Direct Selling Magazine PM-International Coverstory I English
Direct Selling Magazine PM-International Coverstory I English
Direct Selling Magazine PM-International Coverstory I English
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COVERSTORY<br />
ROLF SORG<br />
Originally a trained car mechanic,<br />
Rolf Sorg discovered direct sales<br />
when looking for a side income<br />
opportunity during his studies. In<br />
1993, when the company he worked<br />
with went out of business,<br />
he founded his own company<br />
<strong>PM</strong>-<strong>International</strong>. He is driven<br />
by the idea of "giving others<br />
the chances that I was given<br />
myself: self-employment and an<br />
instant extra income with no risk,<br />
freedom to choose your worktime<br />
and the ability to have a lot of fun<br />
while doing so."<br />
DIRECT SELLING MAGAZINE I EDITION 05 // 2021 I 2
<strong>PM</strong>-INTERNATIONAL POSITIONED FOR FURTHER EXPANSION<br />
<strong>PM</strong>-INTERNATIONAL TARGETS SALES OF MORE THAN $2 BILLION AFTER RECORD YEAR<br />
When Rolf Sorg founded his own company, <strong>PM</strong>-<strong>International</strong>, in Germany in 1993, no one<br />
could have guessed that it would turn out to be one of the greatest success stories within<br />
the direct selling industry. Today, <strong>PM</strong>-<strong>International</strong> AG is one of the fastest-growing<br />
and most stable direct selling companies in the world and continues to expand massively.<br />
After achieving sales of $1.11 billion for the first time in 2019, CEO and Founder Rolf<br />
Sorg is now targeting sales of more than $2 billion for 2021. This is a more than realistic<br />
goal, as the company headquartered in Luxembourg is probably better positioned internationally<br />
than ever before.<br />
Since the company was founded, <strong>PM</strong>-<strong>International</strong>'s<br />
sales have been growing continuously,<br />
steadily and unstoppably, reflecting the company<br />
philosophy of its Founder, whose greatest<br />
strengths and virtues are clearly patience,<br />
perseverance, discipline and honesty. When<br />
the first FitLine nutritional supplement Q10<br />
launched in 1995, followed by the million-seller<br />
Activize in 1996, <strong>PM</strong>-<strong>International</strong>'s success<br />
story began to gather momentum.<br />
Only ten years after the company was founded,<br />
expansion into Asia was initiated in 2003,<br />
and annual sales of 100 million euros were<br />
achieved for the first time in 2004. In the 2005<br />
financial year, the company changed from a limited<br />
liability company (GmbH) to an unlisted<br />
company (AG) in order to further consolidate<br />
the company's foundation.<br />
In 2008, when <strong>PM</strong>-<strong>International</strong> was already<br />
represented in 30 markets worldwide, the<br />
company started focusing on creating new infrastructures<br />
in order to support further international<br />
expansion. The logistics and administration<br />
center in Switzerland started in 2011,<br />
while the new administration building in Speyer<br />
was already built in 2012. Today, all logistics<br />
for the European markets are coordinated<br />
from there. With the official inauguration of the<br />
new Headquarters in Luxembourg in 2015, another<br />
cornerstone was laid in the company's<br />
history to massively drive the opening of new<br />
countries. The company is now positioned in<br />
the most important billion-dollar markets in Europe,<br />
Asia, America and Australia, where it is<br />
represented with own subsidiaries and offices.<br />
This concept and strategy have an impact on<br />
distribution partners and customers and are<br />
building trust. Since 2015, the company's sales<br />
have risen from $350 million to $1.71 billion<br />
in 2020.<br />
This record turnover catapulted <strong>PM</strong>-<strong>International</strong><br />
to 10th place in the current "DSN Global<br />
100" ranking of the direct selling companies<br />
with the highest turnover worldwide and<br />
led to an additional Bravo <strong>International</strong> Growth<br />
Award.<br />
