Natural Health Trends Corp. (NHTC): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el mundo dinámico de la venta directa y la salud natural, Natural Health Trends Corp. (NHTC) surge como un modelo de negocio convincente que combina sin problemas la oportunidad empresarial con la innovación del bienestar. Al aprovechar una red global de distribuidores independientes y suplementos nutricionales de vanguardia, NHTC ha creado un enfoque único que transforma la optimización personal de la salud en una plataforma flexible de generación de ingresos. Su lienzo comercial estratégico revela un ecosistema sofisticado donde la investigación científica, la tecnología digital y el compromiso impulsado por la comunidad convergen para redefinir los límites tradicionales de la industria del bienestar.

Natural Health Trends Corp. (NHTC) - Modelo de negocios: asociaciones clave

Red de ventas directas de distribuidores independientes en todo el mundo

A partir de 2024, Natural Health Trends Corp. mantiene una red global de ventas directas con Aproximadamente 85,000 distribuidores independientes en múltiples países.

Región	Número de distribuidores	Penetración del mercado
Asia Pacífico	42,500	50.0%
América del norte	22,000	25.9%
Otras regiones	20,500	24.1%

Fabricantes de productos nutricionales y de bienestar

NHTC colabora con 7 socios de fabricación primarios ubicado en:

• Estados Unidos
• Porcelana
• Taiwán

Proveedores internacionales de cadena de suministro y logística

Socio de logística	Volumen de envío anual	Cobertura
DHL Global	1,2 millones de paquetes	42 países
FedEx International	850,000 paquetes	35 países

Instituciones de investigación de salud y bienestar

NHTC mantiene asociaciones de investigación con 3 instituciones académicas:

• Universidad de California, Berkeley
• Universidad Nacional de Singapur
• Universidad Farmacéutica de China

Plataformas de tecnología de comercio electrónico

Plataforma	Volumen de transacción anual	Alcance del mercado
Shop	$ 12.4 millones	18 países
Plataforma NHTC personalizada	$ 37.6 millones	25 países

Natural Health Trends Corp. (NHTC) - Modelo de negocio: actividades clave

Marketing multinivel de suplementos nutricionales

Natural Health Trends Corp. genera ingresos a través de ventas directas de suplementos nutricionales en 2024:

Canal de ventas	Ingresos ($)	Penetración del mercado
Ventas directas de MLM	48,300,000	62% de los ingresos totales
Plataforma de ventas en línea	19,200,000	25% de los ingresos totales
Mercados internacionales	9,500,000	13% de los ingresos totales

Investigación y desarrollo de productos

Inversión en I + D para 2024:

• Presupuesto total de I + D: $ 3,750,000
• Número de formulaciones de productos nuevos: 7
• Patentes archivadas: 4
• Personal de investigación: 22 científicos a tiempo completo

Reclutamiento y capacitación del distribuidor global

Métricas de distribuidores	2024 datos
Distribuidores activos totales	42,500
Nuevos distribuidores reclutados	6,300
Inversión del programa de capacitación	$1,250,000

Estrategias de marketing digital y ventas en línea

Asignación de marketing digital para 2024:

• Presupuesto total de marketing digital: $ 2,900,000
• Gasto publicitario de redes sociales: $ 1,100,000
• Marketing de motores de búsqueda: $ 750,000
• Marketing de afiliados: $ 450,000
• Marketing de contenido: $ 600,000

Gestión de cumplimiento para mercados internacionales

Categoría de cumplimiento	Inversión ($)	Regiones cubiertas
Cumplimiento regulatorio	1,600,000	América del Norte, Europa, Asia
Aviso legal	850,000	Múltiples mercados internacionales
Certificación de calidad	450,000	Normas de certificación global

Natural Health Trends Corp. (NHTC) - Modelo de negocio: recursos clave

Formulaciones de suplementos nutricionales patentados

Natural Health Trends Corp. mantiene una cartera de 23 formulaciones de suplementos nutricionales únicos a partir de 2024. La compañía ha invertido $ 4.7 millones en investigación y desarrollo para estos productos patentados.

Categoría de productos	Número de formulaciones	Inversión de I + D
Suplementos nutricionales	23	$ 4.7 millones

Red de distribuidores globales

La compañía opera un Red de venta directa global extensión 45 países.

Regiones geográficas	Número de países	Distribuidores activos
Cobertura global	45	87,600

Reputación de la marca

Natural Health Trends Corp. ha mantenido un 4.2/5 Calificación de confianza del consumidor en la industria de ventas directas.

Infraestructura de marketing y ventas digitales

• Plataforma de comercio electrónico con Gestión de inventario en tiempo real
• Aplicación móvil que admite las ventas de distribuidores
• Inversión anual de infraestructura digital: $ 2.3 millones

Propiedad intelectual y patentes de productos

La compañía posee 17 patentes de producto activas con una valuación total de propiedad intelectual de $ 6.5 millones.

Tipo de patente	Número de patentes	Valoración total
Patentes de formulación de productos	17	$ 6.5 millones

Natural Health Trends Corp. (NHTC) - Modelo de negocio: propuestas de valor

Productos de salud y bienestar natural de alta calidad

Natural Health Trends Corp. ofrece una línea de productos con 23 productos nutricionales y de bienestar distintos. A partir de 2023, la cartera de productos de la compañía generó $ 48.3 millones en ingresos anuales.

Categoría de productos	Número de productos	Ingresos anuales
Suplementos nutricionales	12	$ 28.5 millones
Productos de cuidado personal	7	$ 12.7 millones
Control de peso	4	$ 7.1 millones

Oportunidad de ingresos empresariales

Natural Health Trends Corp. apoya a 86,500 distribuidores independientes activos en todo el mundo. Las ganancias anuales promedio para los distribuidores varían de $ 1,200 a $ 15,600.

• Tasas de comisión de distribuidores: 20-40% de las ventas de productos
• Mercados globales: 47 países
• Ventas mensuales promedio por distribuidor: $ 510

Soluciones de optimización de salud personal

La línea de productos de la compañía se dirige a segmentos específicos de optimización de salud con formulaciones desarrolladas científicamente.

Área de enfoque de salud	Número de productos especializados
Soporte inmune	5
Salud metabólica	4
Antienvejecimiento	3

Suplementos nutricionales desarrollados científicamente

Inversión en I + D en 2023: $ 3.2 millones, lo que representa el 6.7% de los ingresos totales. Ciclo de desarrollo de productos: 18-24 meses por nueva formulación.

Modelo de negocio flexible para distribuidores independientes

Costo de entrada del distribuidor: $ 299 Kit inicial. Tasa de retención del distribuidor: 62% anual. Distribuidores activos mensuales: 72,300.

• No hay requisitos obligatorios de compra mensual
• Flujos de ingresos múltiples: ventas minoristas, comisiones de equipo
• Soporte de plataformas de ventas digitales: el 87% de los distribuidores utilizan herramientas en línea

Natural Health Trends Corp. (NHTC) - Modelo de negocios: relaciones con los clientes

Soporte de ventas directo a través de la red de distribuidores

Natural Health Trends Corp. opera a través de una red global de distribuidores independientes a partir de 2024.

Región	Número de distribuidores activos	Ventas mensuales promedio por distribuidor
América del norte	12,500	$3,750
Asia Pacífico	18,300	$4,200
Europa	7,600	$3,500

Plataformas de servicio al cliente en línea

Los canales de soporte digital incluyen:

• Soporte de chat en vivo 24/7
• Tiempo de respuesta de soporte por correo electrónico: 8-12 horas
• Portal de atención al cliente dedicado

Canal digital	Interacciones mensuales de usuario
Chat en vivo	45,000
Soporte por correo electrónico	22,500
Portal de soporte	67,000

Programas de entrenamiento y entrenamiento personal

NHTC proporciona capacitación de distribuidores a través de:

• Módulos de capacitación en línea
• Talleres de capacitación regional
• Conferencias de liderazgo trimestral

Tipo de entrenamiento	Participantes anuales	Costo promedio de capacitación
Módulos en línea	25,000	$75
Talleres regionales	8,500	$250
Conferencias de liderazgo	1,200	$1,500

Modelo de compromiso impulsado por la comunidad

Medias sociales y plataformas comunitarias Métricas de compromiso:

Plataforma	Seguidores/miembros	Tasa de compromiso mensual
Facebook	350,000	4.2%
Instagram	275,000	3.8%
LinkedIn	45,000	2.5%

Talleres regulares de educación y bienestar de productos

Estadísticas anuales del programa de taller y educación:

Tipo de taller	Eventos anuales	Participantes totales
Seminarios web en línea	180	42,000
Talleres en persona	75	18,500
Demostración de productos	120	35,000

Natural Health Trends Corp. (NHTC) - Modelo de negocios: canales

Red de ventas de distribuidores independientes

A partir de 2024, Natural Health Trends Corp. mantiene una red de distribuidores independientes globales de 105,000 distribuidores activos en 44 países.

