Tristen Chau: Got it. And then to say on China seems that consumers are responding more to promotions compared to historical levels. And so does that change how you are thinking about how you have to compete in the region?
Ryan Napierski: Yes, absolutely. I think again, it goes all the way back to the price value and price competitiveness right now for the consumer. In our business promotions are very – we have to be very sensitive in how we apply them because they do tend to disrupt traditional product cycles and such. But when we think about things like November 11 and, and, you know, major events like that promotion is certainly a critical part of our strategy and will continue to be as we manage brand equity through that process. I think for us making certain, we lean on the value proposition per brand is going to be very important. So the more price conscious brands we can be more aggressive on than maybe those that are more premium positioned that, that have a higher level of science, research and development, that sort of thing.
Tristen Chau: Got it. And then last one, have you seen any changes in the growth rates in the parts of the beauty market where you compete?
Ryan Napierski: So yes, that’s a great question. So in terms of like most recent research, when we look at the third quarter, I haven’t seen any direct research yet on categories within beauty and wellness that would point us. What we are reading anecdotally, and I’m speaking more from like the Euro monitor side. I think that’s going to take a little more time to research. What we are seeing though are mass consumer goods like the Procter & Gamble, those sorts playing well, obviously people needing the necessities while luxury is under a bit more pressure from those types of companies. But we still believe in the long tail of the device – beauty device market and the wellness device market that we now plan with WellSpa iO, we believe in the mid- to long-term that deep customer connection and that insights driven approach to personalization is going to be a winning strategy long-term.
So we’re continuing to invest on the devices and the device systems we think are important. We’ll continue to invest in premium, but we are making more and more room for the value consumer in our portfolio as well.
Operator: Thank you. One moment for our next question. And our next question is coming from the line of Doug Lane with Water Tower Research, your line is now open.
Doug Lane: Yes. Hi, good afternoon everybody. Ryan, staying on China here, you continue to sound a cautious tone on the business near term, but can you step back and give us your outlook for maybe three to five years, has there been any change in your longer term impact to that market despite the difficulties there for the last four or five years?
Ryan Napierski: Yes, Doug, by the way, great to have you on the call and connect again. Really appreciate you spending some time with us. Yes, China is interesting. Again, we’ve spent a lot of time, in fact, we were on with the team again last night. China continues, it’s really interesting at the macro because obviously the economies had severe setbacks over the past few years, they are having struggles more immediately with this consumption and even at the consumption push and that decrease that’s happening at the GDP level. But they still have an enormous middle class. They are still in our business specifically, and some of the Xi Jinping’s party talking about economic opportunity in second and third tier cities where Nu Skin today we don’t really operate.
It’s a very small portion of our business outside of those first tier cities in China. So we know that there is a big middle class, we know near term there is pressure, but mid- to long-term that middle class will cons continue to consume goods and we believe there’s expansion potential in second and third tier cities. And so by no means do we write off China, we just think it’s going to be an economic recovery period for time and then we as a company need to be smarter in how we reach those consumers. And this is why we’re investing more and more in our Tencent engagements because clearly that that’s kind of the dominant channel.
