Nu Skin Sees Benefit From China Policy Shift SHANGHAI — Nu Skin Enterprises is prepping for a new focus in China.
The Provo, Utah-based beauty company — known for its direct sales-driven approach worldwide — has been required to rely only on stand-alone stores on the Mainland since it entered China's retail market in 2003.
But a policy change announced last month by the Chinese government will soon allow direct sales in China, and Nu Skin is preparing to be among the first to take advantage of the new regulations when they go into effect Dec. 1.
The new policy — which removes a 1998 ban on direct sales in China — also is expected to benefit other direct-sales-focused beauty companies such as Amway and Avon, both of which have been forced to rely on stand-alone stores to penetrate the growing beauty market in China.
Avon already has a slight head start on the competition, as the company received special permission to test direct sales in a few markets starting last spring.
But while the policy changes will bring in more competition, Nu Skin representatives predict direct sales will further boost what is typically a booming China market for the brand.
"China has become a huge market opportunity," said Ritch Wood, chief financial officer of Nu Skin. "It holds all the potential to become our largest market at some point in the future — whether that will be in three years or 10 years, we don't know yet."
In 2003, Nu Skin, which currently operates 150 stand-alone stores across the country, had $38 million in sales on the Mainland. In 2004, that number had nearly tripled to $106 million, making China the company's third-biggest market and the source of 9 percent of all company sales.
Now, company representatives are expecting sales in China to jump even more — to up to $150 million in 2006, according to Corey Lindley, the Shanghai-based president of Nu Skin's Greater China operations.
Although direct sales will be a new experience for many of China's newly rich consumers, Lindley expects the sales tactic to resonate with the country's consumers, who are accustomed to relying on personal relationships to do business. "Unlike other markets, personal relationships are a very important aspect to business in China," Lindley said. "Direct sales are a natural fit for doing business in China."Still, the company will have to wait a little longer to fully see the results of the new regulations. Nu Skin will not be able to start China's rigorous direct-sales registration process until the policy change goes into effect on Dec. 1. And, the first wave of next year's expected fleet of 15,000 to 20,000 direct-sales agents won't be trained and on the ground until the end of the first quarter of 2006.
In the meantime, the company is hoping their current stable of 150 stand-alone stores will help set a foundation for the future expansion. "Chinese consumers are interested in the very best products, and our more expensive [stockkeeping] units have been the biggest sellers here," Lindley said. "It's a very good indication of the market's future promise." — Betsy Lowther
Revlon Names Garment VP NEW YORK — Revlon has expanded its product development team as it readies to unveil the company's two biggest initiatives for next year. On Monday, Revlon stated it named Sharon Garment vice president of product development last month. In her new role, Garment oversees the company's product development efforts across all Revlon Inc. brands. She reports to Carolyn Holba, Revlon's vice president of marketing.
Prior to her appointment, Garment ran her own consulting business, which involved developing cosmetics and skin care product lines. Her career in product development spans about 20 years and includes posts at Mana Products, where she is credited with developing the Black Opal cosmetics line, and at the Estée Lauder Cos., where she was vice president of global product development for the Estée Lauder brand.
"Sharon brings considerable experience in all aspects of product development — including formulations, packaging, merchandising and display — to a crucial position within our organization," Holba stated.
Prix Liliane Bettencourt Awarded PARIS — Metal craftsman Bernard Solon was awarded the Prix Liliane Bettencourt last week by French billionaire Liliane Bettencourt, the daughter of L'Oréal founder Eugene Schueller. The Foundation Bettencourt Schueller, founded in memory of Schueller, has honored a group of artisans each year for the last six years.
Presenting the winner with a check for 50,000 euros, or $60,360 at current exchange, as well as 5,000 euros, or $6,036, to each of four runners-up, Bettencourt paid tribute to the talent of France's artisans. "I would like to express our admiration, loyalty and gratefulness to the talent of the artisans of our country," she said. Next year, the prize is to be awarded to artisans who work with precious metals.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews