Natural Health Trends Corp. (NHTC): Business Model Canvas [Jan-2025 Mis à jour]

Dans le monde dynamique de la vente directe et de la santé naturelle, Natural Health Trends Corp. (NHTC) apparaît comme un modèle commercial convaincant qui mélange de manière transparente les opportunités entrepreneuriales avec l'innovation du bien-être. En tirant parti d'un réseau mondial de distributeurs indépendants et de suppléments nutritionnels de pointe, NHTC a conçu une approche unique qui transforme l'optimisation de la santé personnelle en une plate-forme flexible et générateurs de revenus. Leur toile d'activité stratégique révèle un écosystème sophistiqué où la recherche scientifique, la technologie numérique et l'engagement axé sur la communauté convergent pour redéfinir les limites traditionnelles de l'industrie du bien-être.

Natural Health Trends Corp. (NHTC) - Modèle commercial: Partenariats clés

Réseau de vente directe de distributeurs indépendants dans le monde entier

Depuis 2024, Natural Health Trends Corp. maintient un réseau de vente directe mondial avec Environ 85 000 distributeurs indépendants dans plusieurs pays.

Région	Nombre de distributeurs	Pénétration du marché
Asie-Pacifique	42,500	50.0%
Amérique du Nord	22,000	25.9%
Autres régions	20,500	24.1%

Fabricants de produits nutritionnels et de bien-être

NHTC collabore avec 7 partenaires de fabrication primaires Situé dans:

• États-Unis
• Chine
• Taïwan

Provideurs internationaux de chaîne d'approvisionnement et de logistique

Partenaire de logistique	Volume annuel d'expédition	Couverture
DHL Global	1,2 million de packages	42 pays
FedEx International	850 000 packages	35 pays

Institutions de recherche sur la santé et le bien-être

NHTC entretient des partenariats de recherche avec 3 établissements universitaires:

• Université de Californie, Berkeley
• Université nationale de Singapour
• Université pharmaceutique de Chine

Plateformes technologiques de commerce électronique

Plate-forme	Volume de transaction annuel	Portée du marché
Faire du shoprif	12,4 millions de dollars	18 pays
Plateforme NHTC personnalisée	37,6 millions de dollars	25 pays

Natural Health Trends Corp. (NHTC) - Modèle d'entreprise: Activités clés

Marketing à plusieurs niveaux de suppléments nutritionnels

Natural Health Trends Corp. génère des revenus grâce à des ventes directes de suppléments nutritionnels en 2024:

Canal de vente	Revenus ($)	Pénétration du marché
Ventes directes MLM	48,300,000	62% des revenus totaux
Plateforme de vente en ligne	19,200,000	25% des revenus totaux
Marchés internationaux	9,500,000	13% des revenus totaux

Recherche et développement de produits

Investissement dans la R&D pour 2024:

• Budget total de R&D: 3 750 000 $
• Nombre de nouveaux formulations de produits: 7
• Brevets déposés: 4
• Personnel de recherche: 22 scientifiques à temps plein

Recrutement et formation des distributeurs mondiaux

Métriques des distributeurs	2024 données
Distributeurs actifs totaux	42,500
Nouveaux distributeurs recrutés	6,300
Investissement du programme de formation	$1,250,000

Marketing numérique et stratégies de vente en ligne

Attribution du marketing numérique pour 2024:

• Budget total du marketing numérique: 2 900 000 $
• Dépenses publicitaires sur les réseaux sociaux: 1 100 000 $
• Marketing des moteurs de recherche: 750 000 $
• Marketing d'affiliation: 450 000 $
• Marketing de contenu: 600 000 $

Gestion de la conformité pour les marchés internationaux

Catégorie de conformité	Investissement ($)	Régions couvertes
Conformité réglementaire	1,600,000	Amérique du Nord, Europe, Asie
Avis juridique	850,000	Plusieurs marchés internationaux
Certification de qualité	450,000	Normes de certification mondiales

Natural Health Trends Corp. (NHTC) - Modèle d'entreprise: Ressources clés

Formulations de supplément nutritionnelles propriétaires

Natural Health Trends Corp. maintient un portefeuille de 23 formulations de supplément nutritionnelles uniques En 2024. La société a investi 4,7 millions de dollars en recherche et développement pour ces produits propriétaires.

