Nu Skin outlines China plans
American multi-level marketing brand Nu Skin has bold plans to boost its presence in China over the next five years.
Nu Skin’s agenda includes updating existing outlets throughout China and expanding physical locations, with the goal of tripling the number of stores and sales support centers by 2017.
“With nearly a decade of operational experience in China, we are building on a foundation of success to sustain growth in this important market,” said Andrew Fan, president of the company’s greater China region.
Completion of the previously announced US$55 million Innovation Park and greater China regional headquarters in Shanghai are also included in the pipeline for the next five years.
Nu Skin plans to expand its direct selling operations, now that the company has been approved to conduct direct selling over a sufficiently broad geographic area. The company also continues to work to expand the number of direct selling licenses in additional provinces.
In order to reach further into the China marketplace, Nu Skin also plans to expand its distribution with the addition of independent marketers to its existing multi-channel business model. These legally-registered independent business operators are widely used within the direct selling industry in China and would be authorised to operate sales businesses that provide a variety of products and services under the scope of their business licenses.
Fan said the plans are designed to align with the government’s Twelfth Five-Year Plan to support a consumption-driven economy and to increase employment opportunities.
“We believe that the expansion of our distribution alternatives in China will effectively supplement our current distribution channels in this unique marketplace, offering additional business and employment opportunities, improving people’s livelihoods, and paving the way for our long-term, sustainable growth in this important market,” said Fan.
Nu Skin initially commenced operations in China in 2003 with retail stores and employees. In 2006, the company received a direct selling license from the Ministry of Commerce of China, and was permitted to begin direct selling in Shanghai. The company has since received direct selling licenses in over 50 cities or districts covering 15 provinces.