Nu Skin brings US beauty and wellness to China with US$55M facility

01 Dec 2023 --- US-based Nu Skin Enterprises opens a manufacturing facility in Shanghai, China, after investing approximately US$55 million over the past few years. The facility will increase its personal care production capacity and supply chain responsiveness in China and other Asian markets.

It is located in the Fengxian District of Shanghai and built in accordance with green building standards. The company believes that will let it maintain a high production capacity while conserving energy and reducing water consumption. 

“We have a 20-year history in Mainland China, and we continue to invest in our future in the region,” says Ryan Napierski, Nu Skin president and CEO.

“This new facility, along with our China headquarters completed in 2014, represents our two largest overseas investments and a significant commitment to China as a key R&D and manufacturing center for the company.”

Increasing efficiency
Nu Skin Enterprises also has manufacturing facilities in the US as part of its Rhyz subsidiary, an ecosystem of consumer, technology and manufacturing companies. Rhyz is the strategic investment arm of Nu Skin Enterprises.

Nu Skin is a multilevel marketing integrated beauty and wellness company which it calls an “affiliate opportunity platform.”

Nu Skin Enterprises opens a manufacturing facility in China to  increase its personal care production capacity.The company says the manufacturers drive the core of the business and provide services to 120 other customers. Nu Skin Enterprises is a family of companies that includes Nu Skin and Rhyz. Brands include Nu Skin personal care, Pharmanex nutrition and ageLOC anti-aging. It operates in nearly 50 markets worldwide.

Steve Hatchett, Nu Skin executive VP and chief product officer, adds: “This state-of-the-art manufacturing facility quadruples the production capacity for Nu Skin in China.”

“We developed it with Industry 4.0 standards in mind to use smart and autonomous systems fueled by real-time data analysis and machine learning. A fully automated warehousing system will also seamlessly link production with logistics to increase efficiency.”

Over 200 guests attended the grand opening, representing local government, industry and consumer associations.

Weaker demand in China
Nu Skin recently reported earnings and said it was “disappointed in the third quarter results” which were “softer than expected.” 

It blames the lower results on persistent macroeconomic challenges in several key markets, negatively affecting consumer spending and customer acquisition, particularly in China and the Americas. 

Many Japanese companies have also seen sales drop due to weakened demand in China.  Personal Care Insights recently reported on a boycott campaign against Japanese personal care brands. The backlash comes from Japan’s controversial release of treated wastewater from the Fukushima nuclear power plant into the Pacific Ocean. 

Cosmetics giant Shiseido saw its stock drop to a 16-year low in Tokyo earlier this month right after it slashed its full-year profit forecast.

By Sabine Waldeck