Case Details
Case
Future of Avon China: Direct Sales, Retail Sales or Both
On 9 April 2005, the leading global direct-sales cosmetics company, Avon, gained exclusive rights from the Chinese government to test the direct-selling model in China. This provided Avon a rare opportunity to expand its business, especially given that the demand for cosmetics in China had skyrocketed in the past decades. Since China banned the direct sales model in 1998, Avon had successfully adopted the traditional sales model of boutique and counter stores. Although the direct sales model had worked well for Avon in almost all other markets in the world, the traditional sales model had proved to be very successful in China. How should Avon exploit this opportunity of direct selling in China?
Year of Publication: 2007
Ref. No.: 07/319C
Discipline: Strategy & General Management
Industry: Retail & Wholesale
Country/Region: China (People's Rep. of)
Company: Avon China
Languages: English
Pages of Text: 12
Learning Objective:
Strategic management