Less than 10 days after the official implementation of the “Direct Selling Regulations†in Mainland China, Avon’s global headquarters announced a global restructuring plan on December 9th, which will separate the business in the three regions of Central and Eastern Europe and China. From then on, Avon from China It will not be part of the Asia-Pacific headquarters management but will report directly to the headquarters. The purpose of this reorganization is to bring senior management closer to its main business area.
Avon said that considering the importance and long-term development potential of Central and Eastern Europe and China, Avon will manage these countries and regions as independent business units.
China has a certain degree of particularity in Avon's territory. It conducts business with traditional store retailing as its main business, and has carried out some direct selling businesses after obtaining direct sales pilot licenses.
Avon said that the new structure will adopt a mode of double reporting to Chairman and Chief Executive Officer Zhong Binci, and President and Chief Operating Officer Susan J. Kropf. Avon pointed out that the new structure is the first step in its plan to eliminate organizational hierarchy, let management The layers are more aware of day-to-day business operations and closer to their offices and customers.
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