Facing a nationwide ban on direct sales on the mainland, the giant Amway company of the United States yesterday said it had decided to accept a government proposal to sell its goods through retail outlets. However, cosmetics company Avon is undecided.
Beijing announced the blanket ban last Tuesday, saying direct sales had led to widespread fraud, consumer losses and social disorder, and ordered firms engaged in direct sales to wind up their business by October 31, saying they could sell their products through shops instead.
Of the US firms involved, worst hit are Amway, Avon and Mary Kay, which have invested more than US$140 million in the mainland and provide income to more than two million people.
A spokesman for Amway in Beijing said following the ban the firm had decided to sell its goods through dedicated retail shops.
Its 40 distribution centres in 18 cities and provinces will become shops open to the general public.
'We are drawing up a detailed plan that will be finalised soon,' the spokesman said.