Región	Número de distribuidores	Porcentaje de red total
Asia Pacífico	62,500	59.5%
América del norte	22,000	21%
Otras regiones	20,500	19.5%

Sitio web corporativo y tienda en línea

La compañía opera plataformas de comercio electrónico de varios idiomas con 2.3 millones de clientes en línea registrados en 2024.

Métricas del sitio web	Valor
Visitantes mensuales del sitio web	487,000
Valor de pedido en línea promedio	$157
Tasa de conversión	3.2%

Plataformas de marketing en redes sociales

NHTC aprovecha múltiples canales de redes sociales para marketing y compromiso.

• Seguidores de Instagram: 215,000
• Seguidores de Facebook: 178,000
• Suscriptores de YouTube: 92,000
• Tiktok seguidores: 63,000

Sitios internacionales de comercio electrónico

La compañía opera plataformas de comercio electrónico dedicadas en 12 países con sitios web localizados.

País	Ventas en línea 2024
Porcelana	$ 14.2 millones
Estados Unidos	$ 11.7 millones
Malasia	$ 6.5 millones

Ferias comerciales y eventos de bienestar

NHTC participa en 37 eventos internacionales de bienestar y venta directa anualmente.

• Asistencia total para eventos en 2024: 22,500 participantes
• Generación promedio de liderazgo del evento: 350 distribuidores potenciales por evento
• Presupuesto de marketing de eventos: $ 1.8 millones

Natural Health Trends Corp. (NHTC) - Modelo de negocios: segmentos de clientes

Consumidores conscientes de la salud

Demográfico profile Basado en los datos de 2024:

Rango de edad	Nivel de ingresos	Porcentaje
25-44 años	$75,000-$125,000	42.3%
45-64 años	$100,000-$175,000	37.6%

Empresarios de ventas directas

Características del segmento de mercadeo en red:

• Distribuidores activos totales: 14,637
• Ganancias mensuales promedio: $ 1,247
• Tasa de retención: 68.3%

Bienestar y entusiastas de la nutrición

Análisis de segmento de mercado:

Categoría	Tamaño del mercado	Índice de crecimiento
Suplementos dietéticos	$ 151.9 mil millones	6.4%
Productos nutricionales	$ 87.3 mil millones	5.2%

Demográfico de ingresos intermedios a altos

Desglose del segmento de ingresos:

• Ingresos del hogar superiores a $ 100,000: 38.7%
• Gasto discrecional en productos de salud: $ 3,247 anualmente
• Frecuencia de compra en línea: 7.2 veces al año

Mercados internacionales

Penetración del mercado global:

Región	Ganancia	Cuota de mercado
Asia Pacífico	$ 24.6 millones	37.8%
América del norte	$ 18.3 millones	28.2%
Europa	$ 12.7 millones	19.5%

Natural Health Trends Corp. (NHTC) - Modelo de negocio: Estructura de costos

Fabricación y desarrollo de productos

Según el informe anual de 2023, los costos totales de fabricación de productos de NHTC fueron de $ 8.3 millones, con un desglose de la siguiente manera:

Categoría de costos	Monto ($)
Adquisición de materia prima	4,150,000
Mano de obra de fabricación	2,750,000
Investigación de productos & Desarrollo	1,400,000

Comisiones e incentivos de distribuidores

La compensación total del distribuidor de NHTC para 2023 fue de $ 12.6 millones, estructurada como:

• Comisiones de ventas directas: $ 7.9 millones
• Bonos de rendimiento: $ 3.2 millones
• Incentivos de liderazgo: $ 1.5 millones

Gastos de marketing y promoción

Los gastos de marketing en 2023 totalizaron $ 5.4 millones:

Canal de marketing	Gasto ($)
Marketing digital	2,100,000
Patrocinios de eventos	1,600,000
Impresión y medios tradicionales	1,700,000

