Nu Skin China plans to fly 14,500 employees to Dubai for a corporate jaunt costing “hundreds of millions of dollars” – just two weeks after Chinese authorities hit the company with a fine of more than US$500,000.
Embarking on the largest corporate holiday ever held in the UAE, Nu Skin’s beauty product sales stars will pack jumbo jets, hotels and restaurants as they tour the country from Abu Dhabi to Sharjah for 10 days.
In an email, Nu Skin told The National that "Nu Skin Success Trips recognise the hard work and achievements of our sales representatives, and we believe the United Arab Emirates represents a fitting destination for this event given the country's commitment to becoming a world-class tourist destination."
Nu Skin is a direct sales organisation that sells beauty and nutrition products via a large network of recruited sales personnel. Direct selling is highly restricted in China, as is “multi-level marketing”, in which individuals earn revenues from the sales of individuals they have recruited.
The company has faced vocal criticism from state authorities in China. It was described as a "brainwashing cult" and a "suspected illegal pyramid scheme" in a January article published in the state-owned newspaper People's Daily. The state administration for industry and commerce announced the fine last week.
“Nu Skin China was penalised in the amount of US$524,000 for the sale of certain products by individual direct sellers that, while permitted for sale in Nu Skin China’s retail stores, were not registered for the direct selling channel,” the company said of the fine. Six unnamed Nu Skin employees were also fined more than $200,000.
“Voluntary measures we have taken in Mainland China in response to recent media scrutiny and subsequent government reviews of our operations and the activities of our sales force in Mainland China will have a negative impact on our business in that market,” Nu Skin wrote in its annual financial report, which was submitted to the US Securities and Exchange Commission.
Private suits against Nu Skin have been lodged in courts in Utah, where the parent company is headquartered.
“We have been named as a defendant in five purported class action complaints [in US courts] relating to the recent negative media and regulatory scrutiny of our business in Mainland China,” Nu Skin said.
One of these suits claims that Nu Skin “purportedly operat[ed] a pyramid scheme based on illegal multi-level marketing activities” in China.
Nu Skin denies the allegations.
The UAE trip should come as a much-needed morale boost.
Describing the practice of flying thousands of its employees abroad on corporate holidays, Nu Skin said in a corporate filing: “In addition to rewarding performance, incentive trips provide … a high level of motivation and team building among sales leaders.”
Seventy-seven flights and 39 hotels in Dubai and Abu Dhabi will be needed to accommodate the salespeople, who have booked out Ferrari World for three days, and will enjoy two 8,000-person dinners at Yas Marina Circuit. Nu Skin has also booked two full Emirates charter flights. The company’s employees will arrive on Sunday and depart on April 16.
The 10-day trip includes visits to Sharjah, Burj Khalifa, Sheikh Zayed Grand Mosque, Dubai Meydan City and the Sharjah Islamic Museum. The party will stay at hotels including the Yas Viceroy, the Shangri-La Dubai, the Westin Abu Dhabi and the Sheraton Mall of the Emirates, according to Arabian Adventures, which helped to organise the trip.
Yas Viceroy Abu Dhabi is booked out by guests from Nu Skin between April 9 and 13, and the Westin Abu Dhabi is full April 10-13.
Last year, Nu Skin recorded revenues of $3.17 billion, of which $1bn was generated in Mainland China. The Chinese market is also rapidly growing for the company – it recorded revenues of $256.8 million in 2012, meaning that its revenues there increased by 292 per cent in 2013.
Nu Skin China is a wholly owned subsidiary of the US company Nu Skin Enterprises, which is listed on the New York Stock Exchange.
The parent company recorded profit of $364.8m in 2013.
Clive Dwyer, director of Yas Island Destination Management, which is helping to organise the trip, said: “A global corporate zooming on one country [is a] major logistical challenge. The company knew about Abu Dhabi because of Ferrari World and the Abu Dhabi Grand Prix.”
He said the cost of the trip would total “hundreds of millions of dollars”.
