The Proactiv Dermatologists Break the Billion-Dollar Barrier– Again.
After 35 years as service partners, skin doctors Katie Rodan and Kathy Fields still do whatever together-- including provide interviews. "Recently a female recognized me," Fields says. "She said, 'You're Katie Rodan!' I said, 'Close!'"
They have actually reached street-level celebrity thanks to their smash-hit skin-care line, Proactiv, which offers about $1 billion in products a year through shopping mall kiosks and infomercials including the similarity Katy Perry and Justin Timberlake. Their most current line of treatments, called Rodan+Fields, reached $ 1.5 billion in sales in 2015-- mainly through experts who offer to their buddies and contacts, like social-media-era Mary Kay ladies.Friends from medical school, they came together in the late 1980s over a shared frustration from their personal practices: Offered acne treatments were generally useful only after pimples appeared. They formed a partnership and developed a three-step treatment system to prevent stopped up pores and started shopping it around. Through an unlikely series of connections-- a father's colleague's partner-- they were gotten by Guthy-Renker LLC, a direct-sales business."They were the only company interested in us, but it ended up being the absolute best thing, since it enabled us to craft a message: three medications, full face, low-strength, every day," Fields says. "If it sat in the shop, people would not have understood."
S. Tyler Hollmig, an associate professor of dermatology at Stanford, where Rodan and Fields are adjuncts, says skin items have the tendency to be either well-marketed potions with little science behind them or excellent items that consumers do not use properly. Proactiv Co. and Rodan + Fields LLC break the molds. When students interact with the 2 business owners, Hollmig states, "they are taking a look at a legend in the field."
Rodan and Fields started developing targeted routines for other typical skin issues, such as brown spots and aging, shortly after launching Proactiv and in 2002 launched them under Rodan + Fields. Estée Lauder Inc. obtained the brand a year later on, and for 4 years the set saw it go to pieces on department-store shelves. "Clients were concerning us not due to the fact that Esteé Lauder did any great marketing but since of word-of-mouth," Fields says. "So why were we rewarding the outlet store, providing them 50 percent of the margin?"
They redeemed Rodan + Fields in 2007, worked with a tech business to develop a stock system, and decided not to need specialists to purchase stockpiles. As social media gained in popularity and universality, so did Rodan + Fields. Today there are more than 200,000 sellers worldwide.