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China Is A Maze, Not A Wall For Direct Sellers; Be Prepared – Lawyer

This article was originally published in The Tan Sheet

Executive Summary

Dietary supplement firms, including direct sellers, must have a local legal entity and manufacturing capabilities in China in order to distribute their products, Attorney Michael Chen stressed at a seminar for industry April 20

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Nu Skin Unfazed By Allegations Of China Violations, Projects More Growth

Following allegations from short seller Citron Research that it operates a “pyramid compensation scheme” in China, Nu Skin gives investors a peek into its business model. The firm recorded sales growth of 40% in its second quarter, driven by a 152% jump in China, and “the best is yet to come,” Nu Skin says.

Nu Skin Unfazed By Allegations Of China Violations, Projects More Growth

Following allegations from short seller Citron Research that it operates a “pyramid compensation scheme” in China, Nu Skin gives investors a peek into its business model. The firm recorded sales growth of 40% in its second quarter, driven by a 152% jump in China, and “the best is yet to come,” Nu Skin says.

Reaching Asian markets

Nutra Services International is a new service business formed "to help dietary supplement companies enter or improve sales performance in Asian markets" that will initially offer its services in Japan, South Korea, Taiwan and Indonesia, according to a June 20 announcement. The company's founders, Ken Roffe and Steve Hanson, both have launched and managed international brands such as Zila's Ester-C and Kemin's FloraGLO Lutein. "Our in-market management commitment allows companies with a desire to expand their sales activities into Asia...to do so without setting up their own international infrastructure," Hanson says. China is another Asian market that is garnering attention from the supplement industry (1"The Tan Sheet" May 1, 2006, p. 4)...

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