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Nu Skin Enterprises

Coordinates: 40°14′00″N 111°39′37″W / 40.2334366°N 111.6601706°W / 40.2334366; -111.6601706
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Nu Skin Enterprises
Company typePublic
NYSE: NUS
IndustryPersonal care, nutraceuticals
Founded1984 (1984)
FounderBlake Roney, Steve Lund, Sandie Tillotson
Headquarters
Provo, Utah
,
United States
Area served
Worldwide
Key people
Blake M. Roney (Chairman)
M. Truman Hunt (President, CEO, and Director)
Ritch N. Wood (Vice President and CFO)[1]
RevenueIncrease US$ 1.54 billion (2010)[2]
Increase US$ 217.062 million (2010)[2]
Increase US$ 136.051 million (2010)[2]
Total assetsIncrease US$ 892.224 million (2010)[2]
Total equityIncrease US$ 471.249 million (2010)[2]
Websitewww.nuskin.com

40°14′00″N 111°39′37″W / 40.2334366°N 111.6601706°W / 40.2334366; -111.6601706

File:Nu Skin High Rise.jpg
Headquarters in Provo, Utah

Nu Skin Enterprises (NYSE: NUS) is an American direct selling company[3] that develops and distributes personal care products and nutritional supplements that are sold under the Nu Skin and Pharmanex brands.[4] Nu Skin was founded in 1984 in Provo, Utah.[5]

From its inception, Nu Skin International operated solely in the United States until 1990. During that time, the young company launched 18 products, ranging from moisturizers, enhancers, hair products and sunscreen[6].

The company began its first international operation in Canada in 1990. One year later, the company began operations in Asia with the opening of Hong Kong [7]. In 1992, Nu Skin’s 10-story high rise was completed [8] and still remains, to this day, a landmark in Provo, Utah[9]. In 1996 the company listed on the New York Stock Exchange. Initially only the Nu Skin Asia Pacific company was listed; however, shortly afterward all remaining company affiliates were sold to the new entity and Nu Skin Enterprises became a fully fledged public company.

Following a 1994 investigation by the Federal Trade Commission (FTC), the company paid $1 million and signed a consent decree prohibiting it from making deceptive or unsubstantiated claims about its products.[10] In 1997, the company paid an additional $1.5 million to the FTC to settle ongoing allegations of unsubstantiated promotional claims.[11]

In 2010, the company reported its highest ever earnings with US$1.54 billion in revenue in 51 international markets.[2] As of 2011, Nu Skin operates in 51 countries in North America, Europe, and Asia.[12]

As of 2011, Nu Skin operates in 52 countries in North America, Europe, and Asia. [13] The company sells more than 200 products ranging from skin and hair products, to their anti-aging flag ship ageLOC products [14]. Nu Skin maintains an A+ rating with the Better Business Bureau (BBB) [15]. The company is also a member of the Direct Selling Association, (DSA), and the Direct Selling Education Foundation (DSEF) [16].

Business Model

Nu Skin Enterprises’ business model combines direct selling with a multi-level marketing (network marketing) strategy. Each distributor, or "Independent Business Owners" markets products directly to potential customers. They also have the opportunity to recruit (sponsor) and train other people to become distributors. Distributors earn income both from the retail markup on any products they sell personally, plus a performance bonus based on the sales volume they and their downline (distributors they have sponsored) have generated.[17]


Brands and products

Under the Nu Skin and Pharmanex brands, the company develops and sells more than 200 anti-aging personal care products [18] that work to accomplish the same goal: to help people look and feel younger. [19]

Under the Nu Skin side of the business, the company provides hair, skin and cosmetic products. They also offer a full line of ageLOC products which claim to target the ultimate sources of aging that directly influence how people age. [20]

In 1996, Nu Skin acquired Pharmanex, a nuetrasutical company. [21] Pharmenex carries a weight loss line of products, various vitamins and dietary supplements, and a juice. [22]

A portion of proceeds from some product lines is donated internally to the Nu Skin Force for Good Foundation.[23] The company markets anti-aging dietary supplements under the Pharmanex brand.[24]

Humanitarian Efforts

Force For Good Foundation: The original force for good campaign was introduced in conjunction with the Nu Skin Epoch product line in 1996.[25] The Epoch product line covers skin and hair care products and was developed in partnership with leading ethnobotanists.[26] A donation of 25 cents from the sale of each Epoch product was directed to preserve the environments, languages, lifestyles, and traditions of indigenous people around the world. [27]

Nu Skin Enterprises provides for all overhead and administrative costs of the Nu Skin Force for Good Foundation.[28] The Nu Skin Force for Good Foundation is based in Provo, Utah and is a registered 501(c)(3) non-profit organization in the United States.[29]

