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Amway looks to expand on eve of law changes

Steve Van Andel, chairman of Alticor, parent company of US direct sales giant Amway, signed a letter of interest to build a research and development center in Pudong's Zhangjiang Hi-tech Science Park complementing R&D operations at Guangzhou Amway. According to a South China Morning Post report, the move comes as Beijing prepares a new draft law ending a ban on direct sales in compliance with WTO rules. Right now Amway cannot use independent door-to-door salespersons as in the US and other markets, but must sell through retail outlets and staff employed by the shops. Amway reportedly has China sales of US$1.2 billion, 20% of its global turnover.

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