Avon Calls on China

April 12, 2005
Avon has won the Chinese government's approval to sell its cosmetics, nutritional supplements, skin creams and other proeducts directly to consumers on a trial basis.

Avon • Avon Faces Class Action Suits • Avon Calls on China • Consumer Complaints

Beijing previously banned the practice of selling to customers outside stores but late last week, the Chinese Ministry of Commerce and the State Administration for Industry and Commerce granted approval for the trial, which will be limited to Beijing, Tianjin and Guangdong province.

"The objective of the test is to help the government find a suitable direct-selling model that would fit the needs of the Chinese consumers, promote social stability and help protect consumers against illegal practices," said SK Kao, president of Avon China, in a statement.

It's not yet clear whether Avon representatives will be allowed to enter consumers' homes.

The Chinese market for beauty, health and hygiene products is exploding as the nation's economy begins moving into high gear. Meanwhile, armies of would-be Chinese sales executives, entrepreneurs and independent contractors are eagerly awaiting the opportunity to begin hawking merchandise.

When China was admitted to the World Trade Organization in late 2001, it was required to commit to easing restrictions on direct sales.

Avon already has stand-alone stores in China -- more than 6,300 "beauty boutiques" and more than a thousand counters at department stores.

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