So fresh!
„What do you want? To work for others, or to build a brand?“ asked Johannes Gutmann, a chamber consultant 30 years ago, who had just lost his job at the Waldviertel regional development agency.
His environment: The cold, old Waldviertel region shortly after the Iron Curtain in a system between Kreisky and the Farmers' Association, a HAK (Higher Commercial Academy) diploma and a WU (Vienna University of Economics and Business) degree that was cut short after 14 days, the experiences as a farmer's child and as a beer representative, the memory of the emotional stories the village grocer told about each of his products.
Thirty years ago, on August 1, 1988, Johannes Gutmann decided to build a brand and became self-employed. He asked five organic farmers if they would grow herbs; three agreed. "I wanted to be free and have fun. If you laugh, you'll be smiled back. And it costs nothing! That's how the smiling sun logo came about." The founder and CEO captivated the visitors of the Brand Club Austria with his success story, "From Dreamer to Winner," right from the start.
In the beginning, Johannes Gutmann sold herbs and teas in Zwettl's main square – constantly asking his customers for their opinions. He sees development as a continuous process of adjustment: "Do what your heart and gut tell you, and you'll be fine. And if it doesn't work out, correct it. Only crises move you forward! The path unfolds as you walk it." He drew peace, tradition, experience, and wisdom from the older generation, his local farmers, who offered him not only their handiwork but also their attic storage.
The impetus for the cosmetics brand was a dental health day at kindergarten: "When our son brought home a well-known toothpaste from kindergarten – given to him by the 'tooth-cleaning lady' – we noticed that it contained dangerous ingredients. I immediately wrote to Greenpeace. They were conducting chain reactions at Toys 'R' Us at the same time and didn't have time for toothpaste. We're still waiting for a reply."„
The advantage: Marketing professionals build their network from the outset and learn to understand communication rituals. For example, today there are specialists for the restaurant industry and others for retail; previously, it was one and the same team.
The company developed rapidly – also in terms of design.
In Hartberg, now home to over 100 employees, it all began in 1993: „We borrowed 4 million schillings from the Volksbank, set up a laboratory – just as we had envisioned it, with face masks and white coats. Ulla did the stirring, and I filled out the Excel spreadsheets. We then bought the mixing machine for 560,000 schillings. Our friends and acquaintances laughed at us when I showed them the first printed materials, created in PageMaker and Corel Draw.“ The company developed rapidly – also in terms of design.
The rebranding „so fresh“ and the clear design language come from the company’s second agency – moodley – from 2013 and are noticeable from the packaging to the vegetarian canteen.
Ulla Wannemacher offered vegetable sticks and the top-selling supplement "chi" as a snack and continued, while in the background at reception, white-branded boxes and bags of products were being handed out: "We had to have a concept because we wanted to do it better than the others. When you include so many active ingredients, you have to leave something else out. We didn't leave out anything unnecessary. But that didn't make the cosmetics last any longer."„
Freshness and sales ideas as a recipe for success
RINGANA fresh cosmetics contain no preservatives – RINGANA's unique selling point. "Initially, we had to throw away many batches because the products didn't keep well, and we were bitterly disappointed. When we wanted to consult with the president of the Chamber of Pharmacists in the mid-90s, he laughed at us, and we were out after ten minutes. Then the bank started giving us trouble. It wasn't until ten years later (registered in 1993, first products in 1996) that we finally turned a profit," explained Andreas Wilfinger, who initially developed the formulas himself: "Working out a formula is usually simple: ointment base, water, cortisone. But we didn't want to use either animal-derived ingredients or mineral oils. Since there was no internet back then, the research was time-consuming.".
Today we have a top-notch chemist. We first tested the products on our family, then on the hotel guests. So we never had to think about animal testing,“ he said cheerfully. „The spa guests always happily took the products home with them. But suddenly, complete strangers—their neighbors and friends—started calling us. Of course, we sent them the products. The number of orders grew from two to three, then to five. The fortunate coincidence was that we programmed our sales system using precisely this network marketing approach.“
Direct sales are a key element of the brand, with both opponents and proponents, but they are undoubtedly a reason for the brand's great success. The decision was made because fresh cosmetics can't sit on the shelf for long – they are only produced when customers order them.
