A study explores the market characteristics and the implications for effective selling strategies in the cosmetic industry in China. In particular, it focuses on explaining the reasons for success of those foreign cosmetic companies that adopt direct selling, which can be considered a type of relationship marketing, as their main selling strategy. Also explored are the explanatory factors for acceptance of relationship marketing by Chinese consumers against the background of economic development and infrastructure problems in China, as well as the particular characteristics of China’s cosmetic industry. As relationships rate highly in the Chinese context, the practice of direct selling has perhaps tapped into this important cultural aspect and traversed the barriers facing those doing business through traditional marketing channels.

Keywords: Direct Selling, Global, Management, Marketing, Statistical Analysis, Strategy, Studies