With around 700 million FitLine products sold<br />
to date, a legally compliant, proven compensation<br />
plan and a customer-based business<br />
model, <strong>PM</strong>-<strong>International</strong> belongs undoubtedly<br />
to the absolute top direct selling companies<br />
worldwide. The economic stability of a company<br />
is also an important factor for distribution<br />
partners who want to build a business for<br />
generations. Here, too, <strong>PM</strong>-<strong>International</strong> can<br />
convince with a triple "AAA" (Triple A+) rating<br />
and an equity ratio of over 60 percent, thus<br />
providing the base for long-term planning.<br />
DIRECT SELLING MAGAZINE I www.direct-selling-magazine.de I 3
COVERSTORY<br />
A family-owned company<br />
"I already founded <strong>PM</strong>-<strong>International</strong><br />
as a business also for<br />
future generations," says Rolf<br />
Sorg. For him, family businesses<br />
have clear advantages,<br />
starting with quick decisionmaking,<br />
because "it's about<br />
lived values and not just about<br />
the next quarter," says the <strong>PM</strong>-<br />
<strong>International</strong> CEO. "For us, the<br />
'family business' model has<br />
proven itself even in turbulent<br />
times, as it allows us to always<br />
react flexibly to changes."<br />
DIRECT SELLING MAGAZINE I EDITION 05 // 2021 I 4
Cumulative sales of $6.391 billion<br />
in the last eleven years<br />
It took around eleven years since its foundation for <strong>PM</strong>-<strong>International</strong><br />
to reach the milestone of €100 million in sales in 2004. After<br />
another ten years, sales already amounted to $313 million and in<br />
2019, for the first time in company history, the $1 billion sales mark<br />
was reached with $1.11 billion.<br />
From 2010 to 2020 alone, <strong>PM</strong>-<strong>International</strong>'s<br />
cumulative sales was<br />
$6.391 billion, with a sales increase<br />
of approximately $1.49 billion, or<br />
688 per cent, compared to 2010. The<br />
strategic global expansion started<br />
in 2015 resulted in one sales record<br />
after another. In the 2021 business<br />
year, sales of new direct-selling giant<br />
with Headquarters in Luxembourg<br />
are expected to amount to<br />
slightly more than $2 billion.
COVERSTORY<br />
Germany is the<br />
hub for the<br />
entire European<br />
market.<br />
The history of <strong>PM</strong>-<strong>International</strong><br />
began in 1993, when Rolf<br />
Sorg, a native of the Palatinate,<br />
founded the company<br />
in his grandfather's cellar in<br />
Limburgerhof. At that time<br />
still consisting of a handful of<br />
founding members, <strong>PM</strong>-<strong>International</strong><br />
is today, 28 years<br />
later, one of the largest direct<br />
selling companies worldwide.<br />
Already when <strong>PM</strong>-<strong>International</strong><br />
started, CEO and Founder<br />
Rolf Sorg had a great vision:<br />
worldwide market leadership<br />
in the development and distribution<br />
of high-quality products<br />
for health, fitness and beauty.<br />
A large part of the company's<br />
long-term and exponential development<br />
is also due to <strong>PM</strong>-<br />
<strong>International</strong>'s oldest and largest<br />
market, Germany. Only in<br />
the last year, <strong>PM</strong> could attract<br />
a number of customers in the<br />
six digit range in this market,<br />
with an average sales growth<br />
pf 34,9 per cent compared to<br />
the previous year.<br />
This year too, the oldest market<br />
is breaking all records on<br />
the way to the second billion.<br />
In the first quarter, Germany<br />
already creates a continuous<br />
sales growth of over 30 per<br />
cent, in April even 76 per cent<br />
compared to the previous year<br />
and thus a new all-time high.<br />
"We are confident to be able to<br />
keep this momentum. We owe<br />
this success to our leaders,<br />
our well over 10,000 independent<br />
distribution partners, and<br />
our customers and employees<br />
here in Germany.<br />
Without their outstanding performance,<br />
commitment and<br />
