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Avon China to operate as wholesaler/retailer under agreement with Chinese government.

This article was originally published in The Rose Sheet

Executive Summary

AVON CHINA TO OPERATE AS WHOLESALER/RETAILER under a new business licensing agreement between Avon and the Chinese government following an April 21 ban on direct selling in the country. Avon announced June 5 that as part of the new model, the company will "operate as a wholesaler to Chinese retail stores," as well as convert its approximately 75 distribution centers into retail outlets to directly serve customers. The firm is working with the Chinese government to iron out details of the new operating plan, which was expected to be operational by June 15. Avon China's management team has been working directly with Chinese officials to resolve the matter.
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