With Skivisible Pharmaceuticals’ (OTCQB: SKVI) new Kintari subsidiary, there is a huge precedent for success with skin products and network marketing on the public markets. Some of the biggest names on Wall Street use this business model. More importantly than that, they achieve success using their network to lower the cost of the acquisition of new customers. That increases margins substantially. That is why some of these companies are so big. How big?
Let’s look at the top five and their market caps:
- Herbalife Ltd. (NYSE: HLF) – - Market Cap: $4.5B
- Nu Skin Enterprises Inc. (NYSE: NUS) - – Market Cap: $2.92B
- USANA Health Sciences Inc. (NYSE: USNA) - – Market Cap: $955M
- Lifevantage Corporation (NasdaqCM: LFVN) - – Market Cap: $135M
- Blyth, Inc. (NYSE: BTH) - – Market Cap: $102M
Let’s concentrate on the two with the biggest market caps:
Herbalife has many products in its line, but one of its most significant is the Herbalife SKIN line:
From their latest 10Q:
We are a global nutrition company that sells weight management products, nutritional supplements, energy, sports & fitness products and personal care products. As of June 30, 2014, we sold our products to and through a network of 3.9 million independent members, or Members, which included approximately 0.2 million in China. In China, we sell our products through retail stores, sales representatives, sales officers, and independent service providers. Other than in China, we are in the process of making the terminology change from “distributors” to “Members,” since most of them are discount customers. We refer to Members that distribute our products and achieve certain qualification requirements as “sales leaders.”
We pursue our mission of “changing people’s lives” by providing high quality, science-based products to Members and their customers who seek a healthy lifestyle and we also offer a financially rewarding business opportunity to those Members who seek part time or full time income. We believe the global obesity epidemic has made our quality products more relevant and the effectiveness of our distribution network, coupled with geographic expansion, have been the primary reasons for our success throughout our 34-year operating history. As of June 30, 2014, we sold our products in 91 countries.
Our products are grouped in four principal categories: weight management; targeted nutrition; energy, sports & fitness; and outer nutrition, along with literature and promotional items. Our products are often sold through a series of related products and literature designed to simplify weight management and nutrition for consumers and maximize our Members’ cross-selling opportunities.
Industry-wide factors that affect us and our competitors include the global obesity epidemic and the aging of the worldwide population, which are driving demand for weight management, nutrition and wellness-related products along with the global increase in under employment and unemployment which can affect the recruitment and retention of Members seeking part time or full time income opportunities.
While we continue to monitor the current global financial environment, we remain focused on the opportunities and challenges in retailing of our products, recruiting and retaining Members, improving Member productivity, opening new markets, further penetrating existing markets, globalizing successful Distributor Methods of Operation, or DMOs, such as Nutrition Clubs and Weight Loss Challenges, introducing new products and globalizing existing products, developing niche market segments and further investing in our infrastructure. Management also continues to monitor the Venezuelan market and especially the limited ability to repatriate cash.
We report revenue from our six regions:
- North America;
- South and Central America;
- EMEA, which consists of Europe, the Middle East and Africa;
- Asia Pacific (excluding China); and
Nu Skin is a $2.92 billion company with primarily skin care products in its line:
From their latest 10Q:
Nu Skin Enterprises, Inc. (the “Company”) is a leading, global direct selling company that develops and distributes premium-quality, innovative personal care products and nutritional supplements that are sold worldwide under the Nu Skin and Pharmanex brands and a small number of other products and services. Over the last five years, the Company has introduced new Pharmanex nutritional supplements and Nu Skin personal care products un der its age LOC anti-aging brand. The Company reports revenue from five geographic regions: Greater China, which consists of Mainland China, Hong Kong, Macau and Taiwan; North Asia, which consists of Japan and South Korea; South Asia/Pacific, which consists of Australia, Brunei, French Polynesia, Indonesia, Malaysia, New Caledonia, New Zealand, the Philippines, Singapore, Thailand and Vietnam; Americas, which consists of the United States, Canada and Latin America; and Europe, Middle East and Africa (“EMEA”), which consists of several markets in Europe as well as Israel, Russia and South Africa (the Company’s subsidiaries operating in these countries are collectively referred to as the “Subsidiaries”).
A Competitive Advantage for Skinvisible and its subsidiary Kintari:
With all of these companies, there is a tremendous market based on the networks that have in place.
Skinvisible is in a unique place to come into this market effectively as a network marketing company. Skinvisible has the products already. The exclusive polymers that make Skinvisible different also give Skinvisible a competitive edge in quality. The Company already has the research and development done. The Company already has some products all over the world used in pharmaceutical and skincare products. The Kintari products come from years of research at skinvisible and success in marketing products through other channels.
We will get more into the exclusive polymer later this week. Speaking of this week…
LATER THIS WEEK:
- The Company’s CEO is very experienced with Network Marketing. Additionally, the Company has made two recent new hires that also have key experience.
- The Polymer we spoke is also coming later this week. You can do some advance reading on that if you like at http://www.invisicare.com.
- The foreign markets. Network marketing is huge even outside of the US. China and all of Asia will surprise you.