Social commerce with wholesome natural products
Heidelberg-based enterprise hajoona sells dietary supplements and relies on direct sales and a growing international network of distributors. RHIEM has been supplying the entire hajoona network right through to the end customers since the fall of 2017, providing a dependable and rapid delivery service for products for a dynamic environment.
Whether green coffee, aronia pomegranate drink or colon cleanser, all hajoona health products are made with high-quality natural ingredients. The Heidelberg start-up adopts a direct selling policy based on personal advice and word-of-mouth recommendation, operating through thousands of business partners forming an international network which keeps on growing. The RHIEM Group from Voerde now takes care of the logistics, ensuring that the distributors have products to present at any time, that advertising and sales brochures are available at local level, and that the goods ordered by the customers are delivered swiftly. A modern IT interface between the hajoona inventory management system and the RHIEM fulfillment center in Voerde guarantees automated processes – entirely in keeping with the RHIEM motto “order today – no delay”.
RHIEM provides hajoona with the full package of services, from the product logistics right through to the advertising materials. “hajoona has maintained a rapid, profitable and sustainable rate of growth since it was started up four years ago so we had to act quickly to extend storage space and shipping capacity,” said Frank Flader, Logistics and Process Manager at hajoona. “In RHIEM we have found a partner who can help scale our business and who can adapt resources to accommodate our growth at any time.”
Success in direct sales
In October 2017, the German economics magazine Focus published the ranking of the enterprises in Germany exhibiting the strongest growth in its special “Focus Business” publication, listing hajoona for the first time as “growth champion 2018”. Not only did hajoona earn a place in the list of the top 500 enterprises out of the 12,000 analyzed but also scored an immediate entry in the premier league. hajoona actually came top in the “Health / Social Affairs / Education and Training” category, making it the company with the highest level of growth in this sector. Seen across all sectors, hajoona is in the top 10 % of the 500 companies listed.
hajoona is not reliant on any outside funds. The company was built up with its own means and was already able to cover its start-up costs with the sales revenues in its first year of trading. Since the second year of its existence, hajoona has been returning a profit which has at least doubled every year since. There is now a need for hajoona to have advertising materials and product information available in six languages.
RHIEM abides by the top standards of hygiene in its storage of the hajoona health products. Made from selected natural ingredients, the products are carefully stored, packaged and dispatched so as to prevent them from losing any of their goodness. Employees prepare individual bottles and boxes as well as larger containers for dispatch. Fulfillment service provider RHIEM supplies partners and their customers. “Direct sales, social commerce and personal franchise are interesting distribution models,” said Stefan Rhiem, CEO of the RHIEM Group.
Whether they are selling jewelry, dietary supplements, wine, electricity or craft supplies – more and more start-ups are adopting the direct approach. It is a very effective way to sell specialty products in particular which need to be explained to the customer because of the scope for personal input and recommendations. According to the German Direct Selling Association (Bundesverband Direktvertrieb Deutschland – BDD), the volume of sales generated by companies engaged in direct selling has doubled in the last 10 years, with revenues currently standing at 17 billion euro.
“The Internet is also aiding the advance of direct selling,” said logistics specialist RHIEM. Selling used to involve door-to-door representatives physically offering products for sale whereas advisers seeking direct contact with customers today have access to innovative multimedia tools. The distribution partners at hajoona use apps to manage customers and potential leads, for example, and operate an online shop. They also advertise on home pages customized for distribution partners, and deliver invitations with digital “butlers” to start the conversation. Customers can arrange appointments with sales advisers or order fresh supplies from them more easily online. The distribution partners in turn are in a position to forward purchase orders to the manufacturer or to the relevant distribution center swiftly. “There is a growing interest in healthy eating, and hajoona supplies products with genuine added value, so our distribution partners will be able to continue recommending them with conviction,” said Frank Flader. His company is still on course for growth – and RHIEM will be joining it on its journey, including its inroads into other countries.
Dr.-Ing. Thorsten Voigt
Director Business Development & Sales
Gildeweg 10 • 46562 Voerde
Phone: +49 (0) 2855 9700-835