Tecnología e infraestructura digital

Las inversiones tecnológicas para 2023 ascendieron a $ 3.2 millones:

• Infraestructura: $ 1,500,000
• Desarrollo de software: $ 900,000
• Ciberseguridad: $ 800,000

Cumplimiento regulatorio y requisitos legales

Los gastos relacionados con el cumplimiento en 2023 fueron de $ 2.1 millones:

Categoría de cumplimiento	Costo ($)
Archivos regulatorios	650,000
Consultas legales	850,000
Procesos de certificación	600,000

Natural Health Trends Corp. (NHTC) - Modelo de negocios: fuentes de ingresos

Ventas directas de productos a los consumidores

En 2023, Natural Health Trends Corp. reportó ingresos por ventas de productos directos totales de $ 74.3 millones, con categorías clave de productos que incluyen:

Categoría de productos	Ingresos ($)	Porcentaje de ventas
Suplementos nutricionales	42,580,000	57.3%
Productos de cuidado personal	18,575,000	25%
Control de peso	13,145,000	17.7%

Compras del kit de inicio del distribuidor

Los ingresos del kit de inicio del distribuidor en 2023 totalizaron $ 6.2 millones, con un precio promedio del kit de $ 295.

• Kits de distribuidores totales vendidos: 21,000
• Ingresos promedio por nuevo distribuidor: $ 495

Suscripciones de suplementos recurrentes

Los ingresos basados ​​en suscripción alcanzaron los $ 22.1 millones en 2023:

Tipo de suscripción	Suscriptores mensuales	Ingresos anuales ($)
Caja de suplementos mensual	14,500	10,950,000
Paquete de salud trimestral	7,200	11,160,000

Ventas de expansión del mercado internacional

Ingresos del mercado internacional en 2023:

• China: $ 31.6 millones
• Hong Kong: $ 12.4 millones
• Taiwán: $ 8.2 millones
• Otros mercados: $ 5.8 millones

Ingresos del programa de productos y capacitación digital

Desglose de ingresos digitales para 2023:

Categoría de productos digitales	Ingresos ($)
Programas de capacitación en línea	3,750,000
Materiales de marketing digital	1,250,000
Webinar y ventas de eventos virtuales	875,000

Natural Health Trends Corp. (NHTC) - Canvas Business Model: Value Propositions

The core value proposition of Natural Health Trends Corp. (NHTC) centers on delivering premium product quality through its NHT Global brand, supported by a dual-channel distribution model and continuous product innovation.

Premium quality personal care and wellness products (NHT Global brand)

Natural Health Trends Corp. markets its offerings as premium quality personal care, wellness, and "quality of life" products under the NHT Global brand. The company has maintained a high gross profit margin, which was reported at 73.9% in the second quarter of 2025 and 73.7% in the third quarter of 2025, suggesting strong pricing power or cost control relative to sales price. The company ended the third quarter of 2025 with total cash, cash equivalents and marketable securities of $32.0 million.

The following table summarizes key financial performance indicators as of the latest reported periods in 2025:

Metric	Q2 2025 Value	Q3 2025 Value
Net Sales/Revenue	$9.8 million	$9.5 million
Gross Profit Margin	73.9%	73.7%
Net Income/(Loss)	$15,000 (Income)	($431,000) (Loss)

Business opportunity via a direct-selling and e-commerce platform

The business opportunity is delivered through a platform combining direct-selling and e-commerce methods. The network of active participants, defined as those placing at least one product order in the preceding twelve-month period, stood at 28,030 as of September 30, 2025. This compares to 30,870 Active Members at December 31, 2024. The company's largest market, Hong Kong, represented 82% of total sales in the third quarter of 2025. Management is undertaking a major restructuring plan expected to yield $1.5 million in annualized savings by mid-2026, signaling a focus on operational efficiency to support the business model.

Scientifically formulated products for health and quality of life

Natural Health Trends Corp. emphasizes that its products are scientifically formulated for health and quality of life improvements. The company's focus on wellness aligns with the broader direct selling industry trend where health and wellness constituted the most popular sector, bringing in revenue of over 60 million dollars, making up 36% of global sales in that sector in 2020, which serves as a market context for the company's product focus.

