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  • China opens up to direct sales
  • After global direct sales giant Avon received the Chinese governments first ever license for direct selling this February, a second batch of four companies attaind legal status in the Chinese mainland China this Tuesday. Through its official website, the Ministry of Commerce announced that four new direct sellers...
  • 2006-08-09
  • After global direct sales giant Avon received the Chinese governments first ever license for direct selling this February, a second batch of four companies attaind legal status in the Chinese mainland China this Tuesday.

    Through its official website, the Ministry of Commerce announced that four new direct sellers are: US-invested Nu Skin (China) Daily-Use & Health Products, Hong Kong-invested Pro-Health (China) Company, and two domestic enterprises: Zhen-Ao Group and Yilishen Tianxi Group. And sources said another 10 companies from home and abroad would also probably receive licenses within the week.

    Shares in America of Nu Skin, a direct seller of high-end skin care products, jumped by 16.4 percent right after the company received the license. Prior to that, it had traded sluggishly in the past 52 weeks, down about 19 percent since the beginning of the year.

    But another American major direct sales business Amway (China), actually the first such company to bring the business to China, was excluded for the second time. Since losing the first race with Avon in February, Amway had pledged to gain a license as soon as possible.

    Avon has not wasted time extending in China. It has more than 114,000 door-to-door salespeople since acquiring the first official license. Gao Shoukang, president of Avon China, said that by the end of June of this year another 31,000 applicants were undergoing appraisals for the positions.

    The warm response from the employment market signifiesgreat market potential for Avons products in China. Ninety percent of Avons 5,700 outlets in China are servicing direct salespeople, Gao saidUnder Chinas regulation, all certificated direct sales agents should have their personal and sales records registered on the website of the Ministry of Commerce for public search.

    Under China's regulations, all certificated direct sales agents should have their personal and slaes records registered on the website of the Ministry of Commerce for public search.

    Source: Beijing Today

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