Retailing, Franchising, and Consumerism Business Intelligence in China


Avon Reports Increasing China Revenue

Avon says its revenue in China grew 9%, despite the exit of company-run store counters, which had a negative 10-point impact on the company's quarter's revenue growth.

Growth reflected the continued roll out of direct selling. At quarter end, Avon China had over 236,000 certified Sales
Promoters registered with the government and was engaged in training these Sales Promoters to become active Representatives within Avon's direct-selling model.

Units were 1% higher versus the prior year in the third quarter.

China had an operating loss of US$3.0 million in the third quarter, versus operating profit of US$1.6 million in 2005's third quarter, due to increased expenses associated with the launch of direct selling and fees paid to service centers. Operating margin was (6.1)%.



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