Catégorie de produits	Nombre de formulations	Investissement en R&D
Suppléments nutritionnels	23	4,7 millions de dollars

Réseau de distributeurs mondiaux

L'entreprise exploite un réseau de vente directe mondiale étendue 45 pays.

Régions géographiques	Nombre de pays	Distributeurs actifs
Couverture mondiale	45	87,600

Réputation de la marque

Natural Health Trends Corp. a maintenu un 4.2/5 Consumer Trust Rating dans l'industrie de la vente directe.

Infrastructure de vente numérique et marketing

• Plate-forme de commerce électronique avec Gestion des stocks en temps réel
• Application mobile Soutenir les ventes de distributeurs
• Investissement annuel sur les infrastructures numériques: 2,3 millions de dollars

Propriété intellectuelle et brevets de produits

L'entreprise détient 17 brevets de produit actifs avec une évaluation totale de la propriété intellectuelle de 6,5 millions de dollars.

Type de brevet	Nombre de brevets	Évaluation totale
Brevets de formulation de produit	17	6,5 millions de dollars

Natural Health Trends Corp. (NHTC) - Modèle d'entreprise: propositions de valeur

Produits de santé et de bien-être naturels de haute qualité

Natural Health Trends Corp. propose une gamme de produits avec 23 produits nutritionnels et bien-être distincts. En 2023, le portefeuille de produits de la société a généré 48,3 millions de dollars de revenus annuels.

Catégorie de produits	Nombre de produits	Revenus annuels
Suppléments nutritionnels	12	28,5 millions de dollars
Produits de soins personnels	7	12,7 millions de dollars
Gestion du poids	4	7,1 millions de dollars

Opportunité de revenu entrepreneurial

Natural Health Trends Corp. soutient 86 500 distributeurs indépendants actifs dans le monde. Les bénéfices annuels moyens pour les distributeurs varient de 1 200 $ à 15 600 $.

• Taux de commission des distributeurs: 20 à 40% des ventes de produits
• Marchés mondiaux: 47 pays
• Ventes mensuelles moyennes par distributeur: 510 $

Solutions d'optimisation de la santé personnelle

La gamme de produits de l'entreprise cible des segments d'optimisation de la santé spécifiques avec des formulations scientifiquement développées.

Domaine de l'information sur la santé	Nombre de produits spécialisés
Soutien immunitaire	5
Santé métabolique	4
Anti-âge	3

Suppléments nutritionnels développés scientifiquement

Investissement en R&D en 2023: 3,2 millions de dollars, ce qui représente 6,7% des revenus totaux. Cycle de développement des produits: 18-24 mois par nouvelle formulation.

Modèle commercial flexible pour les distributeurs indépendants

Coût d'entrée du distributeur: 299 $ Kit initial. Taux de rétention des distributeurs: 62% par an. Distributeurs actifs mensuels: 72 300.

• Aucune exigence d'achat mensuelle obligatoire
• Multipliers de revenus: ventes au détail, commissions d'équipe
• Support des plates-formes de vente numérique: 87% des distributeurs utilisent des outils en ligne

Natural Health Trends Corp. (NHTC) - Modèle d'entreprise: Relations clients

Assistance des ventes directes via le réseau de distribution

Natural Health Trends Corp. opère via un réseau mondial de distributeurs indépendants à partir de 2024.