“The strength of successful events is best marketing [for the UAE as a conference destination] you could possibly do,” he said. “Delegates go home and talk about it.”
A spokeswoman from Arabian Adventures said: “It has been a huge undertaking … it is one of the largest events we have worked on.”
Steen Jakobsen, director of the Dubai Convention and Events Bureau, described the trip as “a wonderful opportunity for us not only to welcome the largest incentives group in [Dubai’s] history, but to showcase the emirate’s capabilities in hosting mega-groups to a global audience.”
Last year, Nu Skin had 61,546 “sales leaders” in Greater China. It described them as “distributors … who are actively recruiting consumers and [new] distributors, and who constitute [Nu Skin’s] sales network.
“Our operations in Mainland China are subject to significant government and media scrutiny and investigations,” the company stated.
“At times, investigations and other regulatory actions have limited our ability to conduct business in certain locations in Mainland China, and have resulted in a few cases where we have paid fines.”
Noting the likelihood of further oversight from the Chinese authorities, Nu Skin stated: “We face a risk that future investigations and other regulatory actions may result in fines, revocation of licences or other more significant sanctions.”
The company admits that, because of its wide range of local recruitment practices, “mistakes may be made as to how those working in Mainland China should promote the business [locally].”
It also said: “We currently plan to continue to expand our store count in Mainland China.”
abouyamourn@thenational.ae
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Read more from Johann Chacko
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
More from our neighbourhood series:
RESULT
Bayern Munich 3 Chelsea 2
Bayern: Rafinha (6'), Muller (12', 27')
Chelsea: Alonso (45' 3), Batshuayi (85')
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
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Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.
NBA Finals results
Game 1: Warriors 124, Cavaliers 114
Game 2: Warriors 122, Cavaliers 103
Game 3: Cavaliers 102, Warriors 110
Game 4: In Cleveland, Sunday (Monday morning UAE)
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
'My Son'
Director: Christian Carion
Starring: James McAvoy, Claire Foy, Tom Cullen, Gary Lewis
Rating: 2/5
Armies of Sand
By Kenneth Pollack (Oxford University Press)
The%20Woman%20King%20
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
AndhaDhun
Director: Sriram Raghavan
Producer: Matchbox Pictures, Viacom18
Cast: Ayushmann Khurrana, Tabu, Radhika Apte, Anil Dhawan
Rating: 3.5/5
AVOID SCAMMERS: TIPS FROM EMIRATES NBD
1. Never respond to e-mails, calls or messages asking for account, card or internet banking details
2. Never store a card PIN (personal identification number) in your mobile or in your wallet
3. Ensure online shopping websites are secure and verified before providing card details
4. Change passwords periodically as a precautionary measure
5. Never share authentication data such as passwords, card PINs and OTPs (one-time passwords) with third parties
6. Track bank notifications regarding transaction discrepancies
7. Report lost or stolen debit and credit cards immediately
FIGHT%20CARD
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Book%20Details
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AS%20WE%20EXIST
%3Cp%3EAuthor%3A%20Kaoutar%20Harchi%C2%A0%3C%2Fp%3E%0A%3Cp%3EPublisher%3A%20Other%20Press%3C%2Fp%3E%0A%3Cp%3EPages%3A%20176%3C%2Fp%3E%0A%3Cp%3EAvailable%3A%20Now%3C%2Fp%3E%0A
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Wenger's Arsenal reign in numbers
1,228 - games at the helm, ahead of Sunday's Premier League fixture against West Ham United.
704 - wins to date as Arsenal manager.
3 - Premier League title wins, the last during an unbeaten Invincibles campaign of 2003/04.
1,549 - goals scored in Premier League matches by Wenger's teams.
10 - major trophies won.
473 - Premier League victories.
7 - FA Cup triumphs, with three of those having come the last four seasons.
151 - Premier League losses.
21 - full seasons in charge.
49 - games unbeaten in the Premier League from May 2003 to October 2004.
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
