雅芳(中国)战略分析-英文版

Avon (China) Strategic Analysis

I. Introduction

1. Overview

Avon, founded in 1886 in New York, the USA. At present it have directly invested in 45 countries and regions, with more than 300 million independent sales representative and operations in 137 countries and regions, with annual sales of 5.2 billion dollars. More than 20,000 kinds of products available, such as skin care products, cosmetics, personal care products, incense goods, modern jewelry, female underwear/fashion clothes, health food, etc. It is the largest 500 enterprises of America.

Since the beginning of 1990, Avon bring its historical mission and culture to China, committing to shaping a unique beauty for the Chinese women , for the majority of Chinese women opened the door to their career. More than 10 years, China Avon has successful built shops around the national sales network - 74 branch offices, nearly 6,000 sales and service outlets and about 700 beauty counters, which are giving Chinese women from 23 provinces, five autonomous regions and four municipalities high-quality products and services.

2. Development Process

January 23, 1990, Avon invest 27.95 million dollars, join Guangzhou Cosmetics Company to set up “Sino-US joint v enture ·Guangzhou Avon Co., Ltd.”

November 14, 1990, Avon put into operation in China.

June 15, 1998, the original approach to direct sales mainly of Avon become China's first approval from the government restructuring of enterprises, introduction of the wholesale, retail sales of products. In September, Avon has become the first State of the Ministry of Foreign Trade and Economic Cooperation approved by the shop and employing a salesman selling a product of the system of enterprises.

November 1998, Avon invested 43 million dollars, in Guangzhou Conghua Taiping Industrial Zone to build a production base officially put into operation.

May 1999, "Guangzhou Avon Co., Ltd." changed its name to “Avon (China) Ltd.”May 1998, Avon set up a special counter in Dongguan; March 1999, the first Avon Products store was established in Guangzhou; October 2000, Avon's first flagship

store was established in Beijing Dongfang Plaza; in 2002, the first concept batch of Avon Shops in Beijing, Shanghai and Guangzhou was completed.

November 2000, Avon (China) began selling products online.

March 2, 2006, Avon (China) Co., Ltd. officially announced by the state Department of Commerce awarded the first domestic direct sales business license. April 3, 2006, Avon (China) Co., Ltd. announced: Launch a nationwide consumer advisory services activities to promote its full success of the pilot single-layer direct sales model.

Ⅱ. The External Environment Analysis

1. General Environment

(1) Demographic Segment

China is a big country with 1.3 billion people, 48.47 percent of them are women. It is such a big market!

From the perspective of age structure, the population aged 15-59 is 897.42 million, accounting for 68.70 percent of the total population, from the perspective of geographic and income distribution, generally speaking, people in densely populated areas have higher income, so their consumption desire and consumption levels are higher.

（2）Political Segment

China is a country, that is among the changes in the rule of man to the rule of law, and whose legal system is improving. The nation actively increase the intensity to combat imitations, reduce the administrative means to regulating the economy, mainly using market regulation, and actively promote privatization, foreign investors are welcomed. Besides, regional protectionism is gradually reduced, opening attitude can attract foreign investment, and also by means of preferential tax policies. The intensity of barriers is gradually reduced and even eliminate. In the area of industry, the nation makes great efforts to regulate the quality of cosmetics.

（3）Economic Segment

Since joining the WTO, China's market is more and more open, and on a global scale