Région	Nombre de distributeurs actifs	Ventes mensuelles moyennes par distributeur
Amérique du Nord	12,500	$3,750
Asie-Pacifique	18,300	$4,200
Europe	7,600	$3,500

Plateformes de service client en ligne

Les canaux de support numériques comprennent:

• Support de chat en direct 24/7
• Temps de réponse de l'assistance par e-mail: 8-12 heures
• Portail de support client dédié

Canal numérique	Interactions mensuelles utilisateur
Chat en direct	45,000
Assistance par e-mail	22,500
Portail de support	67,000

Programmes de coaching et de formation personnels

NHTC offre une formation sur les distributeurs:

• Modules de formation en ligne
• Ateliers de formation régionale
• Conférences de leadership trimestrielles

Type de formation	Participants annuels	Coût de formation moyen
Modules en ligne	25,000	$75
Ateliers régionaux	8,500	$250
Conférences de leadership	1,200	$1,500

Modèle d'engagement axé sur la communauté

Médias sur les réseaux sociaux et les plateformes communautaires Métriques de l'engagement:

Plate-forme	Abonnés / membres	Taux d'engagement mensuel
Facebook	350,000	4.2%
Instagram	275,000	3.8%
Liendin	45,000	2.5%

Ateliers réguliers de l'éducation et du bien-être des produits

Statistiques annuelles du programme d'atelier et d'éducation:

Type d'atelier	Événements annuels	Total des participants
Webinaires en ligne	180	42,000
Ateliers en personne	75	18,500
Démonstration de produits	120	35,000

Natural Health Trends Corp. (NHTC) - Modèle d'entreprise: canaux

Réseau de vente de distributeurs indépendants

En 2024, Natural Health Trends Corp. maintient un réseau mondial de distributeurs indépendants de 105 000 distributeurs actifs dans 44 pays.

Région	Nombre de distributeurs	Pourcentage du réseau total
Asie-Pacifique	62,500	59.5%
Amérique du Nord	22,000	21%
Autres régions	20,500	19.5%

Site Web d'entreprise et boutique en ligne

La société exploite des plateformes de commerce électronique multicangue avec 2,3 millions de clients en ligne enregistrés en 2024.

Métriques du site Web	Valeur
Visiteurs mensuels du site Web	487,000
Valeur de commande en ligne moyenne	$157
Taux de conversion	3.2%

Plateformes de marketing des médias sociaux

La NHTC exploite plusieurs réseaux sociaux pour le marketing et l'engagement.

• Followers Instagram: 215 000
• Fonds Facebook: 178 000
• Abonnés YouTube: 92 000
• TIKTOK APIRES: 63 000

Sites internationaux de commerce électronique

La société exploite des plateformes de commerce électronique dédiées dans 12 pays avec des sites Web localisés.

Pays	Ventes en ligne 2024
Chine	14,2 millions de dollars
États-Unis	11,7 millions de dollars
Malaisie	6,5 millions de dollars

Salons professionnels et événements de bien-être

La NHTC participe à 37 événements internationaux de bien-être et de vente directe chaque année.

• Total des événements en 2024: 22 500 participants
• Génération de leads d'événement moyen: 350 distributeurs potentiels par événement
• Budget marketing des événements: 1,8 million de dollars

Natural Health Trends Corp. (NHTC) - Modèle d'entreprise: segments de clients

Consommateurs soucieux de leur santé

Démographique profile Basé sur 2024 données:

Tranche d'âge	Niveau de revenu	Pourcentage
25-44 ans	$75,000-$125,000	42.3%
45 à 64 ans	$100,000-$175,000	37.6%

Entrepreneurs de vente directe

Caractéristiques du segment de marketing de réseau:

• Distributeurs actifs totaux: 14 637
• Générations mensuelles moyennes: 1 247 $
• Taux de rétention: 68,3%

Antariens de bien-être et de nutrition

Analyse du segment de marché:

Catégorie	Taille du marché	Taux de croissance
Suppléments alimentaires	151,9 milliards de dollars	6.4%
Produits nutritionnels	87,3 milliards de dollars	5.2%

