MOFCOM: China Has Approved 19 Chinese and Foreign-Invested Enterprises to Engage in Direct Selling Businesses

It was known from the MOFCOM recently that since the Regulation on Direct Selling Administration took effect on December 1, 2005, the MOFCOM had already approved 14 foreign-invested enterprises and 5 domestically invested enterprises to engage in direct selling activity in China.

These 14 approved foreign-invested enterprises (including JVs) are: Avon (China) Ltd., Nu Skin (China) Daily-Use & Health Products Ltd., Pro-Health (China) Daily-Use & Health Products Ltd., YOFOTO Daily-Use & Health Products Ltd., Oriflame Cosmetics (China) Co., Ltd., Kasly-Ju (Tianjin) Ltd., For You Group L.L.C, Mary Kay (China) Cosmetics Ltd., Amway (China) Daily-Use & Health Products Ltd., Perfect (China) Daily-Use & Health Products Ltd., Guangdong Apollo (Group) Co., Ltd., Nanfang Lee Kum Kee Co., Ltd., Herbalife (China) Daily-Use & Health Products Ltd., and Shaklee (China) Co., Ltd. Five domestically invested enterprises are: Liaoning Yilishen Tinxi Group Ltd., Nanjing JOYMAIN Technology Development Ltd., New Era Health Industry (Group) Co., Ltd., Guangdong Kang Li Medicines Co., Ltd., and Beijing Luo Mai Pharmaceutical Ltd.

According to the definition in Regulation on Direct Selling Administration, direct selling refers to enterprises hiring direct salesmen, who will promote products directly to the end users other than selling in a fixed business place.

The aggregated revenue of the 1,453 listed companies amounted to 5.7 trillion yuan, up 20.47 percent from 2005. Their total net profit rose 45.8 percent to 360.4 billion yuan.