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Avon Products China Entry

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Executive Summary – Avon Products Avon Products is one of the major players in the cosmetics and toiletries industry with a sale of about 10 billion US dollars in 2007 (Exhibits 1, 2 & 3). It has been globally competitive by creating global brands and nurturing its powerful sales channel of Single-level Marketing (Direct Selling). Globally, Avon competes with large cosmetics majors like P&G, Revlon and Shiseido to sell its products. At the same time, it also competes with other major direct sellers like Amway, Mary Kay and Tupperware to attract its sales force. Avon has primarily grown by accessing new geographies and emerging economies such as Poland, Hungary, Yugoslavia and China where disposable incomes are rising and women seek an opportunity to earn extra income. In the 1990s, Avon was the first direct seller to enter China. Other cosmetics players in the Chinese market faced problems with an under-developed infrastructure and had to rely on Government owned distribution ...

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