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The growth followed a nine percent rise in third quarter sales year on year. Company officials declined to give detailed sales figures for the latest fiscal year, but said its performance had met their expectations.

"Sales in China mainland have climbed since the restructuring," said Kao Shoukang, president of Avon Products (China) Co Ltd. "We also hired more direct salespeople.

"Performance in the first couple of months this year has been encouraging."

Avon, the world's largest door-to-door cosmetics seller, recruited 399,490 direct salespeople as of the end of January, representing eight percent of the global figure.

The door-to-door retailer, which was the first among its rivals to be licensed for direct sales on the mainland, is expanding its production capacity, boosting advertising spending and building a new ordering system to lift sales. The new ordering system allows salespeople to log orders via mobile phone and will launch by July. It will shorten product delivery time from 72 to 48 hours.

The company also plans to acquire domestic cosmetics makers to increase its market share. Avon is reportedly in talks to buy Beijing Dabao Cosmetics Co, but Kao yesterday declined to comment on the deal.

Ban lifted

China mainland in 2005 lifted a seven-year ban on door-to-door sales as part of its commitment to the World Trade Organization. The practice was banned in 1998 to stop rampant fraud from pyramid sales schemes.

Twelve overseas-funded direct-sales retailers including Avon, Amway (China) Co Ltd and Mary Kay (China) have been granted licenses for door-to-door operations.

Amway announced in January it would recruit direct salespeople and provide training.

The US-based firm, which obtained a license in December, plans to implement a dual sales strategy with door-to-door selling making up a major part of its revenue. It also operates 188 outlets across the mainland and plans to expand further.

(For more biz stories, please visit Industry Updates)