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Feb27
China clears Avon to resume direct sales

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With the recent authorization by China for Avon to resume their direct sales operations, it could signal a huge door to open up for other direct marketing companies. 

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With a flood of pyramid schemes running throughout the country, China banned all direct selling in 1998. 

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Under a limited territory consisting of Beijing , Tianjin and Guandong, the Chinese government allowed Avon to resume direct selling last year.

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Now, according to Andrew Yeh, “final approval was granted to Avon last week to receive a formal license, although a company representative said on Monday that the company had yet to receive any official notice from regulators.”

While the has been lobbying for to move quicker to open up its direct selling sector, the Chinese government has had concerns that if direct sellers operated too freely throughout the country there would be a growth of dishonest sales schemes. 

Most of the companies who have direct sales as their strategies have been forced to rely upon storefronts for sales since 1998.

In December, Beijing put guidelines into effect that would provide standards for those wanting to operate in the country. 

Of course this is a huge potential direct selling market as many Asians prefer the direct selling method over many others.

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