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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

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