Nu Skin announces new expansion plans in China

Nu Skin China, a subsidiary of US-based cosmetics manufacturer Nu Skin enterprises, has revealed initial details of its five-year business development plan for mainland China.

The firm’s new plan includes tripling the number of stores and sales support centres by 2017 and expanding its direct selling coverage and distribution model to generate higher levels of market penetration.

Nu Skin Greater China region president Andrew Fan said with nearly ten years of operational experience in China, the company is planning to build on a foundation of success to sustain growth in the country’s market.

"In terms of infrastructure, our plans include increasing our physical presence in the market by tripling the number of stores and sales support centers, as well as completing our previously announced, $55 million Innovation Park and Greater China regional headquarters in Shanghai," Fan added.

The firm said under its new physical facilities plan, it will update existing outlets throughout China and expand physical locations, and aims to triple the number of stores and sales support centres over the next five years.

Nu Skin said the locations will increase the company’s footprint in a larger area, which will provide consumers with more effective and holistic services, and extend support to the different channels of product distribution throughout China.

The firm said it has also initiated the construction of a new Innovation Park in Shanghai, which is scheduled for completion by the end of 2013.

The new centre will accommodate new research and development centre and increased manufacturing capacity, besides an experiential and sales support centre and regional management office.

Nu Skin said under its Build Direct Selling Coverage strategy, the company will expand its direct selling operations, and also continue working on expanding the number of direct selling licenses in additional provinces.

According to the firm, the Extend Distribution Model will allow it to add ‘independent marketers’ to its existing multi-channel business model in order to increase its reach in the country’s marketplace.