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Abstract: Since 1998 , Avon in China has experienced two major restructuring. This transformation of the existence of the two key strategic mistakes , resulting in the Chinese market today, it 's decaying . 2010 first-quarter loss amounted to $ 11 million in the second quarter loss amounted to $ 2,000,000 . 2009 Amway China 's sales of 20 billion yuan , while Avon ( China ) is only 25 billion yuan, the year of the two days of direct marketing giant is now widening. Nearly two years, Avon has been trying to rectify this embarrassing situation. May 2010 , Avon ( China ) 's new general manager Aoduoneizi claimed to return within 18 months Avon direct sales model . Change existing sales model, return international direct selling ranks, bound into the inevitable cost . This thesis is to study from four directions : first, the direct advantages and chronic illness , the real charm lies in direct multilevel marketing ; Second , Avon ( China ) and the reasons for the two previous transformation problem analysis ; Third , Avon ( China ) in advancing the process of how to resolve a comprehensive direct resistance , construct a reasonable solution ; Fourth, China 's direct selling company analysis and recommendations . This paper aims to study the transformation of Avon third embodiment , by induction , literature research , case studies and PEST analysis tools for analysis and research , the following conclusions : First , direct marketing is not the same as pyramid selling , both are essentially different . Currently in China , the single -level direct selling is legal, but MLM ( multilevel marketing that is ) is illegal ; secondly, through the Amway and Avon localization business strategy analysis, summary Avon issues arising from the restructuring failed twice ; first Third, the reform of the return to full direct way , need to be taken both competitive , but also to minimize the cost of restructuring programs . Program consists of two parts: the product support programs , services, support programs . Fourth, China 's direct selling industry Enlightenment period has passed , and now has entered the period of development , national day of direct selling companies can learn from the success of foreign cosmetic companies direct sales model, gradually internationalized .
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