Avon calling…in China
Direct selling trial for cosmetics company
The Chinese government has given cosmetics giant Avon the go-ahead to trial its direct sales offer in China.
The move marks a chance of policy for China, which had banned all direct selling as part of a crackdown designed to stop pyramid selling schemes. Legislation relaxing the law is expected to follow if the trial is successful.
The Chinese Ministry of Commerce and the State Administration for Industry and Commerce has officially approved Avon Products (China) to test direct selling in Beijing, Tianjin, and Guangdong Province from this month.
Andrea Jung, CEO of Avon Products said: “We are so excited that we have received the formal approval from the Chinese government. We are extremely honored of this opportunity as it equally shows the government’s confidence and trust in Avon as a responsible and reliable direct selling company in China.
“We will do our part and are committed to deliver the objective and expectation of the government and look forward to direct selling regulation.”
SK Kao, president of Avon China, said: “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 known as ‘Chuan-xiao’. We will keep doing what is right and responsible.
“The direct selling test is a preparation for a successful implementation of the direct selling legislation. Avon will strictly abide by the direct selling law and regulation when they are issued.”
