Avon campaign repositions company in China

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BEIJING -- Avon China Inc. has expand its advertising and promotional activities since the government forced companies to stop selling directly to consumers and to open retail outlets, Bill Pryor, chairman of Avon China Inc, told Business Weekly. Avon is the first company to restart its operations in Guangzhou, capital of South China's Guangdong province, after receiving a new operating license.

Avon lost $36,200 daily during the past two months when the U.S. cosmetic and beauty company had to close all its operations nationwide because of the Chinese government's decision to ban all companies' direct selling activities starting from April 21.

Avon's previous dealers have two options. They can obtain a retail license and purchase products from Avon at a wholesale price, or they can be given preferred customer status and make purchases for personal consumption from Avon at a discount retail price.

Copyright July 1998, Crain Communications Inc.

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