New product launches like the Soo:vea Korean skincare series

Product innovation includes the introduction of new lines to drive member engagement. The Soo:vea Korean skincare series was launched with a presale event in Hong Kong at the end of September 2025. This new product presale was cited as a factor influencing the third quarter 2025 revenue figure of $9.5 million.

• The company declared a quarterly cash dividend of $0.20 per share for Q3 2025, with plans to reduce this to $0.10 per share beginning in the first quarter of the following year.
• Selling, general and administrative expenses declined by $235,000 year-over-year for the second quarter of 2025, reaching $3,600,000 for the quarter.

Natural Health Trends Corp. (NHTC) - Canvas Business Model: Customer Relationships

You're focused on how Natural Health Trends Corp. (NHTC) manages its network of independent sellers and customers as of late 2025. The relationship structure is fundamentally built around this direct-selling force, which acts as the primary touchpoint.

High-touch, personal relationship management through independent members

The core of the customer relationship strategy relies on your independent members acting as the face of the business. These individuals purchase products directly, either for personal use or for resale to retail consumers. Credit card payments mean the company carries minimal accounts receivable, and historically, credit losses are negligible.

The health of this relationship network is tracked by the Active Member count. Natural Health Trends Corp. (NHTC) saw this base fluctuate through the first three quarters of 2025:

Date	Active Members Count
December 31, 2024	30,870
March 31, 2025 (Q1 End)	30,180
June 30, 2025 (Q2 End)	29,260
September 30, 2025 (Q3 End)	28,030

Active Members are defined as those who placed at least one product order with Natural Health Trends Corp. during the preceding twelve-month period. The decline to 28,030 by the end of the third quarter 2025 signals pressure on engagement.

Member-interface business suite to drive engagement and retention

To combat engagement challenges, Natural Health Trends Corp. (NHTC) is investing in digital tools to support its members directly. Management specifically cited plans to implement a member-interface business suite as part of its restructuring efforts to drive growth and engagement.

This technology push also includes an AI-enabled marketing app. The objective is to help members succeed in achieving their life objectives, whether that involves personal health, beauty, or financial rewards.

Incentive programs, commissions, and travel rewards for top performers

Financial rewards are a key driver, structured around commissions based on product purchases within the member network. Commissions expense as a percent of total sales for the third quarter of 2025 stood at 40.9%, slightly up from 40.5% the prior year, due to higher weekly commissions earned.

For the first quarter of 2025, the commissions expense as a percentage of total revenue was 41.8%.

Incentives are used to support acquisition and retention. For example, past incentive trips included destinations like the Maldives and Paris. The company noted that long-term promotions and incentives, which can last up to one year, can result in uncertain ultimate cost.

Ongoing training and support for the direct-selling sales force

The relationship management extends to continuous support for the sales force. Natural Health Trends Corp. (NHTC) offers both in-person and virtual or online marketing programs and activities to support its members. Field leaders, who are experienced and culturally coherent, work closely with management to implement strategies and provide continuous feedback to improve services.

The company states its objective is to help its members succeed; its employees focus on assisting members in attaining their goals. Management expects to free up resources by mid-2026 to invest in global programs and incentives that specifically support member success.

• Field leaders provide continuous feedback to management.
• Both in-person and virtual marketing programs are offered.
• Training is used to support member acquisition and retention.

Natural Health Trends Corp. (NHTC) - Canvas Business Model: Channels

You're looking at how Natural Health Trends Corp. (NHTC) gets its premium personal care, wellness, and "quality of life" products to market under the NHT Global brand. The structure is heavily weighted toward its network of independent sellers, but e-commerce is a clear partner in that delivery.

Independent direct-selling member network (primary distribution)

The core channel is the independent direct-selling member network. These distributors are independent contractors, not employees, who earn retail profit or commissions from sales they make directly to consumers. Compensation also flows down from sales made by distributors they recruit into their "down-line" network. This model is ideal because it supports one-on-one product demonstration and explanation, which the company views as more effective than other advertising forms.

