Herbalife recently obtained three new direct selling licenses in China, giving the nutrition company the green light to expand operations in the country.
Due to strict regulations on direct selling activities, China’s Ministry of Commerce grants permits on a province-by-province basis, following a review of the applicant’s existing operations in the country. Herbalife is now licensed to do business in the provinces of Gansu, Ningxia and Inner Mongolia, which have a combined population of 57 million.
The company has 300,000 service providers in China and licenses to operate in 25 other provinces. In the first half of 2016, Herbalife logged revenue of $459.9 million in China, making it the company’s second largest region behind North America.
“Our business continues to expand as more consumers see Herbalife as a trusted, convenient and accessible nutrition brand,” Herbalife’s Senior Vice President and Manager of China Operations, Jerry Li, said in a statement.
In July, Herbalife opened a new manufacturing facility in Nanjing, the capital of Jiangsu province, to meet growing demand in China. The 372,000-square-foot factory doubles Herbalife’s production capacity in the country to 60 million units annually.