Mainland China Opportunity Training May 2007. Overview of Mainland China Market. China Statistics. Land Mass: 9,600,000 sq km Population: 1.3 billion Retail Sales: RMB5.395 trillion (2004). Nu Skin (China) Retail Store Coverage. Mainland China Market Forecast. Direct Selling:
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It is forecasted that revenue from direct selling in China will exceed RMB100 billion by 2008.
In the next few years, cosmetic market in China will continue to expand at an annual rate of about 10% with sales reaching RMB80 billion by 2010.
It is forecasted that by 2010, revenue from nutrition products in China will exceed RMB120 billion.
2005 Direct Selling Regulations promulgated
Nu Skin (China) obtained direct selling license in July 2006
1996 DS Industry estimated revenue: US$100 million
2002 DS Industry estimated revenue: US$1 billion
1990 Beginning of DS Industry
2001 voted into WTO
2005 DS Industry estimated revenue: US$5 billion
Nu Skin (China) started direct selling in Shanghai in January 2007
1998 Government imposed ban on Chuan Xiao
1993 – Investigative trips to China
1993-1997 – Expansion throughout Asia and the world
1998 – Began investment in China
- Acquired Pharmanex assets
- Development stalled due to government imposed ban
1999 – Revised strategic plan based on government regulations
2000 – Acquired retail stores
2001 – Nu Skin manufacturing plant completed
2002 – Aggressive expansion plans announced
2003 – Launched Retail Store Model in mainland China
- with TE and Executive participation
2006 – Nu Skin (China) obtained direct selling license
2007 – Nu Skin (China) launched direct selling
By the end of 2006, investment in China reached US$100 million.
Construction of the First Hope School in
Chun An County
Nu Skin has helped build 5 Hope Schools
In the next few years, Nu Skin will continue to help build Hope Schools in China. The total number of schools will be more than 60.
Part-time Direct Seller
Customers purchase products at full retail price, similar to any other retail establishment.
Individuals who become a Preferred Customer will enjoy a 10% discount on product purchases.
Direct selling companies and their Branches should not recruit the following personnel:
Direct Seller Bonus (DSB)
Qualifying Sales Representative (QSR)（Applicable to unapproved direct selling area）
It refers to actual purchase price.
Bonus base = NRS/1.17*0.9
Retail Sales Bonus (RSB) 20%-25%
Remark: The RSB is calculated separately from the QSR volume.
Sales Employee with outstanding performance and leadership ability will have the opportunity for advancement. Sales Leaders are responsible for guiding and conducting weekly training to their supervised Direct Seller, QSR and SR.
- Attend China specific training and pass examination
- Submit China Training Agreement (CTA)
Do Not:• Discuss Global Compensation Plan
• Promote get-rich scenarios
• Discuss future finances and retirement
• Talk negative about government enterprises
• Talk about distributor groups
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