FT.com / Investing in China - Avon called to take part in a trial
FT.com / Investing in China - Avon called to take part in a trial
On April 13 1998, Chinese government officials fanned out around the country, closing down branches of some of the world’s biggest direct sales companies. Among the groups to have their doors closed that day was Avon.
Seven years later, Avon’s China strategy has once again changed to meet Beijing’s demands. In April, the government chose the group to conduct a trial of new regulations for the direct sales industry. While the trial undoubtedly gives Avon a head start on its competitors, the cosmetics group’s experience illustrates how challenging complying with Chinese regulations can be for foreign investors.
On April 13 1998, Chinese government officials fanned out around the country, closing down branches of some of the world’s biggest direct sales companies. Among the groups to have their doors closed that day was Avon.
Seven years later, Avon’s China strategy has once again changed to meet Beijing’s demands. In April, the government chose the group to conduct a trial of new regulations for the direct sales industry. While the trial undoubtedly gives Avon a head start on its competitors, the cosmetics group’s experience illustrates how challenging complying with Chinese regulations can be for foreign investors.
posted by the MLM News Desk at
4:37 AM
