Natural Health Trends Corp. (NHTC): Modelo de negócios Canvas [Jan-2025 Atualizado]

No mundo dinâmico de venda direta e saúde natural, a Natural Health Trends Corp. (NHTC) surge como um modelo de negócios atraente que combina perfeitamente a oportunidade empreendedora com a inovação de bem -estar. Ao alavancar uma rede global de distribuidores independentes e suplementos nutricionais de ponta, o NHTC criou uma abordagem única que transforma a otimização pessoal da saúde em uma plataforma flexível de geração de renda. Sua tela de negócios estratégicos revela um ecossistema sofisticado, onde pesquisas científicas, tecnologia digital e engajamento orientado pela comunidade convergem para redefinir os limites tradicionais da indústria de bem-estar.

Natural Health Trends Corp. (NHTC) - Modelo de negócios: Parcerias -chave

Rede de vendas direta de distribuidores independentes em todo o mundo

A partir de 2024, a Natural Health Trends Corp. mantém uma rede global de vendas diretas com Aproximadamente 85.000 distribuidores independentes em vários países.

Região	Número de distribuidores	Penetração de mercado
Ásia -Pacífico	42,500	50.0%
América do Norte	22,000	25.9%
Outras regiões	20,500	24.1%

Fabricantes de produtos nutricionais e de bem -estar

O NHTC colabora com 7 parceiros de fabricação primária Localizado em:

• Estados Unidos
• China
• Taiwan

Provedores internacionais de cadeia de suprimentos e logística

Parceiro de logística	Volume anual de remessa	Cobertura
DHL Global	1,2 milhão de pacotes	42 países
FedEx International	850.000 pacotes	35 países

Instituições de pesquisa em saúde e bem -estar

NHTC mantém parcerias de pesquisa com 3 instituições acadêmicas:

• Universidade da Califórnia, Berkeley
• Universidade Nacional de Cingapura
• Universidade Farmacêutica da China

Plataformas de tecnologia de comércio eletrônico

Plataforma	Volume anual de transações	Alcance do mercado
Shopify	US $ 12,4 milhões	18 países
Plataforma NHTC personalizada	US $ 37,6 milhões	25 países

Natural Health Trends Corp. (NHTC) - Modelo de negócios: Atividades -chave

Marketing multinível de suplementos nutricionais

A Natural Health Trends Corp. gera receita por meio de vendas diretas de suplementos nutricionais em 2024:

Canal de vendas	Receita ($)	Penetração de mercado
MLM Vendas diretas	48,300,000	62% da receita total
Plataforma de vendas on -line	19,200,000	25% da receita total
Mercados internacionais	9,500,000	13% da receita total

Pesquisa e desenvolvimento de produtos

Investimento em P&D para 2024:

• Orçamento total de P&D: US $ 3.750.000
• Número de novas formulações de produtos: 7
• Patentes arquivadas: 4
• Pessoal de pesquisa: 22 cientistas em tempo integral

Recrutamento e treinamento de distribuidores globais

Métricas de distribuidores	2024 dados
Distribuidores ativos totais	42,500
Novos distribuidores recrutados	6,300
Investimento do programa de treinamento	$1,250,000

Estratégias de marketing digital e vendas on -line

Alocação de marketing digital para 2024:

• Orçamento total de marketing digital: US $ 2.900.000
• Gastes de publicidade em mídia social: US $ 1.100.000
• Marketing de mecanismo de pesquisa: US $ 750.000
• Marketing de afiliados: US $ 450.000
• Marketing de conteúdo: US $ 600.000

Gerenciamento de conformidade para mercados internacionais

Categoria de conformidade	Investimento ($)	Regiões cobertas
Conformidade regulatória	1,600,000	América do Norte, Europa, Ásia
Consultoria jurídica	850,000	Vários mercados internacionais
Certificação de qualidade	450,000	Padrões de certificação global

Natural Health Trends Corp. (NHTC) - Modelo de negócios: Recursos -chave

Formulações de suplementos nutricionais proprietários

Natural Health Trends Corp. mantém um portfólio de 23 Formulações exclusivas de suplementos nutricionais a partir de 2024. A empresa investiu US $ 4,7 milhões em pesquisa e desenvolvimento Para esses produtos proprietários.

Categoria de produto	Número de formulações	Investimento em P&D
Suplementos nutricionais	23	US $ 4,7 milhões

Rede de distribuidores globais

A empresa opera um Rede Global de Vendas Diretas spanning 45 países.

Regiões geográficas	Número de países	Distribuidores ativos
Cobertura global	45	87,600

Reputação da marca

Natural Health Trends Corp. manteve um 4.2/5 Classificação de confiança do consumidor na indústria de vendas diretas.

Infraestrutura de vendas e marketing digital

• Plataforma de comércio eletrônico com Gerenciamento de inventário em tempo real
• Aplicativos móveis Suportando vendas de distribuidores
• Investimento anual de infraestrutura digital: US $ 2,3 milhões

Propriedade intelectual e patentes do produto

A empresa possui 17 patentes de produto ativo com uma avaliação total de propriedade intelectual de US $ 6,5 milhões.

