As a well-known company in the global health field, Herbalife has been adhering to the philosophy of "quality first" since its establishment in 1980, and has gained the trust of the public by providing high-quality products backed by science. At present, the company's business has spread to more than 90 markets around the world. According to Euromonitor International, a world-renowned market research organization, Herbalife is the No. 1 brand in the world in terms of total retail sales of healthy shakes in 2022.
In recent years, Herbalife China has also carried out a lot of fruitful work in the fields of product quality management system, consumer rights protection, and compliance culture, striving to achieve high-quality and sustainable development of the company, so that Herbalife's development in China has reached a new level.
Backed by science
Create a "seed-to-table" quality management system
Bollywood has always insisted on winning the trust of consumers and the public with the quality and safety of its full range of high-quality products. In 2010, Herbalife officially launched its seed-to-fork quality management system worldwide. This system consists of 14 steps, from seed to table, every link of the entire industrial chain from seed to table strictly controls the quality and safety of products, and ensures that all Herbalife products have a source to follow from multiple dimensions, so as to truly achieve "peace of mind and health".
When it comes to the selection of raw materials, Herbalife carefully selects high-quality, natural raw materials around the world. In the case of tea products, for example, the company's product leaders will visit the country's major tea-producing areas to ensure that they are in an environment far away from urban and industrial pollution sources. Herbalife's Raw Materials** will identify and rigorously test ingredients as required to ensure they meet or exceed Good Manufacturing Practices (GMP) and the company's stringent requirements.
Herbalife is located in Nanping, Fujian Province, where tea products are produced.
In the production process, the company is committed to building a "clean factory". The air entering the clean area must be purified through primary, medium and efficient purification, and its production environment must be kept in line with the 100,000 cleanliness standard. The Changsha plant conducts regular hygiene monitoring of clean areas (sedimentation bacteria, planktonic bacteria, dust particles, microorganisms on the surface of gloves) and process water (tap water, purified water). The factories in Suzhou, Nanjing and Changsha have also realized the best logistics distinction to eliminate cross-contamination, and their material channels are equipped with linkage doors to ensure that the production environment meets the requirements.
At the testing level, each ingredient undergoes in-house analytical testing to ensure that it meets Herbalife's high standards. Herbalife monitors raw materials for contaminants, including heavy metals, pesticide residues, aflatoxins, etc. The company has been investing heavily in this area. Last year, the company upgraded the high-performance liquid chromatography (HPLC) in the Suzhou factory laboratory to further improve the sensitivity of laboratory detection, even for low levels of heavy metals in raw materials.
Herbalife's milkshake production line at its Nanjing factory.
For plant-based raw materials, due to the complexity of species and origin, their identification has always been a difficult problem in the industry. Herbalife's global raw material manufacturing base in Changsha uses DNA technology to identify each batch of incoming plant materials to determine the authenticity of plant raw materials, and these rigorous tests are the basis for Herbalife's product quality.
In order to ensure product quality, Herbalife's three factories in China have also developed a comprehensive quality management system. Including training system, personnel health management system, first-class business management system, facilities and equipment maintenance system, production process management system, storage and transportation management system, clearance and cleaning management system, verification management system, sample retention management system, non-conforming product management system, laboratory management system, etc.
It is worth mentioning that the company has also established a product tracking and monitoring information system for listed products - product traceability code, which realizes the traceability of the whole process of products from raw materials, production process to transportation, and then to consumers.
Protecting consumer rights
Create a healthy and beautiful new life
Herbalife has always attached great importance to consumer rights and product experience. Herbalife China has established a sound consumer protection system and integrity service system, and strictly controls product sales channels to ensure that consumers obtain qualified products, and at the same time fully protect consumer privacy and security, and safeguard the legitimate rights and interests of consumers.
In the sales process, Herbalife strictly regulates the sales order to ensure that consumers get high-quality products. In the process of operation, Herbalife always sells at a unified retail price, and resolutely resists low-price and first-class sales. The company guides consumers to buy Herbalife products through official stores and other formal channels such as publishing articles on WeChat, helps consumers identify "high-price real and fake mixed sales" and other means, and explains in detail how to distinguish the authenticity of products for consumers and safeguard the rights and interests of consumers by issuing a guide to distinguish genuine and fake Herbalife genuine and fake goods.
