China's government has authorised Avon Products, the world's largest door-to-door cosmetics distributor, to resume direct sales operations, a move likely to pave the way for other well-known direct sellers to do business in the country.
Since Beijing banned direct selling in 1998 after a rash of pyramid schemes, Avon had relied on thousands of retail outlets throughout the mainland to sell its beauty products.
However, the government last year allowed the New York-based group to resume direct selling in Beijing, Tianjin and Guangdong under a pilot programme.
According to the Ministry of Commerce, final approval was granted to Avon last week to receive a formal licence, although a company representative said yesterday that the company had yet to receive any official notice from regulators.
Beijing's willingness to allow Avon to expand its direct sales network suggests it may start permitting other multinational direct sellers to operate with greater leeway in China, albeit under strict rules.
US trade officials and corporate executives have lobbied Beijing to open its direct selling sector more quickly. - (Financial Times Service)
