Avon Wins OK to Test Direct Selling in 3 Chinese Areas

Ding-dong! The Avon lady is coming back to China.

Cosmetics giant Avon Products Inc. said Friday that it had won Chinese government approval to test direct selling in three regions beginning this month, seeking a stronger presence in the world’s seventh-largest economy.

“The objective of the test is to help the government find a suitable direct selling model that would fit the needs of Chinese consumers, promote social stability and help protect consumers against illegal practices,” Avon Chief Executive Andrea Jung said.

China closed the door on Avon’s direct selling in 1998, confining the company to selling through retail outlets.

The ban, which was mainly aimed at domestic pyramid schemes, sparked rioting and looting in central China.

New York-based Avon said it would begin testing direct selling in Beijing and Tianjin and the southern province of Guangdong, but Jung declined to give details of how many salespeople would be involved or the expected effect on growth.