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Cosmetic Changes in China

December 4, 2007

CHINA: After arriving in the Chinese market last year, Oriflame, Europe’s largest cosmetic direct sales company, says it is now trying to apply for direct selling licenses in more provinces. It got its first direct selling license from the Ministry of Commerce last September and was allowed to start operations in Nanjing, Wuxi and Suzhou in Jiangsu Province. Now Oriflame is applying for licenses in Guangdong and Sichuan provinces, according to the company.

Most direct selling companies are applying for more regional licenses, but none has succeeded yet, except Nu Skin, which got a license in developing direct sales in 18 districts and counties in the Beijing area after it was allowed in Shanghai at the beginning of 2007.
Arriving in China just a year ago, Oriflame is a latecomer compared with Avon, which came to China in 1990, and Nu Skin, which started its retail business on the mainland in 2003.

Investing over $35 million in China, Oriflame built a 44,000-square-meter plant in Jiangsu’s Kunshan. It produces skin care products, cosmetics, personal care products and perfume.

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