2019 Vault Rankings
About Nu Skin Enterprises, Inc.
Nu Skin Enterprises offers personal care products such as cleansers, toners, and anti-aging skin care products, through a global network of independent distributors, sales reps, and preferred customers. It also sells cosmetics, hair care items, and mouthwash. Nu Skin has its foot in the door in about 50 global markets, including China. Its subsidiary, Pharmanex, sells LifePak nutritional supplements. In addition, the company has its ageLOC Youth nutritional supplement and ageLOC Me customized skin care system to its markets. Nu Skin was founded in 1984 by its former chairman Blake Roney. US is the largest single market, accounting for nearly 15% of total sales.
Nu Skin operates in nine reportable segments: seven geographic Nu Skin Segments, Manufacturing and Grow Tech. Its Manufacturing and Grow Tech segments account for roughly 5% of the company's sales.
The segments consist of the manufacturing and controlled-environment agriculture businesses within its Rhyz strategic investment arm.
Headquartered in Provo, Utah, Nu Skin has distribution and manufacturing centers in Shanghai, China and Draper, Utah. Mainland China is its largest market, accounting for around 30% of total sales. Other major markets and segments include Americas/Pacific (nearly 15%), South Korea (almost 15%), and Southeast Asia (over 10%). The remainder of sales are generated from Japan (more than 10%), Hong Kong/Taiwan (over 5%) and EMEA (over 5%).
Sales and Marketing
Nu Skin relies on person-to-person and social media marketing, rather than traditional media advertising or direct marketing campaigns, to sell its personal care and other products.
The company's distribution channel is composed of two primary groups: its consumer group, individuals who buy products primarily for personal or family consumption and share products with friends and family; and its sales network, individuals who personally buy, use and resell products, and who also find new consumers, and recruit, train and develop new sellers.
However, Nu Skin employs a different business model in China where it has a hybrid business model that utilizes retail stores, sales employees, independent direct sellers, and independent marketers to market its products.
Nu Skin's spent $16.3 million, $19.1 million and $15.6 million of advertising cost for the years 2019, 2018, and 2017 respectively.
Nu Skin has posted mixed results in the past five years, with revenues fluctuating year to year. Its annual revenues have risen by about 8% since 2015. Net income also grew 30% over the same period.
Revenue fell to $2.4 billion in 2019, an approximately 10% decrease from the year prior. The decline in revenue was partially due to sales meeting restrictions and negative media scrutiny in Mainland China, along with the lack of a major product launch in 2019, which the company believes may have caused some decreased engagement in its sales force.
Net income was $173.6 million in 2019, a rise from $121.9 million in fiscal year 2018 due to a decrease in general and administrative expenses to $616 million compared to $662.3 million the prior year. The decrease primarily relates to decreases in labor expense due to decreased employee headcount during 2019, primarily as a result of its restructuring program in the fourth quarter of 2018.
Cash provided by operating activities was $177.9 million in 2019, while investing activities used $71.4 million. Financing activities used another $154.8 million. The company ended fiscal 2019 with $335.6 million in cash and cash equivalents. Nu Skin's primary cash uses in 2019 were for payment of cash dividends and long-term debt payments.
Nu Skin's innovative approach to product development and distribution provides the company with a competitive advantage in personal care and nutritional products and direct selling. To that end, Nu Skin is implementing strategies that cater to its primary product categories, including products under its Nu Skin and Pharmanex brands.
Nu Skin has a strategy for its products categories of Personal Care and Wellness. The strategy for its personal care products is to leverage its distribution channel to strengthen Nu Skin's position as an innovative leader in the masstige and premium personal care markets. Its personal care products also include innovative skin care devices. In 2019, its top-selling products by revenue in this category were two of its innovative skin care devices and related consumables: ageLOC Spa systems and ageLOC LumiSpa treatment and cleansing device.
The strategy for its wellness category is to continue to introduce innovative, substantiated products based on research and development and quality manufacturing. Direct selling has proven to be an effective method of marketing its high0quality wellness products because its sales force can personally educate consumers on the quality and benefits of its products, differentiating it from its competitors' offerings.
75 W Center St
Provo, UT 84601-4432
Phone: 1 (801) 345-1000
Employer Type: Publicly Owned
Stock Symbol: NUS
Stock Exchange: , NYSE
Vice Chairman: M. Truman Hunt
Chairman: Steven J. Lund
CEO: Ritch N. Wood
Employees (This Location): 750
Employees (All Locations): 24,900
Taipei City, Taiwan