Global direct selling giant Avon Products Inc. has said that the company has been awarded China's first official license to sell door-to-door.

Andrea Jung, Avon CEO said that Avon shoulders a great responsibility as the first company allowed to do direct sales in China adding that Avon will abide by Chinese laws and regulations.

Avon became the first international direct selling company to enter China in 1990. With its production center based in this capital of south China's Guangdong Province, Avon has opened a broad retail distribution network with 6,300 independent beauty boutiques and over 1,000 cosmetic parlors in department stores across China.

China's new regulations governing direct sales went into effect on Dec. 1, 2005. Direct sales companies must meet and adhere to four requirements. Avon was said to be the first to match the requirements, which demand companies have a record of law-abiding, direct sales experience in foreign countries, registered capital of no less than 80 million yuan in China and a company information disclosure mechanism.

Avon had received permission from the Chinese government to run pilot door-to-door selling campaign in the cities of Beijing and Tianjin and Guangdong Province on April 8, 2005.

Avon CEO Andrea Jung said that while maintaining steady sales in Avon's retail outlets, the company has enrolled 3,000 saleswomen for direct sales training. This is on top of the company's current work force of 2,000 employees in China.

Avon's direct saleswomen are required to train and earn Avon's certificate on direct sales.

It is required by law every direct sales agent should registered with the Chinese Ministry of Commerce and the State Administration of Industry and Commerce.

Statistics with the China Association of Fragrance Flavour & Cosmetic Industries showed that China's cosmetic market is now valued at 85 billion yuan, and is growing at more than 10 percent annually.

The country's direct sales market prospect has been the allure of international cosmetics and health products companies since 1990s. Avon forecast that its direct sales business in China will soon exceed its turnover in Japan and become the company's biggest market in Asia.

Gao Shoukang, president of Avon China said that the company's fledgling direct sales business will not negatively effect its retail business which it plans to continue.

Source: Xinhua