NuSkin expands its direct selling in China
permission to expand its direct selling activity in China.
The Provo-based company is now able to operate its direct selling business in 12 districts of Shanghai and 18 in Beijing. The decision taken by the Chinese Ministry of Commerce will allow the company access to an estimated 37 million people living in the two cities. NuSkin produces both skin care products for daily use and one off treatments, which can be purchased through the company's web-site and through a network of independent sales representatives. NuSkin is one of the first companies after Avon to be accorded direct selling rights in China, and hopes to expand its presence in this important emerging market. The move illustrates the increasing popularity of direct selling models in the emerging markets as more and more direct sellers report positive results from Asia and Latin America. The pioneer of the model Avon, which became the first foreign owned company to be given permission to resume direct sales in the country back in 2006, yesterday announced restructuring plans in order to focus on expansion in the emerging markets. In its fourth quarter financial results the company reported sales growth of 28 per cent to reach $67.2m in China, stating that the booming economies of both China and Latin America had helped drive up sales. The Florida-based competitor Tupperware Brands also reported strong third quarter sales figures in 2007 positively influenced by a 20 percent increase in sales in emerging markets. For Tupperware the strongest overall growth came from the Asia Pacific region, while beauty division sales in Central and South America were also high. Similarly, Mary Kay, one of the biggest direct selling cosmetics companies launched its Indian operations last year with an investment of $20m, concentrating on the highly populated New Delhi, Chandigarh and Ludhiana areas; further expansion is planned during the course of the next five years. "We now have more than 350,000 Mary Kay independent beauty consultants in the region," said K.K. Chua, president of Mary Kay Asia-Pacific.