loyalty this would never have<br />
been possible," says Chief Sales<br />
Officer Patrick Bacher. "I<br />
see our constant and innovative<br />
product development and<br />
optimization as an important<br />
building block of our sustainable<br />
expansion, not only in Germany,<br />
but also in all other markets,"<br />
he adds.<br />
Patrick Bacher<br />
Patrick Bacher is a founding<br />
member of the company.<br />
In 2004, he took over sales<br />
management, and is now<br />
responsible for Germany and<br />
Switzerland. Since 2017,<br />
Bacher has been <strong>PM</strong>'s Chief<br />
Sales Officer, and since<br />
last year he has also been<br />
responsible for logistics and<br />
purchasing. Bacher sees big<br />
potential for the German market<br />
in the future: "The current<br />
market saturation in Germany<br />
is estimated at around 10<br />
percent. This means that until<br />
the market is saturated, we<br />
can still increase our sales<br />
tenfold!"<br />
DIRECT SELLING MAGAZINE I EDITION 05 // 2021 I 6
Over 250 employees<br />
work at the Headquarters<br />
Europe<br />
Just in time for the company's 10th anniversary,<br />
<strong>PM</strong>-<strong>International</strong> moved into<br />
the newly built Headquarters Europe<br />
and Logistics Center in Speyer, Germany<br />
in 2003. Today, four warehouses<br />
and two administrative buildings are located<br />
near the Rhine river.<br />
A third administration building is urgently<br />
needed and already in the planning<br />
stage. It will provide space for around<br />
60 additional employees. Construction<br />
is scheduled to start this<br />
year. Started in 2020 with<br />
192 employees, the Speyer<br />
site has a total of 254 employees<br />
as of April 2021.<br />
Due to the strong expansion,<br />
there is a need for additional<br />
in all departments.<br />
In addition to the European<br />
Logistics center, <strong>PM</strong>-<strong>International</strong><br />
also has 27 <strong>Direct</strong><br />
Sales Centers throughout<br />
Germany, which support local<br />
sales in the respective<br />
region.<br />
There, customers, distribution<br />
partners and everyone who is interested<br />
can purchase FitLine products,<br />
taste them and receive advice. To ensure<br />
the highest quality, all FitLine products<br />
are "Made in Germany", manufactured<br />
according to GMP, a standard<br />
of the pharmaceutical industry, and<br />
regularly and independently tested by<br />
TÜV SÜD ELAB. The results can be<br />
accessed through a QR code on the<br />
product.<br />
European Logistics Center<br />
Subsidiaries inside and outside Europe are supplied by the<br />
Logistics Center. In March 2021 alone, 58,051 packages were<br />
shipped to customers and distribution partners within Germany,<br />
with an additional 4,500 pallets going to national and<br />
international branches. To cope with the growing numbers,<br />
a fourth warehouse was opened last October. This covers<br />
146 meters in length, 25 meters in width and nine meters<br />
in height. The European Logistics Center now has a total of<br />
7,400 pallet storage spaces on just under 8,000 m².<br />
DIRECT SELLING MAGAZINE I www.direct-selling-magazine.de I 7
COVERSTORY<br />
Positioned in the world's<br />
most important billion-dollar<br />
markets<br />
<strong>PM</strong>-<strong>International</strong> is operating at 35 locations in<br />
more than 40 countries. Founder Rolf Sorg started<br />
expansion early on; first in Europe, then in<br />
the Asia-Pacific region and in America. His family<br />
business relies on a strong local presence: "For<br />
us, our premium approach means offering a personal<br />
service to our customers and partners. After<br />
all, direct sales thrives on interaction," emphasizes<br />
Rolf Sorg.<br />
<strong>International</strong> Headquarters - Luxemburg<br />
Opened in 2015, the Headquarters in Schengen<br />
is just a stone's throw away from the place where<br />
the European Union was founded. Considering<br />
the company's growth and now almost 100 employees,<br />
investments are also being made here:<br />
the construction of the second administration<br />
