This article was originally published in The Rose Sheet
Chinese government offers verbal permission for Avon to roll out a direct-sell test program in the country, CEO Andrea Jung announces during a Q2 analyst call July 28. Company is awaiting a written agreement, she adds. Avon expects the Chinese government will allow firm to resume direct selling in early 2005. Company currently views China as its largest long-term growth opportunity; sales in the country increased over 60% in Q2, direct-seller reports. In the U.S., Avon sales grew 3% to $545.8 mil., with beauty products up 6%. Worldwide skin care sales grew 18%, and color cosmetics were up 15%, driven by the Beyond Color franchise. Personal care revenue jumped 23% on the strength of hair care and bath products, while fragrance sales were up 12%. Consolidated sales were up 13% to $1.84 bil., and net income soared 35.5% to $232.3 mil...
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Beauty marketer is granted direct selling license from Chinese government, allowing firm to resume its door-to-door sales strategy in the region, according to Avon. Company has sold its products through retailers in China after the government instituted a direct sales ban in 1998, but in 2004 was granted permission to roll out direct-sell test program in select regions (1"The Rose Sheet" Aug. 2, 2004, In Brief). Reflecting China's long term growth potential and strategic importance to the direct-seller, Avon decided to manage the country as a standalone business late last year (2"The Rose Sheet" Dec. 12, 2005, In Brief). Anticipation of approval to resume direct sales in China has triggered a drop in retail orders, contributing to 22% revenue decline in the region in Q4...
Chinese Ministry of Commerce and State Administration for Industry and Commerce approve Avon as first company to test direct selling in Beijing, Tianjin and Guangdong provinces this month, firm announces April 8. Test is a "preparation for a successful implementation" of direct selling legislation currently under development by the government, according to Avon. Firm, which views China as a significant growth opportunity, lobbied the Chinese government to end the direct sales ban, instituted in 1998. Avon received verbal permission last year to roll out a direct-sell test program, and has been awaiting written approval (1"The Rose Sheet" Aug. 2, 2004, In Brief). Other direct sellers looking to enter China include Nu Skin, which plans to expand its presence in the region once the ban is formally lifted...
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