1. Should Nu Skin enter the Chinese market with a type of distribution that is new to...

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1. Should Nu Skin enter the Chinese market with a type of distribution that is new to the company? Explain. Nu Skin Enterprises, Inc. was ready in 2003 to roll out a line of skin care products for 1.3 billion consumers in mainland China, a move that has many challenges but could pay off in a big way. The Provo, Utah company is the latest US skin care product maker to gain entry to China’s large market. It has spent US$70 million and four years of development to gain approval to start selling its specially developed Chinese product line at 31 retail locations in 14 cities. It also has a manufacturing facility.

China represents an important building block in the company’s plans. With some of its current markets, such as Hong Kong and Taiwan, already mature, the company needs to enter new markets in order to drive revenue and earnings growth. Nu Skin’s biggest single market is Japan, which generates 50% of revenue. In fact, its home market, the United States, contributes only about 17% of sales and is seeing waning revenue.

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