Avon Products (China) Co Ltd expanded its direct selling business scope by introducing health care food in China.

A health care products manufacturing facility in Guangzhou will go into production in the first quarter of this year and the first batch of products will hit the market in the coming few months, the world's largest door-to-door cosmetics seller announced in Guangzhou yesterday.

"This strategic investment not only enriches our product categories in China's direct selling channel, but also enables consumers to enjoy Avon's high-quality products and services from all aspects," said Andrea Jung, Chairman of Avon Products.

"It can also make Avon sales promoters be more competitive in the market and bring them more opportunities to earn a profit," Jung said.

The retailer also plans to increase investment in research and development by establishing a R&D center in Shanghai to tailor high-quality products for Chinese consumers.

"Strengthening our local R&D force means we can develop new products based on the specific requirements of the Chinese market," said S. K. Kao, president of Avon China.

As the first among its rivals to be licensed for direct sales on the Chinese mainland, Avon now has 74 branches and 622,148 sales promoters across the country. Its products cover skin care, hair care, makeup, fragrances and nutritional supplements.

The mainland in 2005 lifted a seven-year ban on door-to-door sales as part of its commitment to the World Trade Organization. The practice was banned in 1998 to stop rampant fraud from pyramid sales schemes.

A dozen overseas-funded direct-sales retailers including Avon, Amway (China) Co Ltd and Mary Kay (China) have been granted licenses for door-to-door operations.

(Shanghai Daily January 10, 2008)