building has just started.<br />
Headquarters Americas – USA<br />
Opened in 2019, the Headquarters<br />
including a GMP-certified fulfillment<br />
center has just been expanded with a<br />
second warehouse and administration<br />
building. Sammy El Ghoul, Chief Sales<br />
Officer Americas: "In 2021, we will open<br />
another office for the West region, as<br />
sales are steadily increasing. We also<br />
already have fully operative subsidiaries<br />
in Canada, Chile and Mexico."<br />
DIRECT SELLING MAGAZINE I EDITION 05 // 2021 I 8
Strategic market<br />
openings<br />
Headquarters Europe – Germany<br />
"Expansion needs space. We are planning a third<br />
administration building at the moment, right after<br />
opening our fourth warehouse in 2020," explains<br />
Chief Sales Officer Patrick Bacher. With more<br />
than 250 employees, the European Headquarters<br />
is <strong>PM</strong>'s biggest location.<br />
<strong>PM</strong>-<strong>International</strong> started operating on<br />
the Canadian market in 2020, the subsidiary<br />
is located in Toronto. "We have<br />
a growing sales force in this market and<br />
registered +171% growth in sales in<br />
2020 compared to the previous year,"<br />
says Rolf Sorg.<br />
Last fall, <strong>PM</strong>-<strong>International</strong> entered the<br />
Belgian market with a new subsidiary<br />
that is responsible for the administration<br />
and logistics in Belgium and the Netherlands<br />
In Indonesia, the company just celebrated<br />
the next milestones of the market<br />
opening with the Founders Meeting and<br />
Pre-Launch online events in April this<br />
year.<br />
In 2021, <strong>PM</strong>-<strong>International</strong> plans market<br />
openings in Great Britain, Hungary,<br />
Portugal, Vietnam and China, as well as<br />
further expansion in Central and South<br />
America. "Even if the current situation<br />
shows that long-term plans cannot always<br />
be realized on time – we will not<br />
be held back. We are flexible, and that's<br />
the way we act.”<br />
Headquarters Asia-Pacific - Singapore<br />
To support further growth in the Asia-Pacific region,<br />
<strong>PM</strong>-<strong>International</strong> invested into new and bigger facilities<br />
in Singapore in 2020. "We are developing very<br />
quickly here and have big plans. In addition, we<br />
are planning to set up a logistics hub in North-East<br />
Asia for supporting the whole region," says Marcus<br />
Sandström, Chief Sales Officer for Asia-Pacific.<br />
DIRECT SELLING MAGAZINE I www.direct-selling-magazine.de I 9
COVERSTORY<br />
Almost 700<br />
million FitLine<br />
products sold to<br />
date<br />
In product development, <strong>PM</strong><br />
uses the latest findings. The<br />
company has been conducting<br />
basic and applied<br />
research for more than 25<br />
years, both with its own team<br />
of scientists from the fields<br />
of nutritional sciences, cell<br />
research and food technology,<br />
as well as in collaboration<br />
with the Luxembourg Institute<br />
of Science and Technology<br />
and the Upper Austria Univer-<br />
This has resulted in several<br />
scientific studies, and <strong>PM</strong>-<strong>International</strong><br />
also holds around 70<br />
patents worldwide. Dr. Tobias<br />
Kühne: "Our research projects<br />
embody exactly what we want to<br />
achieve as a company. Thanks<br />
to a €1.1 million research grant<br />
from the Luxembourg government,<br />
we have been able to expand<br />
our activity considerably."<br />
"Our main mission is to develop<br />
new premium products for<br />
health, fitness and beauty, from<br />
inside and out," explains Dr. Tobias<br />
Kühne, Chief Scientific<br />
Officer of <strong>PM</strong>-<strong>International</strong>.<br />
"In addition, we<br />
are always working to<br />
further improve the bioavailability<br />
of the FitLine<br />
products."<br />
The Nutrient Transport<br />
Concept (NTC®) represents<br />
the core competency<br />
of <strong>PM</strong>-<strong>International</strong>:<br />
it delivers the<br />
nutrients exactly when<br />
they are needed and<br />
where they are needed – to the<br />
