Source: The Salt Lake Tribune 8/20/2006

Nu Skin wins concession in China

Nu Skin wins key concession in China By Lesley Mitchell

Utah's Nu Skin Enterprises plans to begin selling its line of personal-care and nutritional products door-to-door in China by November after becoming one of only two U.S. companies allowed to engage in direct selling in that country. For years, China has prohibited companies from selling products through direct-sales programs. To tap the vast Chinese market, direct-selling companies have had to open stores in the country instead of relying on a network of independent sales representatives. Provo-based Nu Skin, which entered the Chinese market in 2003, has 160 stores in mainland China. But in February, China officially lifted the ban on direct sales by giving Avon approval to begin recruiting Chinese sales associates. Since then, the U.S. cosmetics maker said it has recruited more than 100,000 salespeople in China. Nu Skin, which received its approval this week, said Friday it is wasting no time hiring a team of associates and is confident it can quickly erase Avon's five-month head start.

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