Nu Skin to expand direct selling distribution in China

Andrew Fan, president of the company's Greater China region, said in terms of infrastructure, the plan also includes completing a previously announced $55 million 'Innovation Park' in Shanghai, which will include a research and development center, manufacturing capacity, and an experiential centre scheduled for completion near the end of 2013.

Nu Skin's physical presence in China will be expanded with the goal of tripling the number of stores and sales support centers over the next five years.

In addition, with recently issued direct selling licenses in several provinces, Nu Skin plans to extend the company's product distribution channels to include independent business operators, in a fashion consistent with employment opportunities that the direct selling industry typically offers.

The skincare brand has already received direct selling licenses in over 50 districts covering 15 provinces.

Because the geographic scope of its direct selling licenses has been limited, the company's focus to date has been on its employed sales force who sell products from within stores. New legally registered independent business operators will now be authorised to sell Nu Skin products and services from their own places of business.

"We believe that the expansion of our distribution alternatives in China will effectively supplement our current channels and pave the way for our long-term growth in this important market," added Fan.

Nu Skin initially commenced operations in China in 2003 with a retail-store business model. In 2006, the company was permitted to begin direct selling after receiving a license from China's ministry of commerce.