Avon dismisses talk of exit after sales dip

Avon Products Inc, the world's largest direct seller of cosmetics, on Wednesday dismissed rumors that it is exiting China after a prolonged slump in sales.

According to industry sources, the company has been facing a torrid time in China due to weakness in direct sales and product innovation.

"Avon is making good progress (in China) and we are confident that we have the right strategy to make the business profitable," said a statement from the company.