Herbalife Nutrition is relatively unique in the weight management industry, and it’s not just due to the products and support that it offers its clients. What makes it stand out is that, in contrast to the vast majority of its competitors in 2018, the wellness companies stocks surged 68.7% throughout the year; for comparison, the overall industry saw a decline of 0.1%. The vast majority of this increase can be due to Herbalife Nutrition’s improved volumes in a few key markets; it’s also had a few other significant drivers behind their gains. At the moment, the only major factor that may worry investors in the company is the continually fluctuating currencies and their related impacts.
The companies stock gains over 2018 have been some of the biggest the company has seen this decade; in fact, the third and fourth quarters saw the biggest increase in stock prices since 2012. On top of this, the company has seen growth in the double-digits in volumes for four out of five of its key markets. This is the second consecutive time that the company has seen such growth, and Herbalife Nutrition looks to keep seeing these kinds of returns well into 2019. At a minimum, this growth won’t slow down by much if at all over the next few quarters. A lot of this growth can also be a result of its direct-selling strategy, which has proven to be effective over the past few decades.
Herbalife Nutrition Market Growth 2019
On top of these strategies, Herbalife Nutrition has a few other advantages over its competition that may help to fuel its overall growth well into 2019 and beyond. Chief among these is the fact that it’s now one of the most recognizable brands in the world; even people who aren’t too interested in weight loss management have heard of the company and its products. In fact, it’s consistently listed as one of the top 10 direct selling companies in the world by Direct Selling News. A lot of this branding power is because of the companies extensive history in the industry, being set up over 40 years ago. Not only has this put the company at the head of the industry, but it keeps Herbalife Nutrition safe from a lot of competition.
Another key factor in Herbalife Nutrition’s ongoing gains is the flexibility that’s offered to the companies independent distributors. Not only does the company offer them an extreme amount of flexibility in their hours, but they’ve offered extensive support for each of their distributors. Because of that, the majority of Herbalife Nutrition distributors have been able to work smart about how, when and where they sell the companies high-quality products. Because of that, it looks as though many of these distributors have been incredibly effective when it comes to driving key metrics in the company in the past, and it shows no signs of slowing down.
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