Nutritional science for mind health products
DSM Nutritional Products
The global direct marketing company sells weight-management, nutritional supplements and personal care products in 62 countries via a network of more than one million independent distributors. But it had adopted a retail business model for China in line with domestic regulations.
Chinese authorities moved to restrict direct-marketing due to a prevalence of scams and Herbalife's re-entry into direct sales in the country could signify a new and improved avenue of sales.
"We have worked closely with China's Ministry of Commerce and the State Administration Industry and Commerce over the past year and we are committed to maintaining the highest standards of integrity in the direct-selling industry," said Herbalife CEO Michael Johnson.
While the Chinese government dropped prohibitive laws against direct sales companies, the regulations are still restrictive for many companies.
As a result, the company opened 33 retail stores in 20 provinces throughout China since 2005.
The current license permits Herbalife to conduct a direct selling business in Suzhou and Nanjing in the Jiangsu province. Over six million people live in Suzhou, the fifth largest Chinese city based upon GDP, and approximately eight million people live in Nanjing, which is the second largest commercial center in East China after Shanghai.