Herbalife's "Quality Testing Laboratory" located in Changsha raw material base
The company's compliance department has also continued to carry out a series of special crackdown actions to create a fair and orderly market environment, so that violations have nowhere to hide. After a series of "combination punches", during the "Double 11" period in the past three years, the sales of Herbalife's low-cost products on the e-commerce platform have shown a downward trend year by year. As of September this year, the compliance department has cracked down on more than 70 stores on mainstream e-commerce platforms. In recent years, the company has also maintained the market sales order through the "network clearing action", standardized product sales channels, and actively cooperated with the regulatory authorities to seize a number of counterfeit products made by counterfeit batch numbers, fake sealing films and other counterfeit methods.
In terms of customer service, Herbalife China has built a multi-channel, all-round 7 24-hour customer service platform to receive all kinds of customer inquiries and complaints in a timely manner. At present, the company has adopted AI intelligent services to make consultation more convenient and accurate. Including customer service**, Herbalife also offers a staff service that covers weekdays and weekends. For all kinds of difficult escalation cases, the company promises to provide 2 working days of service response time, and internally cooperate with various functional departments to set up work order processing contacts, open a green channel for special cases, and ensure the efficient resolution of special cases.
In order to effectively protect the legitimate rights and interests of consumers, Herbalife provides consumers with a consumer protection service known as the "** rule": providing customers with 30-day return and exchange protection. In accordance with the Herbalife Customer Protection Terms, if the product is unopened and unused within 30 days from the date of purchase, the customer may apply for a return or exchange with the proof of purchase.
Create a compliance culture system
Comprehensively strengthen compliance education and training
Since entering the Chinese market, Herbalife has always adhered to the business philosophy of "integrity and self-discipline", strictly abided by various laws and regulations, integrated compliance management into every aspect of its operations, and created a comprehensive compliance culture system.
The company is fully committed to promoting the construction of a compliance culture for marketers. Herbalife continues to carry out a variety of compliance training and guidance through a variety of channels, including special courseware and training**, offline conference presentations, online live broadcasts and other diversified channels. As a compliance promotion platform loved by the majority of marketers, "Herbalife Compliance*** has been insisting on combining current affairs and normative knowledge since its launch in 2017, and promoting the concept of compliance to marketers in an entertaining way through diversified creative forms such as creative H5, long**, dynamic posters, and comics. Up to now, it has published about 1,000 articles, gained as many as 150,000 fans, and won the Golden Bit Award, an authoritative award in the field of mobile marketing.
Information**. Herbalife has also developed and designed a credit rating system (CRS) based on its own characteristics, which will be launched for marketers in 2021. Through big data analysis and back-end model support, this system transforms complex data into visual credit scores, and conducts an objective, transparent and fair evaluation of the behavior patterns of service providers. After CRS was launched, the company continued to optimize it, making its data dimensions more diversified, the variable rule logic more rigorous, and the model application strategy more perfect, which was well received by marketers.
In order to better meet the training needs of different marketing personnel, Herbalife's compliance department has also specially created a compliance training demand platform to smooth the channels for reflecting the training needs of marketing personnel, respond to the training demands of marketing personnel on different compliance topics in a timely manner, and create customized and personalized training content for them, so as to improve the service experience of compliance training. In February of this year, the training demand platform 2Version 0 was officially launched and put into use. The upgraded platform includes new features such as "one-click check-in" to bring a more user-friendly experience for marketers.
For the company's internal employees, Herbalife has created a standardized and rigorous ethical compliance management system. The company regularly carries out ethical and compliance culture construction projects, such as annual certification of ethics and compliance, compliance ambassador program, ethics and compliance culture week, etc., conducts more than 10 training sessions for employees every year, and ensures that each person participates in at least one event every year. In recent years, the company's Ethics & Compliance Department has won the ACCP Most Supportive Enterprise of the Year Award for two consecutive years, and has been successfully shortlisted for the 2023 Best Compliance Department list announced by ALM Corporate Counsel in the United States.
Although the external environment has been changing, Herbalife's original intention of "always doing the right thing" and providing consumers with high-quality nutritional products has always been the same. Looking forward to the future, Herbalife will continue to adhere to its commitment to quality, focus on high-quality development, give full play to its rich resources and advantages in the field of nutrition and health, and contribute to the construction of a healthy China.
Edited by Luo Qi).