cellular level, from inside and<br />
out.<br />
Highest quality and<br />
maximum safety<br />
"Quality is a very decisive<br />
factor for us," explains Dr.<br />
Kühne. "Our products are<br />
Made in Germany and produced<br />
according to the strict<br />
GMP guidelines, a standard<br />
from the pharmaceutical<br />
industry." To guarantee a continuous<br />
high product quality,<br />
the products are regularly and<br />
independently tested by TÜV<br />
SÜD ELAB. End customers<br />
can review information about<br />
the analysis directly on the<br />
TÜV SÜD ELAB website, by<br />
scanning the QR code on the<br />
product packaging. No other<br />
competitor offers this level of<br />
transparency.<br />
DIRECT SELLING MAGAZINE I EDITION 05 // 2021 I 10
More than 3,000<br />
sponsored children<br />
with World Vision<br />
<strong>PM</strong> We Care, the charity foundation of<br />
<strong>PM</strong>-<strong>International</strong> and largest corporate<br />
sponsor of the relief, development and<br />
advocacy organization World Vision,<br />
supports children, their families and entire<br />
communities in more than 60 longterm<br />
development projects in more than<br />
25 countries worldwide. "The principle<br />
is simple," explains Charity Ambassador<br />
Vicki Sorg. "Each FitLine product sold gives 'One Hour of Life'. This way, all customers<br />
and distribution partners actively contribute to making a difference in the lives of children!" Over<br />
the past 18 years, €6.1 million have been generated. World Vision uses the donations to build<br />
wells and schools, educate people about children's rights or to set up birth centers. The focus is<br />
always the same: "Every child has a right to develop in the best possible way! We stand behind<br />
the great work of World Vision and are happy to be able to contribute to it. In the long term, our<br />
goal is to support 10,000 children, because this is a matter close to our hearts," says Vicki Sorg.<br />
FitLine is established in<br />
professional sports for<br />
more than 20 years<br />
More than 1,000 top athletes and over 20<br />
associations in 60 sports disciplines from 30<br />
nations trust in FitLine premium nutritional<br />
supplements for more endurance, concentration<br />
and regeneration. In addition to the<br />
optimal results and tolerability, they appreciate<br />
the high product safety due to the<br />
presence of the entire FitLine nutritional<br />
supplement on the Cologne List®, an<br />
independent service platform for<br />
doping prevention. From a sales<br />
perspective, the testimonials<br />
from professional sports are a<br />
motivation and help in making<br />
new contacts interested in<br />
sports.<br />
Achim Heukemes<br />
- Extreme sports legend (69 years):<br />
- World Champion 10x Ironman M55<br />
- Vice World Champion 24h time trials & duathlon (Masters)<br />
- 6 World Championships in 5 years / 5 medals<br />
"The products have been with me for more than 20 years –<br />
I wouldn't have been able to maintain this level without FitLine."<br />
DIRECT SELLING MAGAZINE I www.direct-selling-magazine.de I 11
COVERSTORY<br />
The most succesful leaders worldwide<br />
(in alphabetical order) I 15.5.2021<br />
Gyokyuran Arai<br />
Japan<br />
Hege Bläcker<br />
Sweden<br />
Jürgen Bruckner<br />
Austria<br />
Young Hwi Cho<br />
Korea<br />
Marcel Dezsö<br />
Switzerland<br />
Andreas Gutekunst<br />
& Andreas Ulbrich<br />
Germany<br />
Joachim Heberlein<br />
Germany<br />
Yu Ying Ji<br />
Japan<br />
Helene & Rudolf Junker<br />
Switzerland<br />
Sion Kim<br />
Korea<br />
Carsten Ledulé<br />
Germany<br />
JaeDuk Lee<br />
Korea<br />
YunHee Lee<br />
Korea<br />
Yaming Li<br />
Germany<br />
Sabine & Wolfgang<br />
Lindemann<br />
Germany<br />
Marina Longhi<br />
Italy<br />
Eliseo Molinari & Trinidad<br />
Garcia / Spain<br />
Björn Müller<br />
Germany<br />
Ute & Tino Puschmann<br />
Germany<br />
Yi Qu<br />
Germany<br />
Ivan Riva<br />
Italy<br />
Giulia Romanelli<br />
Italy<br />
Adele Samarelli<br />
Italy<br />
Ralf Wünsch<br />
Germany<br />
Karin Zuber<br />
Germany<br />
DIRECT SELLING MAGAZINE I EDITION 05 // 2021 I 12