China approves more direct sales licenses
The Ministry of Commerce has approved four companies’ direct sales licenses, the International Finance Journal reported.
US companies Nu Skin and Pro-Health (China) Co, and two domestic companies, Zhen-Ao Group and Liaoning Yilishen Tianxi Group, have been granted licenses. A list of licensed companies would be announced in the near future.
Nu Skin said that following the approval, the company would launch a series of direct sales activities in its China headquarter, Shanghai, over the fourth quarter of 2006. The company would also start applications of direct sales licenses on provincial levels for its branches and gradually expand direct sales to other parts of the country.
The company also stated that the license gives the company favourable conditions for business development include the right to sell other than at the 160 fixed retails outlets, recruit junior and part-time sales staff and fair competition with other companies.
The soon-to-be-announced completed list of licensed companies would be dominated by domestic companies and new foreign players in China.
Prior to the latest approvals, Avon was the only company licensed to operate a direct sales network in China.