Retailing, Franchising, and Consumerism Business Intelligence in China

Guthy-Renker Inks China Distribution Agreement

The Chinese marketing company Acorn International Inc. and U.S.-based Guthy-Renker have entered into an exclusive agreement for Acorn to market Sheer Cover cosmetics in China.

Under the agreement, Acorn will be Guthy-Renker's exclusive agent to market and distribute Sheer Cover in China. Acorn is authorized to distribute the Sheer Cover cosmetics through all its available distribution channels including both direct and non-direct TV sales. Initially, the agreement will last one year and is open for extension depending upon the first year's sales performance.

The companies say that Acorn and Guthy-Renker entered into the agreement due to the synergies between Acorn's developed infrastructure — with an in-house call center, in-house media buyers, and in-house production — and Guthy-Renker's cutting edge continuity program.

Alberto Bottene, the senior vice president of Guthy-Renker, commented that Acorn has a long history of marketing innovative and valuable products and is the market leader in the TV direct sales business and Guthy-Renker intend to use Acorn's mature platform in China to expand Guthy-Renker's global footprint.

James Hu, the chairman and chief executive officer of Acorn added that the introduction of Sheer Cover to Acorn's product portfolio fitted perfectly with their strategy of expanding the cosmetics business, which had been an important revenue contributor in the third quarter of 2009.

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