The company plans to open more than 100 retail outlets in Guangdong, Shanghai, Zhejiang, Jiangsu and Fujian early next year. Nu Skin was forced to modify its direct selling business for China, which set up a regulatory ban on direct selling in 1998.
Over the last five years, Nu Skin Enterprises claims it has invested about US$80 million to acquire local manufacturing facilities, retail outlets, and research and development resources in China - nearly 10 times the initial investment previously made by the company in other markets.
Corey Lindley, president of Nu Skin Greater China, said: "As part of China's pact with WTO, restrictions on direct selling will be decreased in December 2004. However, it is doubtful that direct selling companies like Nu Skin will be able to offer the traditional business models in the near future.
"We're proving to the Government that we are willing to work within their framework of guidelines to offer consumers the premium quality products available in our other 34 international markets. We have developed our business model based on nine years of research in the market."
While sales in China will take place at fixed locations in line with current regulations, the company will maintain its personalised approach by providing training to in-store employees. Nu Skin expects revenue from China to reach $300 million in five years. Nu Skin kicked off limited operations in China in December 1999 with its first outlet in Shanghai.
It employs about 800 staff in China.
US household products giant Amway was the first to modify its direct sales model for China when the ban was imposed in 1998. It combined its retail outlets with a team of sales reps. For a fee, clients could become "privileged customers", enabling them to buy products at a discount.
