Avon Case Study

AVON PRODUCTS IN CHINA The Avon case presents the evolution of its endeavors in China during the 1990s. With a renewed strategy of aggressive expansion towards conquering the orbit food market of beauty products and direct marketing, Avon arrived to China in 1990, establishing its trading operations base in Guangzhou. Being the first direct selling company that entered the Chinese market, Avon faced several obstacles mostly in terms of selling the product, given that in the Asian giant star there was not usual to sell brink to door to the clients and the use of prove-up had previously been considered bourgeois, ostentatious and mostly, as luxury goods. Avons success can be explained by its smooth strategy to enter the Chinese market. Instead of incoming to China as a new American company, Avon was presented to the market as a joint venture with the local anesthetic cosmetic company Guangzhou Cosmetics Factory, that also proved to be cooperative and astute. The immersion happened in a crucial moment; the country was personnel casualty through several changes that allowed the acceptance of cosmetics among the Chinese women and with the increase of the buy power among Chinese salary workers, they were able to afford it. Finally, angiotensin converting enzyme of the keys to Avons initial success was how it adapted to Chinas cultural and geographical challenges.

In the beginning, the direct selling sentiment was foreign to China, creating a challenge in training, especially in how to access customers. It also presented a distribution problem qualification it difficult for a company to get to the customer; reason out why Avon created the branch distribution system, which consisted in setting up branches that would serve as distribution and training centers. Avon also started to make special lines focused in the Chinese features, even focalization in increasing the amount of Chinese raw square used in its products, i.e. in 1992 only 10% were local raw materials, and by the end of 1996 there were nearly 95%. Having been successful with... If you want to get a full essay, stray it on our website: Orderessay

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