Démographique à revenu moyen à supérieur

Répartition du segment des revenus:

• Revenu des ménages supérieur à 100 000 $: 38,7%
• Dépenses discrétionnaires en produits de santé: 3 247 $ par an
• Fréquence d'achat en ligne: 7,2 fois par an

Marchés internationaux

Pénétration mondiale du marché:

Région	Revenu	Part de marché
Asie-Pacifique	24,6 millions de dollars	37.8%
Amérique du Nord	18,3 millions de dollars	28.2%
Europe	12,7 millions de dollars	19.5%

Natural Health Trends Corp. (NHTC) - Modèle d'entreprise: Structure des coûts

Fabrication et développement de produits

Selon le rapport annuel de 2023, les coûts totaux de fabrication des produits de la NHTC étaient de 8,3 millions de dollars, avec une ventilation comme suit:

Catégorie de coûts	Montant ($)
Achat de matières premières	4,150,000
Travail de fabrication	2,750,000
Recherche de produits & Développement	1,400,000

Commissions et incitations des distributeurs

La rémunération totale des distributeurs de la NHTC pour 2023 était de 12,6 millions de dollars, structurée:

• Commissions de ventes directes: 7,9 millions de dollars
• Bonus de performance: 3,2 millions de dollars
• Incitations au leadership: 1,5 million de dollars

Dépenses marketing et promotionnelles

Les dépenses de marketing en 2023 ont totalisé 5,4 millions de dollars:

Canal de marketing	Dépenses ($)
Marketing numérique	2,100,000
Commandites d'événements	1,600,000
Impression et médias traditionnels	1,700,000

Technologie et infrastructure numérique

Les investissements technologiques pour 2023 s'élevaient à 3,2 millions de dollars:

• Infrastructure informatique: 1 500 000 $
• Développement de logiciels: 900 000 $
• Cybersécurité: 800 000 $

Conformité réglementaire et exigences légales

Les dépenses liées à la conformité en 2023 étaient de 2,1 millions de dollars:

Catégorie de conformité	Coût ($)
Dépôts réglementaires	650,000
Consultations juridiques	850,000
Processus de certification	600,000

Natural Health Trends Corp. (NHTC) - Modèle d'entreprise: Strots de revenus

Ventes de produits directs aux consommateurs

En 2023, Natural Health Trends Corp. a déclaré un chiffre d'affaires total de ventes de produits directs de 74,3 millions de dollars, avec des catégories de produits clés, notamment:

Catégorie de produits	Revenus ($)	Pourcentage de ventes
Suppléments nutritionnels	42,580,000	57.3%
Produits de soins personnels	18,575,000	25%
Gestion du poids	13,145,000	17.7%

Achats du kit de démarrage du distributeur

Les revenus du kit de démarrage du distributeur en 2023 ont totalisé 6,2 millions de dollars, avec un prix moyen du kit de 295 $.

• Kits totaux de distribution vendus: 21 000
• Revenu moyen par nouveau distributeur: 495 $

Suppléments récurrents

Les revenus basés sur l'abonnement ont atteint 22,1 millions de dollars en 2023:

Type d'abonnement	Abonnés mensuels	Revenus annuels ($)
Boîte de supplément mensuelle	14,500	10,950,000
Package de santé trimestriel	7,200	11,160,000

Ventes d'expansion du marché international

Revenus du marché international en 2023:

• Chine: 31,6 millions de dollars
• Hong Kong: 12,4 millions de dollars
• Taïwan: 8,2 millions de dollars
• Autres marchés: 5,8 millions de dollars

Revenus du programme de produits numériques et de formation

Répartition des revenus numériques pour 2023:

Catégorie de produits numériques	Revenus ($)
Programmes de formation en ligne	3,750,000
Matériel de marketing numérique	1,250,000
Ventes d'événements webinaires et virtuels	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.