Avon China Confirms Recruitment Licensed Sales Promoters

Avon Products (China) Co., Ltd. today said that as of June 30, 2006, it has recruited more than 114,000 licensed Sales Promoters, and that more than 31,000 additional applicants are in various stages of the certification process, just four months after the company was awarded the first direct-selling license. “We are very pleased with the roll-out of our new business model,” said SK Kao, General Manager, Avon China. “The high numbers of licensed Sales Promoters in such a short time reflects the great appeal of the Avon earnings opportunity in the Chinese market, enhancing our confidence in the future of our business in China. We also are very pleased that nearly 90% of our Beauty Boutiques have qualified to act as Service Centers under the government’s regulations, indicating that our Beauty Boutique owners want to be involved in direct selling,” he added. Under the new model, the Beauty Boutiques now offer after-sales services (order pick-ups, product returns, credits, product trials, billing assistance, etc.) to Sales Promoters, and beauty consultation services to consumers, while continuing to sell products at retail. Mr. Kao added, “Avon’s direct-selling model brings the best features of retail and single-level direct-selling together, and as we continue to comply fully with the government regulations for direct selling, we believe this partnership will enable Avon to serve more and more women throughout China with our high-quality beauty products.”