Nu Skin eyes strong China market
Eyeing massive consumption potential of China's growing middle-class, personal-care products maker Nu Skin Enterprises (NSE) is ramping up investment in the fast-expanding market, describing it as a "substantial part" of the company's growth plans.
Truman Hunt, president and CEO of NSE, said the company plans to invest close to 200 million U.S. dollars in building stores and manufacturing facilities in China next year, to keep up with rising demand.
"We are deploying a lot of capital in China because we believe in the future of the market," Hunt told Xinhua.
To better tap the market, the New York-listed company has invested over 450 million RMB in building a new offices in Shanghai, its largest ever foreign investment, according to Hunt.
He saw Greater China (mainland, Hong Kong, Taiwan), which reported 450 million U.S. dollars in sales revenue for the first half of the year, as the biggest revenue contributor for the company this year.
Nu Skin was the first foreign-invested direct selling company to be licensed to do business in China. So far, the company has acquired admission to operate in 19 Chinese provinces and regions.
Hunt recognized the challenge for the company's operations in China as their network is expanding fast.
"Sometimes we have rogue sales people who go out and mispresent the way we do businesses in China," Hunt admitted, adding the company will continue to focus on training sales people to avoid misleading product claims and protect consumer rights.
The company will continue to cooperate with Chinese regulators to make sure its operations in China are in compliance with Chinese laws, Hunt pledged.
As a multinational company in China, NSE continually transmits its Force For Good in Great China. Nu Skin Force For Good Foundation was founded in 1996, and it has created more than 800 million RMB in donations in China by October 2013. Hunt promised that the company will continually expand the area and amount of donations in China.
Shares of Nu Skin closed October 11 at 95.65 U.S.dollars on the New York Stock Exchange.