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With A Trajectory Marked By Meteoric Rise, Controversies, And Restructuring, The Brazilian Multi-Level Marketing Company Struggles To Regain The Confidence Of Sellers And Reclaim Its Space In The Market
The Hinode, a national multi-level marketing company, experienced one of the largest expansion cycles of the last decade in Brazil, reaching over 850,000 active sellers at its peak between 2014 and 2018. However, allegations of financial pyramids, investigations by the Public Prosecutor’s Office, and a drop in revenue have taken down the giant, which is now seeking recovery through structural reform and investments in technology.
Founded in 1988 by Francisco and Adelaide Rodrigues, the brand started with perfume production in the garage of their home but only gained notoriety starting in 2008, when the couple’s son, Sandro Rodrigues, bet on the multi-level marketing model. This decision led the company to grow rapidly, driven by the promise of high earnings for those who entered as resellers.
Starting in 2011, Hinode adopted aggressive expansion strategies, including events with celebrities, conventions in stadiums, and recognition programs for outstanding sellers. In 2018, the company reached its peak with R$ 2.7 billion in revenue and a robust network of franchises and consultants spread across the country.
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Luciano Hang revealed that Havan’s air fleet has already accumulated more than 20,000 landings, 10,000 flight hours, and 6 million kilometers traveled, and he says that without the planes, the company would never have grown so quickly.
Controversies Shook The Confidence Of Sellers And Consumers
However, the model that was once celebrated began to be questioned. Several former sellers alleged that the focus had shifted from reselling products to recruiting new resellers, a characteristic typical of schemes considered financial pyramids. This shift in focus led to investigations by the Public Prosecutor’s Office, directly impacting the brand’s reputation.
Despite the allegations, the company has always maintained that it operates within the law and that its structure is based on legitimate multi-level marketing, with earnings derived from product sales and commissions on formed teams. Nonetheless, the brand faced strong contraction, with a drop in the number of sellers and a reduction in its product portfolio, from over 600 to 345 items in 2020.
In parallel with the criticisms, Hinode initiated a series of internal adjustments, such as process automation, workforce reduction, and management modernization. With these measures, the company sought to demonstrate its commitment to business sustainability and the improvement of its consultants’ performance.
New Phase Bets On Generation Z And International Expansion
In search of reestablishing a connection with the public, the company began investing in communication aimed at young consumers, particularly from Generation Z. One of the hallmarks of this new phase was the launch of the Vibes perfume line in 2024, with strategies targeting networks like TikTok.
Additionally, Hinode has also been betting on international expansion, operating under the name Hinode Group in countries like Mexico, Colombia, Peru, and Chile. The goal is to leverage the expertise built in Brazil to reach new markets in Latin America and expand the base of international sellers.
Even with these efforts, the numbers reveal that challenges remain significant. The number of resellers dropped to about 600,000 in 2023, and the revenue, which once reached billions, was estimated at R$ 750 million in the same year. Still, the brand remains one of the leading names in the direct sales sector in Brazil.
Institutional Recognition And Defense Of The Business Model
The Hinode emphasizes that it offers real and quality products, distancing it from financial pyramid models that do not involve concrete sales. According to the company, the initial investment of a new consultant is made through the purchase of products for resale, rather than through entry fees or vague promises of financial returns.
Moreover, organizations such as ABPEC (Brazilian Association of Personal Hygiene, Perfumery, and Cosmetics Industry) have recognized the brand on various occasions, including as the company of the year in 2016, which helps legitimize its role in the sector.
This information was shared by the channel Conhecimento Disruptivo, which published an extensive video retracing the company’s journey, including historical data, revenues, testimonials, and the transformations faced over the years.
Even with the adversities, the Hinode continues to operate and try to reinvent itself, remaining active with hundreds of franchises, thousands of sellers, and a catalog that now prioritizes high-margin items. The company believes that restructuring, combined with transparency and innovation, will be essential to regain market trust and that of its consultants.
Have you ever been invited by a friend to an “unmissable meeting” only to be offered the chance to work with Hinode — as long as you purchased a product kit?
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