Social
media was born in 1969 with the first commercial online service by CompuServe.
In an impressive evolutionary trudge to its current state, social media
officially grew legs the business world in 2011, and within the last four years
alone has made tremendous advances in application and mass utilization. Today,
as evidenced by the progressive business model of a Texas-based innovator,
social media has come to its next phase of evolution at the convergence of
social media and commerce.
CVSL
is only one of innumerous businesses using social media, but while social media
companies wrangle and experiment to find an effective strategy to turn their
social networks into commerce – often relying on what many consumers consider
bothersome advertising – CVSL has already found its formula, sans advertising.
CVSL
is a growing group of micro-enterprise companies that connect social media
networks into a perpetually expanding virtual “community.” The company has
amassed a growing base of millions of connections in what it calls the
“consumer cloud.” Each time a new micro-enterprise company joins CVSL, the
number of connections in the consumer cloud – as well as the number of
connections with whom CVSL has a relationship – expands. Everyone connected to
the CVSL cloud is offered economic incentives, such as discounts and other
benefits on an unlimited number of products and services, to join, sell, buy
from and remain with CVSL’s virtual community.
Aside
from its U.S. headquarters in Dallas, Texas, CVSL operates its international
headquarters in Luzern, Switzerland. CVSL initiated its strategy of
acquisitions in the direct-to-consumer space in March of 2013, and has built a
current portfolio of eight micro-enterprise companies and a presence in
multiple categories, including home décor, gourmet foods and spices,
nutritionals, skincare, home improvement and home security. In early December
2014, CVSL successfully advanced its stock to the NYSE. With these significant
milestones in the bag, CVSL has assumed a stronger position from which to
better focus on mergers and acquisitions.
There
are hundreds of micro-enterprise companies worldwide, and CVSL’s acquisition
strategy calls for consideration of each potential history, culture, product,
career plan, market and most importantly, the owners’ objectives. CVSL isn’t
interested in being part of an exit strategy, but rather seeks to acquire
businesses from owners desiring to grow their company as part of CVSL’s
consumer cloud.
Earlier
this year, CVSL found a company that fit the bill and in early February 2015
signed an agreement to acquire Kleeneze, a United Kingdom-based
direct-to-consumer company with more than 7,000 independent distributorships
offering a wide variety of several thousand cleaning, health, beauty, home, outdoor
and other products to customers across the U.K. and Ireland. Founded in 1923,
Kleeneze is one of the UK’s longest-operating direct-to-consumer businesses.
Upon
completion of the transaction, Kleeneze will be the ninth company in CVSL’s
portfolio and will mark an important step in its international expansion.
According to the news release, the combined trailing 12-month revenue of CVSL
and Kleeneze, as of September 30, 2014, was more than $180 million.
In
August 2014, CVSL reported a 19.5% increase in Q2 gross revenue compared to Q2
2013. The company had gross revenue of $24.6 million and an operating loss of
$4.1 million in the current quarter, compared to gross revenue of $20.6 million
and an operating loss of $3.3 million in Q2 2013. Gross revenue for the first
six months of 2014 was $51.3 million, more than double the gross revenue
reported for the first half of last year. Most notably, CVSL eliminated roughly
$8.5 million in bank debt at the beginning of 2014 and paid off its last
remaining bank debt in early fall.
CVSL
is guided by an impressive team of directors, members of which include former
U.S. Senator Kay Bailey Hutchison; and John P. Rochon, a highly accomplished
investor and business strategist with more than three and a half decades of wide-ranging
success in finance, operations, business planning, sales, brand-building and
marketing.
Backed
by a growing portfolio, strong acquisition strategy, increasing global
presence, and strengthening financial position facilitated by solid leadership
you’ll find CVSL at the convergence of social media and commerce ushering in a
new era of micro-enterprise.
For
more information, visit www.cvsl.us.com
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