Skincare empire has overcome initial consumer confusion to capitalise on the Chinese diaspora in the US and Canada
Revisiting the Hong Kong offices of Nu Skin Enterprises 14 years after the fanfare of their launch is an enlightening experience.
Back in 1991, the arrival of the clean-cut Utah Mormon bosses of the now vast skincare empire was greeted with some scepticism. Multi-level marketing, or direct sales as Nu Skin insists on calling it, was poorly understood in 1991 even though Amway and Tupperware had blazed a similar trail. Hong Kong seemed too small a place for network sales to endure.
The image of multi-level marketing has had a bumpy ride, thanks to public confusion which has been compounded by periodic dodgy pyramid-selling scheme scandals in China. These led to the mainland authorities slapping a blanket ban on direct sales in 1998.
No such ban exists here, and Nu Skin has built a business with an annual turnover of $300 million. They listed in New York in 1996, and global sales hit a massive US$1.14 billion last year in the 39 countries where they operate. Growth is 15 per cent per annum.
Founded by Mormons from Provo, Utah, the company operates according to a strict philosophy. There is no borrowing of money and their earnest mission statement sums up their philosophy: 'We are in business to act as a force for good throughout the world. We do this by selling exceptional products, by providing rewarding direct sales business opportunities and by supporting distributors, stockholders, consumers, and employees in ways that improve their quality of life.' And all this by selling premium skincare products and Pharmanex dietary supplements.