Nu Skin 2010 Annual Report - Direct Selling News

BUILDING FOR THE FUTURE
In 2011, we will also break ground
on the Nu Skin Enterprises Global
Innovation Center. This $85
million facility will significantly
expand our corporate presence, but
more importantly will give us a
platform to continue to innovate both
within our product lines as well as
within our direct sales business
model. We believe Nu Skin is known
as the most innovative company
in direct selling. We intend to
maintain that reputation.
As good as these results are, the true measure of our success is found in the positive
impact we are having on the lives of people around the world. In 2010, an incredible
number of people chose to join our distributor ranks to help them achieve their personal
and professional goals. With an innovative product portfolio, generous compensation
plan, and devoted and talented distributor leadership, we were able to help more people
grow their businesses as demonstrated by solid growth in both active and executivelevel
distributors and a record-level payout of sales commissions—nearly $650 million.
We are proud of the incredibly impressive group of people who comprise the
Nu Skin family globally. Not only did we elevate our level of financial success,
but our collective force for good culture helped us to reach another important
milestone—donating more than 200 million meals to malnourished children
through our Nourish the Children initiative.
Equally inspiring was the way our global family came together in the aftermath of
the recent earthquake, tsunami and nuclear crisis that have caused havoc in areas
of Japan, our largest market. Our thoughts immediately turned to the safety and
well being of the tens of thousands of loyal Nu Skin Japan distributors, employees
and customers. Our worldwide distributors and employees quickly rallied together
to offer relief to those in Japan valiantly confronting unforeseeable hardships. Given
our history in Japan, understanding of the culture, and resiliency of our Japanese
distributor leaders, we have no doubt that the people of the land of the rising sun
will successfully tackle these challenges and emerge even stronger.
KEYS TO ELEVATING GROWTH
With a great run over the last few years, some may wonder whether Nu Skin can
sustain growth and if we have what it takes to continue to elevate our results
To answer this question—yes we can, and yes we will!
We have established a solid financial foundation and a culture of innovation
that will continue to provide ample ammunition to help us sustain our
growth over the next decade. In 2011, we’ll build on our success by focusing
on six key factors that will help elevate our business.
GROWTH
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Favorable Market Trends
We continue to leverage the socio-economic and industry trends that are driving
people toward anti-aging and home-based businesses. For example, take the
appeal of the direct selling channel. According to the World Federation of direct
Selling Associations (WFDSA), nearly 65 million people worldwide are participating
in direct selling, generating more than $114 billion in sales.
Over the past 8 years, the direct sales channel has grown a solid 5 percent. Nu Skin
has a strong presence in the largest direct selling markets of the United States,
Japan and Mainland China and continues to attract the best of the best to its direct
selling business opportunity.
Another global trend that bodes well for Nu Skin is the aging demographic and the
expanding anti-aging market. Expected to be the next trillion-dollar industry, the
anti-aging market continues to grow at a remarkable pace. This is understandable
when you consider that by 2025 there will be an estimated 832 million people over
the age of 65, representing 10.4 percent of the world’s population.* People may not
mind getting old, but they do mind looking and living old. Our products and business
opportunity are targeted to address this large and rapidly growing market.
(footnote: *According to statistics from the United Nations Population Division.)
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