NEW YORK, July 17 /PRNewswire-FirstCall/ -- Avon Products (China) Co.,
Ltd. today said that as of June 30, 2006, it has recruited more than
114,000 licensed Sales Promoters, and that more than 31,000 additional
applicants are in various stages of the certification process, just four
months after the company was awarded the first direct-selling license.
"We are very pleased with the roll-out of our new business model," said
SK Kao, General Manager, Avon China. "The high numbers of licensed Sales
Promoters in such a short time reflects the great appeal of the Avon
earnings opportunity in the Chinese market, enhancing our confidence in the
future of our business in China. We also are very pleased that nearly 90%
of our Beauty Boutiques have qualified to act as Service Centers under the
government's regulations, indicating that our Beauty Boutique owners want
to be involved in direct selling," he added.
"The Direct Selling Administration Ordinance and the Document Number
455 have given very clear guidance to our practice."
Under the new model, the Beauty Boutiques now offer after-sales
services (order pick-ups, product returns, credits, product trials, billing
assistance, etc.) to Sales Promoters, and beauty consultation services to
consumers, while continuing to sell products at retail.
"Our base of almost 5,700 Beauty Boutique owners provides one of the
largest service coverage networks in China, and is the foundation of our
business and at the core of our direct-selling model," Mr. Kao said.
Avon's Sales Promoters are the company's direct-selling
Representatives, who provide customers with the one-on-one personal service
that Avon is recognized for all over the world.
Mr. Kao added, "Avon's direct-selling model brings the best features of
retail and single-level direct-selling together, and as we continue to
comply fully with the government regulations for direct selling, we believe
this partnership will enable Avon to serve more and more women throughout
China with our high-quality beauty products."
The company said that the number of Sales Promoters, Sales Promoter
Trainers and related information are required to be posted monthly on the
web site of the Ministry of Commerce at http://zxgl.mofcom.gov.cn.
Avon, the company for women, is a leading global beauty company, with
over $8 billion in annual revenue. As the world's largest direct seller,
Avon markets to women in well over 100 countries through over five million
independent Avon Sales Representatives. Avon's product line includes beauty
products, fashion jewelry and apparel, and features such well-recognized
brand names as Avon Color, Anew, Skin-So-Soft, Avon Solutions, Advance
Techniques, Avon Naturals, Mark, and Avon Wellness. Learn more about Avon
and its products at http://www.avoncompany.com.
CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" STATEMENT UNDER
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Statements in this release that are not historical facts or information
are forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Words such as "estimate," "project," "plan,"
"believe," "expect," "anticipate," "intend," "planned," "potential" and
similar expressions, or the negative of those expressions, may identify
forward-looking statements. Such forward-looking statements are based on
management's reasonable current assumptions and expectations. Such forward-
looking statements involve risks, uncertainties and other factors, which
may cause the actual results, levels of activity, performance or
achievement of Avon to be materially different from any future results
expressed or implied by such forward-looking statements, and there can be
no assurance that actual results will not differ materially from
management's expectations. Such factors include, among others, the
following:
-- our ability to implement the key initiatives of our global business
strategy, including our multi-year restructuring initiatives, product
mix and pricing strategies, enterprise resource planning, and cash
management, tax, foreign currency hedging and risk management
strategies, and our ability to achieve anticipated benefits from such
initiatives;
-- the possibility of business disruption in connection with our multi-
year restructuring initiatives;
-- our ability to achieve growth objectives, particularly in our largest
markets and new and emerging markets;
-- our ability to replace lost sales attributable to the repositioning of
the Beauty Plus and Beyond Beauty business in the United States;
-- our ability to successfully identify new business opportunities and
acquisition candidates, and our ability to successfully integrate or
manage any acquired business;
-- the effect of political, legal and regulatory risks, as well as foreign
exchange or other restrictions, imposed on us, our operations or our
Representatives by governmental entities;
-- our ability to successfully transition our business in China in
connection with the resumption of direct selling in that market and our
ability to operate using the direct-selling model permitted in that
market;
-- the impact of substantial currency fluctuations on the results of our
foreign operations;
-- general economic and business conditions in our markets, including
social, economic and political uncertainties in Latin America, Asia
Pacific, Central and Eastern Europe and the Middle East;
-- a general economic downturn, information technology systems outages,
disruption in our supply chain or manufacturing and distribution
operations, or other sudden disruption in business operations beyond
our control as a result of events such as September 11, 2001 or
Hurricane Katrina;
-- the quality, safety and efficacy of our products;
-- our ability to attract and retain key personnel and executives;
-- competitive uncertainties in our markets, including competition from
companies in the cosmetics, fragrances, skin care and toiletries
industry, some of which are larger than we are and have greater
resources;
-- our ability to implement our Sales Leadership program globally, to
increase Representative productivity, and to compete with other direct-
selling organizations to recruit and retain Representatives;
-- the impact of changes in market trends, purchasing habits of our
consumers and changes in consumer preferences, particularly given the
global nature of our business and the conduct of our business in
primarily one channel;
-- our ability to protect our intellectual property rights;
-- the risk of an adverse outcome in our material pending and future
litigations;
-- our access to financing; and
-- the impact of possible pension funding obligations and increased
pension expense on our cash flow and results of operations.
Additional information identifying such factors is contained in Item 1A
of our Annual Report on Form 10-K for the year ended December 31, 2005,
filed with the U.S. Securities and Exchange Commission. We undertake no
obligation to update any such forward-looking statements.
SOURCE Avon Products
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http://www.avon.com
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CONTACT:
MEDIA: In China: Christine Qian
+8620-38820328, or In the U.S.: Sharon Samuel, +1-212-282-5322,
or Jennifer Vargas, +1-212-282-5404, or INVESTORS: Renee Johansen
or Rob Foresti, +1-212-282-5320, all of Avon Products
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