Recent Analysis of five-year transition Avon.doc

 PAGE \* MERGEFORMAT 7 Recent Analysis of five-year transition Avon Avon Cosmetics Co., Ltd. recently announced its 2002 sales, which notably Avon sales in China grew 30 percent market performance, which is in transition since 1998 has been for five consecutive years of high growth. Avon has always been high in China’s interest rate, first of its direct sales background, after the Chinese government in 1998 after a total ban on direct sales transformation in the form of retail sales of wholesale products, five years have been quietly passing away, has impressive performance Avon China’s market is really a bright sunny? Farmers slipping through the net woven net schemes Avon business owner of Monopoly now have such a feeling ‘Avon Monopoly is that more and more’, which is the Avon net programs implemented by weaving a natural phenomenon. Avon has said, ahead of them than the other competitors in mainland China at least 5,000 stores opened, ‘any one standing on the streets of the Chinese people will find that all around are Avon’. This is one of 5000 is derived from this kind: Based on the ‘6 million non-agricultural population of a point ‘principle, the Chinese market, broken down into 5000 regions, and are not allowed within 500 meters of the existence of two stores. Therefore, only the emphasis on non-agricultural population, so that the agricultural population to leak outside the weaving because they believe in cosmetics market, the agricultural population’s purchasing power and buying habits are not mature, non-agricultural population is mature, here the standard division is conducive to Avon dealers to protect profits, and thus to protect Avon’s own sales. Avon’s this ‘weaving net scheme’ should be affirmed in the market place is with a clear-cut defensive role. Because ever since China’s accession to the World Trade Organization, more and more foreign brands have entered China, while in the product, price and even the ads are familiar homogeneous envir