Herbalife and Its Interesting Projections for 2019

Herbalife has seen remarkable growth over the years. The brand has expanded globally into unchartered waters not to mention the spread of its portfolio. Conservative figures indicate a 67% growth in 2018. This contradicts the general industry decline by 0.1%. Herbalife has successfully remained relevant and contends for the top spot with other industry heavyweights.

Herbalife took an unprecedented step of expanding its range of products. While the name may give the impression of a niche business model; the company has successfully ventured into sports nutrition, weight management, and targeted nutrition. It is this diversity that caters for the distinct tastes and preferences of the customer base. This expansion has seen an increase in volume sales. The sales can be attributed in the rapid growth in the just-completed year. Coupled by improved additional flavors to the traditional Herbalife brands, the customer has been spoiled for choice. In the 51 countries that Herbalife has a presence has seen the introduction of 58 new brands. The move takes into consideration the difference in culture and consumer habits in various countries.

Herbalife equally, has made a deliberate effort to ensure its sales model of direct selling remains a primary source sales volume. Direct selling offers the company insight into consumer sentiment. Perhaps it can be safely assumed that certain tailor-made new products come against this backdrop.

There is always a nexus between a company’s performance and its stock price. So relevant is this, that the surge in Herbalife Nutrition stocks can be attributed to its sterling performance regarding units pushed best management practice, innovation of new products, and expansion into new frontiers. These serve to boost investor confidence and market value of a company. For both long-term and short-term investors, the stock automatically becomes attractive due to the projected gains. The success of the new product lines serves as a reminder of the potential of the products after customers become more aware of them.

Figures indicate that the majority of Herbalife sales happen in the top 10 nations of the globe. Considering this, new products and rapid expansion, one can safely extrapolate the boom that is soon to follow when the new markets fully embrace Herbalife products. However, it doesn’t dispute the fact that there is still room for volume sales, more innovation and much success in the years that follow.

Reference:

https://www.bloomberg.com/quote/HLF:US

 

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