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Avon Ladies May Go Door-to-Door in China

November 22, 2005

Avon Products Inc. may soon be sending its representatives door-to-door in China, after having been banned from direct-selling in the country since 1998. The ban was imposed due to fears of fraud and potential abuses of sales representatives.
Avon executives said direct-selling would allow the company to make further inroads into China, which is opening its giant markets after joining the World Trade Organization.
Avon has won approval to run a pilot program selling its products directly to consumers in China. It already sells its products through retail outlets.
“Avon has verbal permission to test direct selling in China,” said an Avon spokesperson based in Guangzhou. “However, to date, we have not received any official document. The government has worked hard in recent years to study the market. I have no reason not to be optimistic.”
China is expected to lift the direct-selling ban and set regulations before Dec. 11 to meet WTO deadlines.

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