removal process, Red Points helped Herbalife eliminate thousands of infringements worth millions. This accomplishment not only eradicated a significant portion of unauthorized selling but also reinforced Herbalife’s commitment to its unique selling model and ensured proper guidance on product usage.

HERBALIFE

Herbalife is a global nutrition company founded in 1980 by Mark Hughes. Specializing in dietary supplements, weight management, sports nutrition, and personal care products, the company operates in over 90 countries. Utilizing a multi-level marketing model, Herbalife emphasizes community engagement, supporting thousands of independent distributors. It has focused on promoting healthy living, offering products developed by scientists and nutritionists. Herbalife’s mission is to improve nutritional habits worldwide with effective products that cater to the needs of individuals seeking a healthier lifestyle.

–

herbalife.com
Health Industry

Creating a comprehensive strategy and KPIs

Herbalife’s collaboration with Red Points enabled a more targeted and data-driven approach to tackling unauthorized online sales. The key performance indicators (KPIs) that were established to gauge success include the number of detected listings and takedowns per month, economic impact, stock taken down, and the number of sellers removed. This strategic approach extended to specific marketplaces in APAC and EMEA. The focus on these areas helped Herbalife maintain control over its unique multi-level marketing model and holistic approach to wellness.

Cross-departmental collaboration and future expansion

Red Points’ support has not only been limited to the legal department at Herbalife. Their detailed reports have been leveraged internally with various departments and the General Counsel of APAC, ensuring a company-wide understanding and approach to brand protection. Herbalife’s relationship with Red Points allows for the automation and scaling of efforts, with prioritization per country. Currently covering APAC and EMEA, Herbalife is looking to expand its collaboration with Red Points globally. This partnership has proven to be more than a temporary solution; it’s an ongoing strategy that supports business decisions across departments and looks forward to furthering Herbalife’s reach while preserving the authenticity of its products and brand.