MEXICO - Economy
CEO & President, Hy Cite Enterprise
Paulo Moledo joined Hy Cite’s team in 2019 as vice president of strategy after a long career at leading global corporations including JAFRA, Avon, and AOL. At Hy Cite, he has spearheaded key transformations in new product development, IT, customer relationship management, and global brand strategy, resulting in sustained growth across international markets. In 2020, he became company president and in early 2022, he was appointed CEO. He holds a BS in economics from Mackenzie University in Brazil and an MBA from the University of Miami.
Our company was created 63 years ago by the Gil family, which it still belongs to. This is the first time that it has a non-family member as CEO. The company today is present in nine markets. And despite our presence in the US of over 64 years, we work exclusively with Latinos in the US and in all other markets. Mexico was our second market after many years in the US. The company’s mission, among other things, includes helping Latinos to establish a business anywhere in the world. Therefore, through direct selling and our exceptional kitchenware product, we give Latinos a business opportunity to have their own business and we use direct selling as the channel to make that happen. Today, we have 10,000 distributors in Mexico, which is our second-largest market accounting for around 30% of our total business. In regard to our added value, customers are first exposed to our products through our distributors and independent distributors. That is our differentiator in terms of achieving the ultimate goal. We are strongly committed to the direct sellers and knowing the independents and encouraging their success. Second, we work with full-time independent distributors. Our products have fantastic value and perceived value, which makes the business as attractive for the distributor as the products are for the consumer. Our cookware line is our main category. And, for example, with the stainless-steel items we give a 50-year warranty. When the distributor visits a customer at home for the product demonstration, they fall in love and have a sense of pride in acquiring. Moreover, we make the purchase easier for the consumers through our direct-to-consumer financing program. One of the consequences of this focus on direct selling and making distributors successful is that we have an 80% annual retention rate for people who go through the initial training program, which takes a few months. This rate is unheard of in the direct selling industry. Ultimately, this is because we are not pushing products that consumers don’t want it. They love the product.
The company has experienced double-digit growth over the past 20, and not just in Mexico. Every year, we have registered growth, of which we are truly proud. Over the past four years, the Royal Prestige brand has seen worldwide growth of 82%. We are set to end 2022 with total revenues of USD505 million. Mexico is the second-largest market, accounting for 30% of the total business, and we believe this will continue to be the case. We are introducing approximately 12 new products within the next 18 months, and that will give more business to our distributors. We have 800,000 active consumers today in our client database making a payment. So, we have strong plans for the New Mexico brand, including being part of Master Chef. Prestige has been sponsoring the Master Chef program in Mexico for the past two years, and we intend to do so again, as it gives the brand substantial visibility to create brand awareness. For the new year, we will continue to invest heavily in traditional and digital media. Digital media, notably social media, is crucial as well, and our investment in Mexico will continue to grow. Our intention is to again achieve double-digit growth over 10% in Mexico in 2023. It will surely happen because we continue recruiting new distributors, who in turn continue to expand our nationwide presence. Our business model has proven to be the products that are outstanding with 50-year warranty on the book, where the distributors model with an important audio opportunity ahead of the any other direct sellers. And we are committed to the direct selling model.
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