The Operation and Management of A Direct Selling CompanyNu Skin As An ExampleNational Sun Yat-sen University Presented by Johnathan Kunz Vice President, Nu Skin Taiwan May 23, 2006
Lecturer Profile Johnathan Kunz – Vice President of Sales, Nu Skin Taiwan • Joined Nu Skin Enterprises in 1997 • Account Manager • MBA-Brigham Young University 2001 • Global Business Opportunity Development • New Market Development • Appointed as Vice President of Sales for Nu Skin Taiwan in April 2004
President of Nu Skin Taiwan John Chou
Presentation Structure 1. Nu Skin Enterprises Overview 2. Nu Skin Enterprises Milestone 3. Nu Skin Taiwan Milestone 4. Company Mission and Vision 5. Compensation Plan 6. Product/Marketing Strategy 7. Company Culture 8. PR 9. Communication 10. Distributor Support 11. Service Centers and Logistics 12. Code of Ethics
Company Overview • Operations in 41 markets • Premium-quality products • Tradition of innovation • Top-10 U.S. direct-selling companies
Direct Sales Overview Top U.S. Companies RevenueProducts Avon $7,700M Personal Care Amway $6,200M Various Mary Kay $1,800M Cosmetics Herbalife $1,300M Weight Loss Tupperware $1,200M Household Products Nu Skin Enterprises $1,100M Skincare / Nutrition Pampered Chef $ 700M Home Care Source: Company reports
Founded in 1992 Reached top 10 in the first year 1996 – (Business Weekly) survey: Top brand 1997 – 500 Top Companies service industry :Ranked #96
1998 – Founder visited President Lee 1999 – Endorsed by COC 2002 – 10th Anniversary. Founder visited President Chen 2003 – (China Times) survey: #1 in Brand Awareness, Product Satisfaction, Corporate Image, Distributor Character 2004- Outstanding Performance: Revenue Growth +11%, EGB Bonus Growth +10%, Executive Growth +102% 2005 –Gold Medalists Endorsement Chen Shih Shin
Mission Statement Our Mission is to be a force for good throughout the world by empowering people to improve lives with rewarding business opportunities, innovative products, and an enriching and uplifting culture.
Vision Statement Our Vision is to become the world’s leading direct selling company by generating more income for distributors than any other company.
Direct Sales OverviewSelected Top Direct Selling Companies Avon $7,700M 11% $ 847M Amway $6,200M 33% $2,046M Mary Kay $1,800M 15% $ 270M Herbalife $1,300M 33% $ 429M Tupperware $1,200M 10% $ 120M Nu Skin Enterprises $1,180M 43% $ 507M Pampered Chef $ 700M 10% $ 70M Annual Revenue Commission Rate Total Payout Source: press releases, company estimates
Innovative Compensation Plan • Global Seamless • 6 Generation 5%
We Create Millionaires Global 20 Millionaire - 20 accounts 10 Millionaire – 20 accounts 5 Millionaire – 71 accounts 1 Millionaire – 463 accounts Taiwan 10 Millionaire – 1 account 5 Millionaire – 6 accounts 1 Millionaire – 52 accounts
Nu Skin Products - All of The Goods, None of The Bad.
Pharmanex Products - Provided by Natural, Proven by Science
R&D Team – Top Scientists • Over 130 Scientists • Dr. Carl Djerassi • Worldwide labs
In Search of Excellence - Company Awards -
The Measurable Difference Biophotonic Scanner Science technology breakthrough ProDerm
Best Products Certified 5 Health Food Licenses BioTech Awards Innovation Award Green Mark
Product Endorsement • COC • Gold Medallists
Pharmacological Standard - Product Quality / 6S • Selection • Sourcing • Structure • Standardization • Safety • Substantiation
Brand Awareness China Times Survey in 2003 Corporate Image Brand Awareness Product Quality Satisfaction Distributor’s Character
Culture “Our mission is to be a force for good in the world ….”
Nourish the Children “Nourish the Children may be 5 percent of what we do, but it is 95 percent of who we are.” –Blake Roney
Nourish the Children VitaMeal Production Facility in Lumbadzi,Malawi New VitaMeal Facility Under Construction in Jixi, China Produces enough food to feed 30,000 children a day and provides jobs for 700 Malawians Will have capacity to produce more than one million meals per month. NTC Global Sales Report: Donated over 40 million meals through Nourish the Children .
Force For Good Foundation I want to be the do good company in the world. - Blake M. Roney
Force For Good Foundation • 25 cents for each Epoch product sold • EB research and care • Seacology Foundation • Secure rain forest • Dr. Paul Cox • $13 million donated Since 1996 • Foundation donates more than $1 million actually to projects around the world
Force For Good In Taiwan NTC – Vita Meal Donation To Hua Lien (花蓮)
Stanford University史丹佛大學醫學院 School of Medicine EPIDERMOLYSIS BULLOSA RESEARCH PROGRAM 先天性表皮鬆解症(EB)研究計劃
How EB Got Its Name EB名稱的由來 • Epidermolysis is breaking apart of skin • “Epidermolysis”是皮膚破裂的意思 • Bullosa means blister • “Bullosa”是水泡的意思 • Epidermolysis Bullosa = EB • EB=先天性表皮鬆解症