Tipo de patente	Número de patentes	Avaliação total
Patentes de formulação do produto	17	US $ 6,5 milhões

Natural Health Trends Corp. (NHTC) - Modelo de Negócios: Proposições de Valor

Produtos de saúde e bem-estar naturais de alta qualidade

A Natural Health Trends Corp. oferece uma linha de produtos com 23 produtos nutricionais e de bem -estar distintos. Em 2023, o portfólio de produtos da empresa gerou US $ 48,3 milhões em receita anual.

Categoria de produto	Número de produtos	Receita anual
Suplementos nutricionais	12	US $ 28,5 milhões
Produtos de cuidados pessoais	7	US $ 12,7 milhões
Gerenciamento de peso	4	US $ 7,1 milhões

Oportunidade de renda empreendedora

A Natural Health Trends Corp. suporta 86.500 distribuidores independentes ativos em todo o mundo. Os ganhos médios anuais para distribuidores variam de US $ 1.200 a US $ 15.600.

• Taxas de comissão de distribuidores: 20-40% das vendas de produtos
• Mercados globais: 47 países
• Vendas mensais médias por distribuidor: $ 510

Soluções de otimização de saúde pessoal

A linha de produtos da empresa tem como alvo segmentos específicos de otimização de saúde com formulações cientificamente desenvolvidas.

Área de foco em saúde	Número de produtos especializados
Suporte imunológico	5
Saúde metabólica	4
Antienvelhecimento	3

Suplementos nutricionais desenvolvidos cientificamente

Investimento em P&D em 2023: US $ 3,2 milhões, representando 6,7% da receita total. Ciclo de desenvolvimento de produtos: 18-24 meses por nova formulação.

Modelo de negócios flexível para distribuidores independentes

Custo de entrada do distribuidor: Kit inicial de US $ 299. Taxa de retenção do distribuidor: 62% anualmente. Distribuidores ativos mensais: 72.300.

• Nenhum requisito de compra mensal obrigatório
• Vários fluxos de renda: vendas de varejo, comissões de equipe
• Suporte de plataformas de vendas digitais: 87% dos distribuidores usam ferramentas online

Natural Health Trends Corp. (NHTC) - Modelo de Negócios: Relacionamentos do Cliente

Suporte de vendas diretas através da Rede de Distribuidores

A Natural Health Trends Corp. opera através de uma rede global de distribuidores independentes a partir de 2024.

Região	Número de distribuidores ativos	Vendas mensais médias por distribuidor
América do Norte	12,500	$3,750
Ásia -Pacífico	18,300	$4,200
Europa	7,600	$3,500

Plataformas de atendimento ao cliente online

Os canais de suporte digital incluem:

• Suporte de bate -papo ao vivo 24 horas por dia, 7 dias por semana
• Horário de resposta de suporte por e-mail: 8-12 horas
• Portal de suporte ao cliente dedicado

Canal digital	Interações mensais do usuário
Bate -papo ao vivo	45,000
Suporte por e -mail	22,500
Portal de suporte	67,000

Programas de treinamento e treinamento pessoais

O NHTC fornece treinamento de distribuidores através de:

• Módulos de treinamento on -line
• Workshops de treinamento regional
• Conferências trimestrais de liderança

Tipo de treinamento	Participantes anuais	Custo médio de treinamento
Módulos online	25,000	$75
Workshops regionais	8,500	$250
Conferências de liderança	1,200	$1,500

Modelo de engajamento orientado à comunidade

Mídias de mídia social e métricas de engajamento de plataformas comunitárias:

Plataforma	Seguidores/membros	Taxa de engajamento mensal
Facebook	350,000	4.2%
Instagram	275,000	3.8%
LinkedIn	45,000	2.5%

Oficinas regulares de educação e bem -estar de produtos

Estatísticas anuais do Programa de Oficina e Educação:

Tipo de oficina	Eventos anuais	Total de participantes
Webinars online	180	42,000
Workshops pessoais	75	18,500
Demonstração do produto	120	35,000

Natural Health Trends Corp. (NHTC) - Modelo de Negócios: Canais

Rede de vendas de distribuidores independentes

A partir de 2024, a Natural Health Trends Corp. mantém uma rede de distribuidores independentes globais de 105.000 distribuidores ativos em 44 países.

Região	Número de distribuidores	Porcentagem da rede total
Ásia -Pacífico	62,500	59.5%
América do Norte	22,000	21%
Outras regiões	20,500	19.5%

Site corporativo e loja online

A empresa opera plataformas de comércio eletrônico em várias línguas, com 2,3 milhões de clientes on-line registrados em 2024.

Métricas do site	Valor
Visitantes mensais do site	487,000
Valor médio do pedido online	$157
Taxa de conversão	3.2%

Plataformas de marketing de mídia social

O NHTC aproveita vários canais de mídia social para marketing e engajamento.

• Seguidores do Instagram: 215.000
• Seguidores do Facebook: 178.000
• Assinantes do YouTube: 92.000
• TIKTOK seguidores: 63.000

Sites internacionais de comércio eletrônico

A empresa opera plataformas dedicadas de comércio eletrônico em 12 países com sites localizados.

