Avon Watches China For Direct-Selling Rule Changes

Avon Products Inc. is watching developments in China closely to see if the government will again allow direct sales. China banned direct sales in the spring of 1998 after the practice, which involves a sales force selling directly to the consumer, was abused.

Avon already has a presence in China, but uses stores to sell its products there now. Early indications are the Chinese government is considering a simplistic form of direct selling, which would be very close to Avon’s model in many countries, according to Avon’s chief financial officer Robert Corti.

Avon’s current presence in the country also gives the company access to production and distribution networks there.