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Company type | Private |
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Industry | Multi-level marketing |
Founded | 2007 |
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Headquarters | , U.S. |
Area served | United States, Canada, Australia |
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Products | |
Website | www |
Rodan & Fields, LLC, known as Rodan + Fields or R+F, is an American multi-level marketing company specializing in skincare products. Katie Rodan and Kathy A. Fields, creators of Proactiv, started the Rodan + Fields brand in 2002 and sold it a year later. They relaunched the brand in 2007 as a multi-level marketing firm.
Rodan + Fields uses independent consultants to sell its products.[1] Its business model has been criticized by consumer advocates as being a pyramid scheme.[1]
History
[edit]Fields and Rodan met in 1984 during their dermatology residency at Stanford University School of Medicine. In 1995, they developed Proactiv Solution as a preventative skincare for acne.[2][3] Proactiv is now a registered trademark of Guthy-Renker and Nestlé.[4]
In 2002, Fields and Rodan launched Rodan + Fields. Products were sold in department stores. The following year, the company was purchased by Estée Lauder.[1] In 2007, Fields and Rodan reacquired the brand[5] and transitioned the company from department stores to multi-level marketing, where consultants can earn a commission for their own sales and for the sales of people they recruit.[1] Rodan + Fields launched in Canada in February 2015 and in Australia in September 2017.[1][6]
In 2018, private equity firm TPG bought a minority stake in the company. At the time, Rodan + Fields was valued at $4 billion.[7]
In April 2020, the US Federal Trade Commission (FTC) issued a warning letter to Rodan + Fields for making unlawful and misleading earnings claims related to COVID-19.[8]
In 2021, Rodan and Fields is named the number one skincare regimen brand in the United States for the fourth year in a row (2018-2021).[3]
In October 2022, the founders launched a whole line of shampoos, conditioners and stylers, on top of their skincare.[9][10] In November 2022, Rodan and Fields were a part of a class action lawsuit in regards to their Lash Boost serum. The company offered $38 million to resolve the issue as well as change their verbiage on the product usage, instructions, and warnings.[11][12]
Products
[edit]In 2002, Fields and Rodan launched their skincare line. Those products ranged from cleansers, to acne treatments.[5] Their Redefine skincare line is a three step regimen. Starting from either a Clay or Foaming Cleanser (Step 1), a Pore Refining Toner (Step 2), A Defense Lotion or Cream (Step 3), and lastly a Restorative Cream or Lotion (Step 4).[13]
In 2020, the company launched their Anti-Aging Regimen.[14]
In 2022, the company expanded into haircare and launched the Volume+ and Smooth+ lines, both with a scalp first approach.[15]
Business
[edit]Rodan + Fields has its headquarters in San Francisco, California.[16] Its products include cleansers, toners, moisturizers, creams, exfoliators and sunscreens.[5]
Rodan + Fields distributes via multi-level marketing,[17] which has been criticized by consumer advocates as akin to a pyramid scheme.[1][18] Consultants focus on social media, phone and in-person presentations to sell products and invite others to join their team.[19] The average 2015 annual income for a consultant was $3,182.[20]
Per the 2016 Income-Disclosure agreement, 90% of Rodan + Fields members earned less than $200 per month and 96% earned less than $500 per month.[21] In 2016, 125,348 (representing 44% of all recruits) recorded zero earnings and are thus no longer considered active.[21] 2% of active sellers make the annual minimum wage or higher.[1] Most use Rodan + Fields to supplement, not replace, other work.[22]
References
[edit]- ^ a b c d e f g Vincton, Kate (1 June 2016). "How Two Dermatologists Built A Billion Dollar Brand In Their Spare Time". Forbes. Retrieved 13 September 2017.
- ^ Singer, Natasha (2007-10-18). "Why Should Kids Have All the Acne?". The New York Times. ISSN 0362-4331. Retrieved 2021-07-12.
- ^ a b "RODAN + FIELDS CELEBRATES 15 YEARS OF CHANGING LIVES". Yahoo Finance. 22 March 2023. Retrieved 2023-04-11.
- ^ Gretler, Corinne (25 March 2016). "Nestle Forms Alliance with Bieber's Fave Acne Cure Proactiv". Bloomberg.
- ^ a b c Lipton, Lauren. "The Truth Behind Rodan + Fields (And Its Takeover of Your Facebook Feed)". Allure.com.
- ^ Philips, Carli (10 July 2017). "Internet is taking direct selling from the knock on the door and parties". The Australian. Retrieved 13 September 2017.
- ^ Voytko, Lisette. "A Wrinkle In Time: Why Rodan + Fields' Founders Lost Their Billionaire Status". Forbes. Retrieved 2021-07-12.
- ^ "Warning Regarding Earnings Claims Related to Coronavirus Disease 2019 (COVID-19)" (PDF). US Federal Trade Commission. April 24, 2020. Retrieved June 6, 2020.
- ^ "Rodan + Fields Haircare Is Here to Remind You That Scalp Is Skin". Harper's BAZAAR. 2022-11-09. Retrieved 2023-04-11.
- ^ Sandler, Emma (2022-10-24). "Rodan + Fields jump-starts brand expansion with launch into hair care". Glossy. Retrieved 2023-04-11.
- ^ "Rodan + Fields Pays $38 Million to Resolve Lash Boost Class Action Lawsuits". Beauty Packaging. Retrieved 2023-04-11.
- ^ Actions, Top Class (2022-03-28). "Rodan + Fields Lash Boost $38M class action settlement". Top Class Actions. Retrieved 2023-04-11.
- ^ "The Rodan + Fields Redefine Regimen Worked Wonders for My Skin". Men's Health. 2022-11-17. Retrieved 2023-04-12.
- ^ "Rodan + Fields Just Launched a Completely Reimagined Anti-Aging Regimen". NewBeauty. 2020-10-19. Retrieved 2023-04-12.
- ^ "Rodan + Fields Has a New Hair-Care Line". NewBeauty. 2022-11-01. Retrieved 2024-04-24.
- ^ Mattioli, Dana; Tan, Gillian (2015-02-18). "Skin Care Company Rodan & Fields Pursuing a Sale". Wall Street Journal. ISSN 0099-9660. Retrieved 2018-08-15.
- ^ Jackson, Nancy Mann (29 May 2015). "Three startups that want to steal Avon's look". Fortune.
- ^ Doctorow, Cory (7 November 2016). "John Oliver shreds multi-level-marketing pyramid schemes". Boing Boing. Retrieved 13 September 2017.
- ^ Lewak, Doree (3 February 2015). "$40,000 a month, Lexus cars: Meet the new Avon ladies". New York Post.
- ^ Leinbach-Reyhle, Nicole (25 April 2016). "The Rising Success Of Rodan + Fields Thanks To Nontraditional Retail And Savvy Women". Forbes. Retrieved 16 March 2017.
- ^ a b Rodan, Fields (1 January 2016). "2016 Income Disclosure Statement" (PDF).
- ^ Dickler, Jessica (2018-02-17). "How to keep from going broke from your friend's side hustle". CNBC. Retrieved 2022-02-02.
Further reading
[edit]- "Skin Care Company Rodan & Fields Pursuing a Sale". The Wall Street Journal. February 18, 2015. Retrieved 5 May 2016.