„Word-of-mouth referrals have incredible power. There’s no account manager, no coffee table like with Tupperware. Sales partners receive a commission for referrals. For example, if someone recommends RINGANA to a neighbor, whose contact information they enter online (in compliance with data protection regulations), and that person then makes a purchase, they receive a commission from us. It’s online referral marketing with a face-to-face component, so to speak,“ Andreas Wilfinger explained the sales concept. „Whether the conversation happens on Facebook or on the tram, the referral comes through direct contact. And once the contact’s address is in our system, we take over. Leads are generated face-to-face, the rest happens online.“ He added, after greeting a female employee (as he does everyone, informally): „We could also do this purely with ads, but the conversion rate is significantly lower and the lifespan is shorter than with face-to-face conversions.“
The success is shared with the current 32,000 Freshness Partners (and the goal is to reach 100,000 by 2020): „Our product-loving partners are 901% female, representing an upscale cross-section of the population with a health-conscious background – from doctors, massage therapists, and nutritionists to the average person. Not all of them are Nobel laureates, but their awareness and level of education are quite high.“
„Once a Freshness Partner has handed over the contact, we take over with a customer magazine, press work throughout Central Europe, newsletters, and a lot of social media (10k/month ad budget) to keep the customer engaged,“ Ulla Wannemacher described the communication channels. „We supply journalists with everything from branded towels to cosmetic bags made from old roll-up banners for PR stories. But we wouldn’t advertise.“
Lucy Seteram (Head of Marketing) added: „Bloggers, or rather influencers, come to us, we provide them with products, and they create stories, all across Europe. No cash commission is paid. Of course, bloggers also have the opportunity to become sales partners. One example is Daria Daria, who posts our products as PR samples without receiving any money.“
The tour continued through the office, the 'competence center' with language correspondents who communicate with partners in five languages, and the product department with 15 employed chemists who continuously optimize the products: "We invest heavily in our wealth of experience and the expertise of our very congenial human capital," Wilfinger explained, "but what we don't have is market research. We go by gut feeling. I've never understood why market research statistics are necessary. Consumers don't know what they want if you ask them directly.".
The data in the CRM system shows whether the product is a good fit or not. Our reorder rates also indicate where a new attempt is needed.“ RINGANA doesn't want more than 50 products in its range: „Having only 50 products keeps us fresh and agile. For our sales partners, that's already a lot. If a product generates less than 0.51% of sales, it's discontinued.“ It's noteworthy that RINGANA only offers one product per category (e.g., shampoo): „The best, not variety, is what counts.“ Each product is beautifully packaged by hand in the brand's signature style.
A brand that combines sustainability and premium chic.
Besides freshness, sustainability is a core brand value for RINGANA, practiced both internally and externally: from natural packaging using recycled paper, bioplastics, organic cotton towels, paper tape, and edible filler material, to solar panels and reclaimed water, right down to the "first mile" of shipping with their own trucks, the company prioritizes the responsible use of valuable resources. Their vegan products are produced without animal testing. These values have fostered a community that thinks sustainably but also acts with a focus on success. Positioning itself as a sustainable premium brand is a niche that RINGANA has created, and for which design and presentation play a crucial role.
Ulla Wannemacher further explained how RINGANA engages its 32,000 independent Fresh Partners face-to-face: „When we present a new product, we create a buzz with speakers and expert presentations, followed by a party. This has given us a ‚cult-like“ reputation. In reality, however, we simply want to bring the best healthy cosmetics to the market; brand building is secondary.”
Every January, RINGANA hosts its annual kick-off event, followed by a convention in September – featuring stars of the scene like musician and extreme athlete Joey Kelley and mountaineer Reinhold Messner. These events also foster connections and reinforce the branding, as the brand book alone isn't enough to clearly communicate the corporate identity to the independent RINGANA partners. "We don't peek into our partners' living rooms. There are certainly some cool stories there, and some adventurous ones too. But we do meticulously review our partners' social media content. Serious errors are noted as a warning and must be deleted. It becomes difficult for us when trade fair booths, for example in Italy or Spain, don't adhere to the corporate identity."„
Following the impressive growth of 401,000 units in 2016, the founding couple were surprised by an unplanned increase of 501,000 units last year. Internationally (Austria, Germany, Switzerland, Spain, Italy, France, the UK, and Poland in descending order), RINGANA generated €80 million in revenue last year.
„That’s difficult, considering the delivery of 500 raw materials!“ Andreas Wilfinger revealed, describing the recipe behind their enormous success: „We’re not interested in quick profits, but in stable business. Perfect brand management is fine, but what really matters is the customer’s opinion. If she buys twice, the product experience is right. She has to be thrilled – mere satisfaction isn’t enough in today’s competitive landscape.“
The enthusiastic feedback from participants after an inspiring day in Hartberg:
„"It is impressive that RINGANA conveys very clear values both externally and internally!"“
„"I'm amazed that the ethical approach of vegan, organic, and sustainable products can be presented so elegantly as a premium brand. A fantastic founding couple demonstrates how to be responsible AND stylish!"“
„"The outdoor lunch was wonderful! And indicative of the company's philosophy: together, for each other, and sophisticated."“