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Acorn Enters Agreement to Market Guthy-Renker Brand in China
Posted: December 8, 2009
Acorn International, Inc. announced that it has reached an exclusive agreement with Guthy-Renker to market Sheer Cover cosmetics in China. Under the agreement, Acorn will be Guthy-Renker's exclusive agent to market and distribute Sheer Cover in China. Acorn is authorized to distribute the Sheer Cover cosmetics through all its available distribution channels, including both direct and non-direct TV sales. The agreement will last one year initially and open for extension pending the first year's sales performance.
Acorn is an integrated multi-platform marketing company in China, operating one of China's largest TV direct sales businesses in terms of revenues and TV air time and a nationwide off-TV distribution network. Acorn and Guthy-Renker entered into the agreement, according to a press release, due to the synergies between Acorn's developed infrastructure (in house call-center, in-house media buyers, in-house production) and Guthy-Renker's cutting-edge continuity program.
"We are very excited to work with Acorn to market our Sheer Cover products in China," said Alberto Bottene, senior vice president, Guthy-Renker. "Acorn has a long history of marketing innovative and valuable products and is the market leader in the TV direct sales business. We intend to use Acorn's mature platform in China to expand Guthy-Renker's global footprint."
"We are glad to have the opportunity to work with one of the world's largest direct response television companies and introduce an excellent line of cosmetic products," said James Hu, chairman and CEO, Acorn. "The introduction of Sheer Cover to our product portfolio fits perfectly with our strategy of expanding the cosmetics business, which has been an important revenue contributor in the past quarter. We will leverage Guthy-Renker's global brand awareness and years of experience to market and promote Sheer Cover and look forward to a successful partnership in 2010."
Sheer Cover is one of Guthy-Renker's most popular lines of cosmetics. The success of Sheer Cover in the U.S., according to the company, can be largely attributed to the exclusive formula of light reflecting minerals.