Avon China President to Persuade the Chinese Government to Lift Ban on Direct Selling

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Table of Contents

Direct selling involves the marketing of products or service to independent buys directly from a retail location.
With direct selling, market negotiations and cost of adverts are reduced.
Thus, direct selling business is called referral marketing.

Avon’s reaction to the Ban

In 2008, Avon was the top direct selling company worldwide.
Avon sold beauty products and services.
The president of Avon made consultation with different stakeholders to remove the ban.
Stakeholders include officials of SAIC and the Trade Bureau.
Avon and other multi-level organisations made consultations with the Chinese state counsellor.

Avon’s reaction to the Ban

The president made consultations with MOFTEC state officials to remove the ban on direct selling.
Avon’s president organised a series of meetings with media experts and journalist to diffuse the negative impression about direct selling practices.
Pryor established a crisis management committee to discuss a new marketing strategy.

Avon’s strategy after the ban

Create a political situation that would pressure the Chinese government to renounce the ban.
Leave China market.
Accept the new rule and regulations for direct selling.

The company had three options after the ban

During the briefing, Avon’s president accepted the Chinese decision in regulating illegal companies with unethical practices.
The move was tantamount to diffuse tension between both parties.
Pryor addressed issues pertaining to employee welfare, field agents, public media, and customers.

The president's reaction

The ban triggered a series of uprisings by the employees.
Avon’s president directed its crisis committee to accept refunds of products from the selling franchise.
Avon’s financial presence in China stands at $70 million.
Thus, building public confidence will put pressure on the Chinese government to suspend the ban.

Effects of the ban