P.M. BRIEFING : Avon Scores a Coup, Will Make and Sell Its Cosmetics in China
NEW YORK — Avon Products Inc. announced today that its cosmetics soon will be made and sold in China.
The beauty products company said it has begun a joint venture with a Chinese partner, Guangzhou Cosmetics Factory, which will provide the production plant.
Avon said it is one of the first foreign cosmetics companies authorized to manufacture in China and the first company either domestic or foreign allowed to sell directly to Chinese consumers.
James E. Preston, Avon’s chairman and chief executive officer, said China has enormous potential as a market for cosmetics. “There are about 500 million women in China, more than (in) the U.S. and Europe combined,” he said.
Avon, based in New York, already has a major foreign presence in the Pacific region.
Avon is making an initial investment of $1 million in the Chinese venture and will own 60% of the new company. Avon will furnish some equipment, cosmetics formulas, technical expertise and sales and marketing programs.
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