Referring to Paula Luo’s blog post on Nu skin, it is a company that sells health care products, cosmetics products and dietary products. According to the news reported on Ecns.com, “As for Nu Skin Enterprises, a United States-based direct-selling company, its revenue in Greater China amounted to $269.1 million in the second quarter of 2013, up 35 percent compared with the same period last year”(Esc.cn 2013).

The significant reason behind the huge market share pulling from China was because Nu skin had realized the consumer behaviors of people were changing. In the rising economic society, people are more sensitive about their appearances. Particularly, young girls are willing to spend more money on cosmetics products and dietary products that as long as can help them to keep fit and stay young. With the save-after-spend consumer lifestyle, young people who want to lose weight believe that without having to do a lot of exercises why don’t we paying a little bit more money for the same effect. In the other aspect, people desire to earn easy money without having to do a lot of work. Nu skin employees their sales by saying they offer a flexible work and a high salary for young people who have zero experience but desire to earn money. The sales manager organizes several SPA parties at private houses in different area to invite young people to middle-aged woman which are their main targeting segments to join the party for free and to try out Nu skin’s products like SPA machine by applying the reciprocity principle. More and more people get attracted by the products themselves and by the opportunity to earn money. Therefore, they join the team of Nu skin and keep passionately promoting their products to their friends and even to their friends of friends by using social media, which results in the forming of the huge pyramid scheme works.

Reference:

http://www.ecns.cn/business/2013/10-03/83056.shtml

https://blogs.ubc.ca/paulaluo/2013/10/09/nu-skin-enterprises-targeting-direct-consumers/