【正文】 s responsible to sell all Avon?s products by purchasing them from Avon Manufacturing (Guangzhou) Co., Ltd. and OEM plants. Other Products: ? Underwear ? Jewelry Avon Operation International(AOI) 74% 60% Avon Product (China) Co., Ltd. is Avon Group?s headquarter and controls Avon?s enterprises in China Overseas China Source： Industry interview Industrial and mercial administration bureau PwC analysis PwC 13 Target Overview ? Company Profile – Avon Group Avon Product (China) Co., Ltd or Avon China* Company Type Joint Venture Enterprise Registered Capital (USD Mn) Partner and Share Partner1: Guangzhou Meichen Holding Co., Ltd. 20% Partner2: Avon Operation Inc. 74% Partner3: Leung Qi Xiong 3% Partner4: Li Guo Bao 3% Revenue in 20xx (RMB Mn) Total Employees 126 Location Guangzhou Start Year 1990 Main Business ? Produce and sell cosmetics, personal care, hairdressing, clothing (including underwear), artificial jewellery etc. ? Research / develop new products, and provide other support services * Avon Product (China) Co., Ltd. formerly called Avon Product (Guangzhou) Co., Ltd. In 1999. 800 Gao Shoukang Legal Representative Source： Industry interview Industrial and mercial administration bureau PwC analysis PwC 14 Target Overview ? Company Profile – Avon Group Avon Manufacturing (Guangzhou) Co., Ltd. Company Type Joint Venture Enterprise Registered Capital (USD Mn) Partner and Share Revenue in 20xx (RMB Mn) Total Employees 225 Location Guangzhou Start Year 1990 Main Business Produce and sell cosmetics, personal care, hairdressing etc. Not available now Legal Representative Gao Shoukang Source： Industry interview Industrial and mercial administration bureau PwC analysis Partner1: Guangzhou Meichen Holding Co., Ltd. 35% Partner2: Avon Operation Inc. 60% Partner3: Leung Qi Xiong % Partner4: Li Guo Bao % PwC 15 Target Overview ? Management Profile – Avon Group Source： Industry interview Industrial and mercial administration bureau PwC analysis Management Experience Person in charge Gao shoukang Position Gender President and legal representative of Avon China Male Age 52 Education Undergraduate 19741976 Researcher at the GUO HUA Advertisement Co. 19761978 Director of marketing department at Pfizer Pharmaceutical Manufacture 19781986 Manager of personal products development at JI SHI Foreign Firm 19861999 General manager of Taiwan Avon Co. 1999now General manager of Avon Product (China) Co., Ltd. Job History Over 15 Yrs Avon Group PwC 16 Target Overview Source： Public information from Avon Industry interview PwC analysis Brand Category AVON ? Focus Products Avon Group Up2U ? Makeup ? Facialcare ? Makeup ? Bath amp。 bodycare ? Fragrance ? Ladycare Special Products ? Underwear ? Jewelry PwC 17 Target Overview ? Company Culture – Avon Group The human resource is the key for Avon’s future development and the following is what Avon will focus on ? Strictly follow Avon’s rules and principles。 ? Effectively implement Avon’s strategies。 ? Make staff Ambitious to bee business leaders。 ? Award outstanding performance。 ? Devoted to the customers。 ? Develop worldclass talents and skills。 Source： Public information from Avon Industry interview PwC analysis PwC 18 Target Overview ? Business Development Trends – Avon Group Source： Public information from Avon Industry interview PwC analysis Franchise shops ? Plan to have 8,000 to 9,000 franchise shops to cover most areas in China。 ? Concentrate on opening mid to large size franchise shops with an area larger than 50 in the large cities such as Shanghai。 ? Plan to add more beauty equipment in the shop to improve the Avon brand image。 ? Plan to improve the management and control to the franchise shops。 Inter work The development plan in the next one to three years as follows: ? Create more Avon online shopping channels to sell products directly via inter。 ? Encourage the franchise shops and distributors to offer online shopping capabilities。 ? Transfer some salespersons to “ESalespersons” to make the logistics process more efficient。 Flagship Shops ? Open more than 10 flagship shops in the mid to large cities。 PwC 19 II. Avon Group i: Target Overview ii: Market and Products iii: Distribution Channel iv: SWOT Analysis and Comments iv: Financial Analysis PwC 20 03006009001999 20xx 20xxMarket and Products ? Market performance – Avon Group Avon China Operating Revenue* 1999 to 20xx Value: RMB Million Revenue Composition** 20xx ? Revenue of Avon China rose strongly at 43% CAGR from 1999 to 20xx。 ? Facialcare products accounted for a majority of Avon?s total revenue。 Operating Revenue Amount 414 635 851 Source： Industry interview Industrial and mercial administration bureau PwC analysis Facialcare 57% Underwear /Jewelry 4% Makeup 22% Bathamp。 bodycare 12% Fragrance /Ladycare etc. 5% * Operating Revenue = Retail sales/(1+VAT)/(1+trading margin)。 ** The revenue is set off according to Avon?s criteria。 PwC 21 0204060801001999 20xx 20xx01002003004005001999 20xx 20xxMarket and Products ? Category performance Avon Group Facialcare Operating Revenue 1999 to 20xx Value: RMB Million ? Revenue of facial products grew fast at 41% CAGR from 1999 to 20xx。 Source： Industry interview Industrial and mercial administration burea