Reception

The nutritional supplement Pharmanex LifePak Anti-Aging was tested by ConsumerLab.com in their Multivitamin and Multimineral Supplements Review of 38 of the leading multivitamin/multimineral products sold in the U.S. and Canada. Testing included amounts of selected index elements, their ability to disintegrate in solution per United States Pharmacopeia guidelines, lead contamination threshold set in California Proposition 65, and meeting U.S. Food and Drug Administration (FDA) labeling requirements.[30]

Although the supplement passed all laboratory tests, ConsumerLab reported the product as failing the overall review due to not clearly indicating its total amount of Vitamin A per FDA requirements.[31]

Political activities

In 2011 two Utah incorporated business entities linked to top executives of Nu Skin each made $1 Million contributions to the Super PAC "Restore Our Future".[32] Restore our Future is a political action committee established by former aides to US presidential candidate Mitt Romney to support his bid for the White House.

References

  1. ^ "Nu Skin Executives". Hoover's, Inc. Retrieved 2008-12-26.
  2. ^ a b c d e f Nu Skin 2010 Annual Report Selected Financial Data - page 34
  3. ^ http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=NUS:US
  4. ^ http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=NUS:US
  5. ^ http://utahvalleybusinessq.com/uv50/2011-uv50-top-10-revenue-companies
  6. ^ http://www.nuskinenterprises.com/20anniversary/timeline/june.shtml]
  7. ^ http://www.referenceforbusiness.com/history2/21/Nu-Skin-Enterprises-Inc.html
  8. ^ http://www.deseretnews.com/article/595047521/Nu-Skin-timeline.html
  9. ^ http://www.deseretnews.com/article/595047541/Nu-Skin-has-evolved-into-giant--and-changed-Provo-area.html
  10. ^ "Consent Order C-3489" (PDF). Federal Trade Commission. 1994-04-01. Retrieved 2010-12-25.
  11. ^ "Nu Skin to Pay $1.5 Million Penalty to Resolve FTC Charges Over Fat-Loss Claims for Supplements". Federal Trade Commission. 1997-08-06. Retrieved 2008-12-26.
  12. ^ Nu Skin SEC Filing Form 10-K
  13. ^ http://www.nuskin.com/content/corpcom/en_US/company/corporate_press_kit/global_presence.html
  14. ^ https://www.nuskin.com/en_US/products/nuskin/view_all_products.html
  15. ^ http://www.bbb.org/utah/business-reviews/multi-level-selling-companies/nu-skin-enterprises-in-provo-ut-84110111
  16. ^ http://www.dsa.org/forms/CompanyFormPublicMembers/search?action=find]
  17. ^ Xardel, Dominique (1993). The Direct Selling Revolution. Understanding the Growth of the Amway Corporation. Blackwell Publishing. pp. 1–4. ISBN 978-0631192299.
  18. ^ (http://www.cosmeticscop.com/brand_review.aspx?tid=370&brand=Nu+Skin)
  19. ^ http://www.nuskin.com/content/nuskin/en_US/culture/company_history/the_history.html
  20. ^ http://www.fundinguniverse.com/company-histories/Nu-Skin-Enterprises-Inc-company-History.html
  21. ^ http://sis.windhover.com/buy/abstract.php?id=199810153
  22. ^ http://www.mirror99.com/20050611/nu_skin_enterprises_buys_land_announces_new_pharmanex_manufacturing_facility_in_fji.jspx
  23. ^ http://news.google.com/newspapers?id=h-5LAAAAIBAJ&sjid=wewDAAAAIBAJ&pg=3878,2716675&dq=epoch+nu+skin&hl=en
  24. ^ Reuters http://www.reuters.com/finance/stocks/keyDevelopments?symbol=NUS. {{cite news}}: Missing or empty |title= (help)
  25. ^ http://sarahantos.com/2011/07/nu-skin-epoch-products-preserve-cultures-and-ancient-traditions
  26. ^ http://sarahantos.com/2011/07/nu-skin-epoch-products-preserve-cultures-and-ancient-traditions
  27. ^ http://www.fundinguniverse.com/company-histories/Nu-Skin-Enterprises-Inc-company-History.html
  28. ^ http://angelachase.com/nu-skin-third-party-review-product-effectiveness-farce-3-of-3-2
  29. ^ http://www.forceforgood.org
  30. ^ "ConsumerLab Multivitamin and Multimineral Supplements Review - Testing Method". 15 June 2011. Retrieved 18 August 2011.
  31. ^ "ConsumerLab Multivitamin and Multimineral Supplements Review - Main Review". 15 June 2011. Retrieved 18 August 2011.(subscription required)
  32. ^ Martin, Jonathan (July 31, 2011). "PAC brings in $12.2 million for Mitt". Politico. Retrieved August 4, 2011. {{cite news}}: Unknown parameter |coauthors= ignored (|author= suggested) (help)
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