País	Vendas on -line 2024
China	US $ 14,2 milhões
Estados Unidos	US $ 11,7 milhões
Malásia	US $ 6,5 milhões

Feiras e eventos de bem -estar

O NHTC participa de 37 eventos internacionais de bem -estar e venda direta anualmente.

• Participação total no evento em 2024: 22.500 participantes
• Geração média de leads de evento: 350 distribuidores em potencial por evento
• Orçamento de marketing de eventos: US $ 1,8 milhão

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

Consumidores preocupados com a saúde

Demográfico profile Com base em 2024 dados:

Faixa etária	Nível de renda	Percentagem
25-44 anos	$75,000-$125,000	42.3%
45-64 anos	$100,000-$175,000	37.6%

Empreendedores de vendas diretas

Características do segmento de marketing de rede:

• Distribuidores ativos totais: 14.637
• Ganhos mensais médios: US $ 1.247
• Taxa de retenção: 68,3%

Entusiastas de bem -estar e nutrição

Análise do segmento de mercado:

Categoria	Tamanho de mercado	Taxa de crescimento
Suplementos alimentares	US $ 151,9 bilhões	6.4%
Produtos nutricionais	US $ 87,3 bilhões	5.2%

Renda média a superior

Repartição do segmento de renda:

• Renda familiar acima de US $ 100.000: 38,7%
• Gastos discricionários em produtos de saúde: US $ 3.247 anualmente
• Frequência de compra on -line: 7,2 vezes por ano

Mercados internacionais

Penetração no mercado global:

Região	Receita	Quota de mercado
Ásia -Pacífico	US $ 24,6 milhões	37.8%
América do Norte	US $ 18,3 milhões	28.2%
Europa	US $ 12,7 milhões	19.5%

Natural Health Trends Corp. (NHTC) - Modelo de negócios: estrutura de custos

Fabricação e desenvolvimento de produtos

De acordo com o relatório anual de 2023, os custos totais de fabricação de produtos da NHTC foram de US $ 8,3 milhões, com um colapso da seguinte forma:

Categoria de custo	Valor ($)
Aquisição de matéria -prima	4,150,000
Trabalho de fabricação	2,750,000
Pesquisa de produtos & Desenvolvimento	1,400,000

Comissões e incentivos de distribuidores

A compensação total do distribuidor do NHTC em 2023 foi de US $ 12,6 milhões, estruturada como:

• Comissões de vendas diretas: US $ 7,9 milhões
• Bônus de desempenho: US $ 3,2 milhões
• Incentivos de liderança: US $ 1,5 milhão

Despesas de marketing e promocionais

As despesas de marketing em 2023 totalizaram US $ 5,4 milhões:

Canal de marketing	Gastos ($)
Marketing digital	2,100,000
Patrocínio de eventos	1,600,000
Mídia impressa e tradicional	1,700,000

Tecnologia e infraestrutura digital

Os investimentos em tecnologia para 2023 totalizaram US $ 3,2 milhões:

• Infraestrutura de TI: US $ 1.500.000
• Desenvolvimento de software: US $ 900.000
• Segurança Cibernética: US $ 800.000

Conformidade regulatória e requisitos legais

As despesas relacionadas à conformidade em 2023 foram de US $ 2,1 milhões:

Categoria de conformidade	Custo ($)
Registros regulatórios	650,000
Consultas legais	850,000
Processos de certificação	600,000

Natural Health Trends Corp. (NHTC) - Modelo de negócios: fluxos de receita

Vendas diretas de produtos para consumidores

Em 2023, a Natural Health Trends Corp. reportou receita total de vendas de produtos diretos de US $ 74,3 milhões, com as principais categorias de produtos, incluindo:

Categoria de produto	Receita ($)	Porcentagem de vendas
Suplementos nutricionais	42,580,000	57.3%
Produtos de cuidados pessoais	18,575,000	25%
Gerenciamento de peso	13,145,000	17.7%

Compras de kits iniciantes do distribuidor

A receita do kit inicial do distribuidor em 2023 totalizou US $ 6,2 milhões, com um preço médio do kit de US $ 295.

• Kits de distribuidores totais vendidos: 21.000
• Receita média por novo distribuidor: US $ 495

Assinaturas de suplementos recorrentes

A receita baseada em assinatura atingiu US $ 22,1 milhões em 2023:

Tipo de assinatura	Assinantes mensais	Receita anual ($)
Caixa de suplementos mensais	14,500	10,950,000
Pacote trimestral de saúde	7,200	11,160,000

Vendas de expansão do mercado internacional

Receitas de mercado internacional em 2023:

• China: US $ 31,6 milhões
• Hong Kong: US $ 12,4 milhões
• Taiwan: US $ 8,2 milhões
• Outros mercados: US $ 5,8 milhões

Receitas de Produto Digital e Programa de Treinamento

Digital Receita Redução para 2023:

Categoria de produto digital	Receita ($)
Programas de treinamento on -line	3,750,000
Materiais de marketing digital	1,250,000
Vendas de webinar e eventos virtuais	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.