China Ain't Worth It

China Ain't Worth It

Revlon is leaving China. The company announced in December 2013 that it would let go of 1,100 staff, including 940 beauty advisers in the Middle Kingdom. Two months earlier, Avon Products announced that possible fines related to foreign bribery probes in China might materially hurt profits. Meanwhile, this January, Utah-based Nu Skin Enterprises learned that the Chinese government would investigate its operations, after a report in the state-run People’s Daily claimed that the skin-care and nutrition company operated as a “suspected illegal pyramid scheme.” Are Revlon’s departure and the investigations of Avon Products and Nu Skin two sides of the same coin? Evidence is mounting that China is intentionally creating challenges for foreign brands. As Beijing works to build up China’s consumer economy and employ more citizens in service-sector jobs, the Chinese leadership wants the benefits to accrue to indigenous companies. Will more foreign companies decide “China Ain’t Worth It?”

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