General presentation of Herbalife :
The Herbalife group specialises in the production and marketing of food products for slimming diets, but also natural products aimed at adopting a healthy lifestyle. We can consider four main activities including weight management, targeted nutrition, energy management and fitness.
Launched in the Cayman Islands, Herbalife markets its products all over the world and has been generating a constantly growing turnover for the last few years.
The Herbalife share price is currently listed on the New York Stock Exchange in the United States. It also includes the calculation of the NYSE index.
Over the last ten years, stock market charts have shown a clear increase in the price of this share, despite a slight downward retracement between 2008 and 2009, and another between May and December 2012.
Advantages and strong points of the Herbalife share as a stock market asset :
First of all, the Herbalife group has become a brand name known and recognised as a quality brand all over the world. It owes this excellent reputation in the eyes of the general public to the quality of its products but also to their usefulness. It should also be noted that the group offers a wide range of products whose interest is first measured by experts during in-depth scientific analyses and by studies on consumer purchasing habits.
Herbalife can also rely on a strategic distribution network that enables it to achieve significant sales and on a very well-functioning marketing strategy that has proven itself over many years.
Finally, Herbalife is also a company with an international outlook as it is present in many countries around the world. It thus protects itself from risks related to a single geographical sector.
Disadvantages and weak points of the Herbalife share as a stock market asset :
Among the biggest negative points that can be highlighted about the Herbalife company is the increased mistrust of consumers with regard to the possible side effects of treatments and medicines composed of plant extracts, especially with regard to health and weight loss. It goes without saying that Herbalife's sales suffer from this mistrust. It will probably take a few years before consumers become truly comfortable with this type of natural product.
The Herbalife brand, although enjoying an excellent image in many countries, remains less well known and therefore less popular in certain regions, which prevents it from establishing itself on a long-term basis. Therefore, the group still has some efforts to make to boost its international development.