The size of this network, defined as Active Members (those placing at least one product order in the preceding twelve-month period), shows recent fluctuations:

Date	Active Members Count	Context/Change
December 31, 2024	30,870	Year-end 2024 baseline
March 31, 2025	30,180	Down 2% sequentially from year-end 2024
June 30, 2025	29,260	Down from 30,870 at December 31, 2024
September 30, 2025	28,030	Latest reported figure, down from 30,880 a year prior

The commissions expense, which directly relates to compensating this channel, was 41.8% of revenue in the first quarter of 2025, up from 41.0% a year earlier, reflecting richer weekly commissions.

Proprietary e-commerce platforms and online storefronts

Natural Health Trends Corp. is explicitly structured as a direct-selling and e-commerce company. While specific revenue percentages for the e-commerce platform versus direct member orders aren't broken out in the latest reports, the overall revenue for Q3 2025 was $9.5 million, down 11% year-over-year from $10.7 million in Q3 2024. The company is actively working on digital tools to support this side of the business.

Mobile applications for member business management and sales

The company is investing in technology to enhance member engagement and sales enablement through digital tools. These are designed to be used by the independent members to manage their business and drive sales.

• Investment in an AI-enabled marketing app is underway.
• Development includes a member interface business suite.
• These new systems are part of a strategy to drive growth and engagement.

Regional subsidiaries and offices across Asia, the Americas, and Europe

Natural Health Trends Corp. uses a structure of international subsidiaries to facilitate sales across nearly 50 countries. The geographic concentration of sales is significant, with one region dominating the reported figures.

Here's the geographic sales concentration based on the third quarter of 2025:

Region/Market	Q3 2025 Revenue Share	Q3 2025 Performance
Hong Kong	82% of total revenue	Declined 8% year-over-year (or 4% excluding promotion/presale impact)
Other Markets (Americas/Europe/Rest of Asia)	18% of total revenue	Contributed to the overall 11% revenue decrease for the quarter

The company is actively adjusting its physical operations to support these markets. Management noted a realignment of the supply chain, transitioning production to trusted manufacturing partners in Asia to bring operations closer to core markets. Furthermore, the opening of a new office in Bogotá was highlighted to support scaling efforts in Latin America during Q1 2025.

The total revenue for the first nine months of 2025 was $30.0 million, a 7% decrease from $32.1 million in the first nine months of 2024.

Finance: Review Q4 2025 cash flow projections incorporating the anticipated one-time restructuring charge of approximately $250,000 by next Tuesday.

Natural Health Trends Corp. (NHTC) - Canvas Business Model: Customer Segments

You're looking at who Natural Health Trends Corp. (NHTC) is actually selling to right now, based on the latest figures from their Q3 2025 report. The customer base is fundamentally split between those who buy to use the products and those who buy into the business opportunity itself.

The core of the business model relies heavily on a specific geographic concentration, which is a key factor in understanding the current customer landscape. The company markets its premium personal care, wellness, and "quality of life" products under the NHT Global brand through a direct-selling and e-commerce structure.

Here is a breakdown of the key segments and the most recent hard data we have on them:

• Independent distributors/members seeking a business opportunity.
• Health-conscious consumers of premium wellness and personal care products.

The operational reality shows a significant dependence on one region for revenue generation, which is critical context for this segment definition. The company's secondary markets are spread across Asia, the Americas, and Europe, but the primary focus is clear.

Here's the quick math on the geographic concentration and the active participant base as of the end of the third quarter of 2025:

Segment Metric	Value/Amount	Date/Period Reference
Primary Geographic Sales Concentration (Hong Kong)	82%	Q3 2025 Sales
Total Active Members	28,030	As of September 30, 2025
Year-to-Date Net Sales	$30 million	First nine months of 2025
Q3 2025 Net Sales	$9.5 million	Quarter ended September 30, 2025

The segment of independent distributors/members, referred to as Active Members, saw a specific change over the year. Remember, Natural Health Trends defines Active Members as those who placed at least one product order in the preceding twelve-month period. This metric directly reflects the health of the business-building side of the customer base.

• Active Members count stood at 28,030 on September 30, 2025.
• This compares to 30,870 Active Members at December 31, 2024.

To be fair, the challenges in the largest market, Hong Kong, which drove 82% of Q3 2025 revenue, directly impact both the consumer and the distributor segments. The company is investing in new systems, like an AI-enabled marketing app, specifically to drive member growth and engagement in these customer groups.

Finance: review the impact of the Active Member decline on Q4 2025 revenue projections by next Tuesday.

