Avon China Recruitment Still Healthy

Avon Products Inc. added more than 33,000 representatives to sell its cosmetics in China last month. As of June 30, Avon had recruited more than 114,000 licensed sales promoters since it received a license to resume direct selling in China in March. According to Morgan Stanley analyst Bill Pecoriello, Avon added 33,339 representatives in August after adding 39,944 in July, bringing the total number of representatives to 188,273. Avon, the world’s largest direct seller of cosmetics, has more than 5 million representatives selling its products worldwide, rather than having them sold in stores. But China closed the door on direct sales in 1998 in a ban mainly aimed at domestic pyramid schemes, which forced Avon to sell its products there through beauty boutiques. Avon was the first direct sales company to get approval to resume direct selling in China after the government rescinded the controversial ban.