Why Vorwerk's Business Model is so successful?

Vorwerk owes its status as an internationally successful and old established company to its readiness to embrace change and its mission to produce exceptional quality. Vorwerk & Co. was founded in Wuppertal in 1883 and, over the more than 130 years of the company’s history, has made the transition from carpet factory to a broadly diversified, international corporate group. Nevertheless, Vorwerk remains a family business to this day.

Social impact:

Life changing: heirloom, affiliation/belonging

Emotional: badge value, design/aesthetics, nostalgia

Functional: makes money, quality, sensory appeal

Cross-subsidiary:

When products and goods and products and services are integrated, they form a subsidiary side and a money side, maximizing the overall revenue impact. A subsidiary is a firm owned entirely or in part by another business, referred to as the parent company or holding company. A parent company with subsidiaries is a kind of conglomerate, a corporation that consists of several distinct companies; sometimes, the national or worldwide dispersion of the offices necessitates the establishment of subsidiaries.

Direct selling:

Direct selling refers to a situation in which a company's goods are immediately accessible from the manufacturer or service provider rather than via intermediate channels. The business avoids the retail margin and any extra expenses connected with the intermediaries in this manner. These savings may be passed on to the client, establishing a consistent sales experience. Furthermore, such intimate touch may help to strengthen client connections. Finally, direct selling benefits consumers by providing convenience and service, such as personal demonstrations and explanations of goods, home delivery, and substantial satisfaction guarantees.

Ingredient branding:

Ingredient branding is a kind of marketing in which a component or ingredient of a product or service is elevated to prominence and given its own identity. It is the process of developing a brand for an element or component of a product in order to communicate the ingredient's superior quality or performance. For example, everybody is aware of the now-famous Intel Inside and its subsequent success.

Multi-level marketing:

MLM, also known as pyramid selling, network marketing, and referral marketing, is a type of multi-level marketing, is a contentious pyramid-shaped marketing technique that generates profit from two income sources. From a participating salesperson's sales force, which is paid based on the salesperson's direct sales as well as the sales of other salespeople whom the participating salesperson recruited and their recruiters down the line.

Low touch:

Historically, developing a standard touch sales model for business sales required recruiting and training a Salesforce user who was tasked with the responsibility of generating quality leads, arranging face-to-face meetings, giving presentations, and eventually closing transactions. However, the idea of a low-touch sales strategy is not new; it dates all the way back to the 1980s.