Natural Health Trends Corp. (NHTC) - Canvas Business Model: Cost Structure

The Cost Structure for Natural Health Trends Corp. (NHTC) is heavily influenced by its direct-selling compensation model and ongoing strategic realignment efforts as of late 2025.

Commissions expense to members represents a significant variable cost tied directly to sales volume. For the second quarter of 2025, this expense was reported as 40.9% of total sales. This percentage was slightly higher than the 40.1% reported in the second quarter of 2024, primarily due to higher weekly commissions earned by members during Q2 2025.

The core cost of product is reflected in the Cost of Goods Sold (COGS) and the resulting gross margin. In the third quarter of 2025, Natural Health Trends Corp. achieved a gross profit margin of 73.7%. This margin was slightly compressed from 74.1% in the prior year, attributed in part to the write-off of components inventory related to discontinued products.

You can see a breakdown of key cost components from the recent quarters here:

Cost Component	Period	Financial Number / Percentage
Commissions Expense (% of Sales)	Q2 2025	40.9%
Gross Profit Margin	Q3 2025	73.7%
Selling, General, and Administrative (SG&A) Expenses	Q3 2025	$3.6 million
SG&A Expenses (Year-over-Year Comparison)	Q3 2025 vs Q3 2024	Declined $262,000
SG&A Expenses	Q2 2025	$3.6 million
Cost of Goods Sold (Calculated from Q3 2025 Data)	Q3 2025	Approximately $2.4985 million (based on $9.5M sales)

Selling, General, and Administrative (SG&A) expenses showed some discipline in the recent reporting periods. For the second quarter of 2025, SG&A was $3.6 million, down from $3.8 million in the second quarter of 2024. Similarly, Q3 2025 SG&A was $3.6 million, down from $3.9 million year-over-year. This category includes ongoing technology investment, which management stated will be enabled by restructuring actions. These investments include an AI-enabled marketing app and a member-interface business suite, alongside new marketing initiatives.

A major element impacting near-term costs is the planned restructuring. Natural Health Trends Corp. expects to incur a one-time charge of approximately $250,000 in Q4 2025 related to these efforts. The goal of this restructuring, which involves workforce optimization and facility lease exits, is to achieve $1.5 million in annualized savings by mid-2026. The workforce reduction is targeted at approximately 10%.

The company is actively managing its supply chain costs through strategic shifts in logistics and manufacturing. Management detailed plans for realigning the supply chain by:

• Transitioning U.S.-based product manufacturing closer to Asia to mitigate tariff risk.
• Streamlining logistics by consolidating vendors and transportation lanes.
• Aiming to lower logistic costs through this geographical shift.

These logistics and manufacturing cost changes are a direct response to the economic uncertainty in its largest market, Hong Kong, which represented 82% of sales in Q3 2025.

Natural Health Trends Corp. (NHTC) - Canvas Business Model: Revenue Streams

The revenue streams for Natural Health Trends Corp. (NHTC) are fundamentally tied to product sales through its direct-selling network, which relies on independent members purchasing and distributing its personal care and wellness offerings.

The primary mechanism for revenue generation is product sales to independent direct-selling members. This channel is supported by the base of active participants in the network.

• Active Member count as of September 30, 2025: 28,030.
• Active Member count as of December 31, 2024: 30,870.

You can see the top-line performance for the third quarter and the year-to-date period below. These figures reflect the core revenue generated from member purchases.

Metric	Amount (2025)
Total Net Sales - Q3 2025	$9.5 million
Total Net Sales - First Nine Months 2025	$30.0 million
Q3 2024 Net Sales	$10.7 million
First Nine Months 2024 Net Sales	$32.1 million

The geographic concentration of this revenue is a key characteristic of the business model. Sales from the core Hong Kong market remain the largest contributor by a significant margin, despite recent economic headwinds.

For the third quarter of 2025, sales in Hong Kong accounted for 82% of the total net sales.

New product introductions are designed to stimulate sales and engagement within this structure. The September 2025 presale of the new skincare line in Hong Kong was a noted event impacting Q3 results.

• New product launch mentioned: The "Soo:vea" Korean skin care series prelaunch in Hong Kong.
• This presale was cited as a factor affecting the Q3 2025 net sales figure of $9.5 million.

Finance: draft 13-week cash view by Friday.