As part of its recent Greater China regional convention, the US-based personal care and dietary supplements company announced both a change in its China leadership, and that it has entered into an agreement for a USD 210 million strategic investment with a domestic Chinese firm.
The announcements follow the company’s recent first quarter results, which although slightly above expectations, remained underwhelming; revenue in Greater China was down 15% year on year, and globally, the company’s revenue was down 13% to $471.8 million, compared with $543.3 in the first quarter of 2015.
The recent announcements suggest Nu Skin hopes its traditionally key market of China holds the answer to future growth.
All about China
The company’s China operations will now be headed up by Charlene Chiang, who takes on the role of president for Nu Skin’s Greater China region.
She will oversee the new investment from Ping An ZQ Growth Opportunity, consortium of Chinese investors, which is set to be put towards repurchasing common stock and investing in the company’s China operations, according to Nu Skin.
“We are honored to have the support of Ping An and ZQ Capital as we look to accelerate our growth and development in China,” said Truman Hunt, chief executive officer.
“Ping An and ZQ Capital bring significant local market knowledge and valuable expertise that we believe will positively impact our long-term growth opportunities in this important region.”
Product launches form the backbone of Nu Skin’s strategy to reassert itself, according to the company’s CEO, who said of the first quarter results: “We are optimistic about the impact of upcoming product launches, which began in April and will continue in the second quarter.”
Indeed, it’s a strategy which so far seems to be paying off: the company notes that it recently launched its ageLOC Me skin care system in China, and sold out of a limited inventory within weeks.