Thailand - Nu Skin looks for OEM manufacturer in SE Asia

The US direct-sales company Nu Skin Enterprises is looking for a third-party manufacturer in Thailand to produce its skin- and healthcare products for Asian markets.

Currently, all Nu Skin products are imported from the US. The new business strategy aims to cash in on the emergence of the Asean Economic Community (AEC) in 2015. The AEC will help Nu Skin move products more easily around the region with a sound financial sense when any new product is launched.

With the community in place, complicated regulations will be minimised, with fewer documents and lower taxation, said Melisa Quijano, Nu Skin's president for Southeast Asia and the Pacific.

To take advantage of the AEC scheme, the parent company will allow the Southeast Asia and Pacific branch to produce its global-brand products in the region by hiring a third-party manufacturer.

"Asia is fast-growing, and about 80% of global Nu Skin sales are contributed by North Asia, Southeast Asia, Greater China and the Pacific," she said during her Bangkok visit yesterday.

Last year, a regional warehouse was set up in Singapore to distribute Nu Skin products to the Asian network.

Ms Quijano said the new strategy was adopted last year, and Nu Skin will choose a third-party manufacturer in either Thailand or Singapore this year.

The original-equipment manufacturerwill start producing Nu Skin products later this year and the output will be supplied to Asia.

"Thailand has high potential to be our third-party manufacturing base, as the country has many good facilities to produce skin- and healthcare products," she added.

Prior to this, Nu Skin has commissioned local factories in Thailand to produce its Scion brand of skin-, body- and haircare products for years.

Sales of Nu Skin worldwide in 2011 increased by 13% to a record high US$1.74 billion. Of the total, over $200 million came from Nu Skin Southeast Asia and Pacific region.

For Thailand, its sales grew by 10% to 2.2 billion baht despite the floods in the fourth quarter of last year, said Pakapun Leevutinun, president of Nu Skin Enterprises (Thailand).

This year the company will continue its success in Thailand with the launch of new anti-ageing products such as dietary supplement ageLOC R-Squared and ageLOC Galvanic body spa.

After the official launch of new ageLOC products, the company expects total sales in Thailand will rise to 5 billion baht within 2015.

"AgeLoc is the strongest product opportunity to enhance our business. The popularity of anti-ageing products among Thais is quite strong," Mrs Pakapun said.

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