Avon

Summary

From being a door-to-door salesman, David H. McConnell created a beauty brand which is now a part of São Paulo-headquartered conglomerate, Natura. The brand is widely acclaimed for empowering women worldwide. 

History

Avon’s founder David H. McConnell began his career selling books as a door-to-door salesman in New York who offered beauty products as a gift. He soon realised customers were more interested in the free perfume samples than the books. That was a game changer. From a small office in New York City, McConnell mixed Avon’s first fragrances himself and recruited a team of women to be sales representatives. It was a radical business model in 1886 but McConnell believed in the power of community and was passionate about giving women economic freedom.

The company was a initially named “California Perfume Company.” “We were founded to provide an opportunity to earn and learn – bringing economic freedom for representatives so they can shape their own future. We carry this spirit with us today.. supporting women across the world to build their own business.  But there is still more work to do.. millions of women and girls are unable to fulfil their dreams due to economic, social and political barriers or simply because of their gender” per the official website.

In May 1894 Alexander D. Henderson became vice-president and treasurer and helped shape the company’s policies and growth. In 1897 they built a laboratory in Suffern, New York. And on May 3, 1909 California Perfume Company moved to 31 Park Place, New York. On January 28, 1916 it was incorporated in New York and McConnell, Henderson and William Scheele were listed as company officials. On October 6, 1939 California Perfume Company changed its name to Avon Products Inc. The company became famous worldwide following the popularity of its campaign in 1954: “Ding Dong Avon Calling.” By 1978 the number of Avon Ladies crossed the one million milestone.

In 1990 Avon entered China and adopted a retail model there in 1998 after China banned direct selling. The following year Andrea Jung becomes Avon’s first female CEO. The next century witnessed the company embarking on a path of mergers and acquisitions. Avon acquired Silpada- a direct seller of silver jewellery- in 2010 for reported $650 million. Two years later Coty Inc. offered $24.75 a share for Avon but the deal didn’t materialise. In March 2016 Cerberus Capital Management reportedly paid $435 million for preferred stock in Avon Products as part of a deal initiated in December 2015 when Avon sold 80.1 percent of its North American Business to Cerberus for reported $170 million. The total value of the deal was estimated at $605 million.

In 2016 Avon completed the separation of its United States, Canada and Puerto Rico business as New Avon LLC which also trades with the “Avon” name. Jan Zijderveld was appointed CEO in February 2018. As part of a three-year plan Avon Products moved its headquarters to London. In 2019 New Avon LLC entered into an agreement with LG Household and Health Care Ltd., which acquired the cosmetics business for reported $125 million.

In 2019 Natura acquired Avon Products for reported $2bn via a share swap creating the world’s fourth-largest beauty company with a redoubled focus on direct sales. Natura holds 76 per cent of the combined business with over $10 billion in annual revenue, according to a company release. Following the acquisition, the São Paulo-headquartered conglomerate owns The Body Shop, Aesop and Avon Products. ‘The combination of Avon, Natura, The Body Shop and Aesop significantly amplifies the reach of a multi-channel, multi-brand group that will be an unparalleled leader in the Direct-to-Consumer space, bringing beauty to over 200 million consumers across the world anytime, anywhere, every day through multiple channels, touch-points and iconic brands’ states Avon’s official website.

The next step was to appoint Angela Cretu CEO of Avon to lead the next era of Avon’s transformation and take responsibility for business operations outside of Latin America and for the oversight of the Avon brand globally. Recently Avon launched a new campaign ‘Watch Me Now‘ to establish its relevance to today’s shopper.

‘We are taking what we’ve learnt over the past 135 years about the power of relationships and social selling and applying that in today’s context — using new digital tools that enable our beauty advisors to earn flexibly today across their social platform’ CEO Angela Cretu stated in a company release.  ‘We’re continuing to innovate and evolve through investment in research, product development and people to ensure beauty is democratic and accessible to all…’

Sustainability is one of the company’s pillars. ‘We’re on an ambitious journey to reduce the packaging our of products, move to 100% sustainable paper, and increase use of recycled and recyclable materials.  We’re working towards more renewable and natural ingredients and biodegradable formulas for our beauty products.  And we’ve committed to full traceability and/or certification of our critical supply chains by 2025′ reads a note on the official website.

Today the one-to-one relationship defined by high quality and personal service is still at the core of Avon’s business but it’s enhanced by a host of digital tools that allow their Representatives and their customers to connect, communicate, share and shop.

Vision

Avon’s vision of beauty democracy emphasizes an inclusive approach that seeks to make beauty accessible to everyone, regardless of their background or circumstances. This commitment to inclusivity drives the brand’s mission to empower women by offering a diverse range of beauty products that cater to various skin tones, types, and personal preferences. By embracing global beauty trends and incorporating cutting-edge technology, Avon ensures that its offerings are not only contemporary but also relevant to the needs of women around the world. This focus on inclusivity is not merely a marketing strategy; it is a foundational principle that informs product development and customer engagement, fostering a sense of belonging and community among users.

In addition to its dedication to inclusive beauty, Avon remains committed to keeping women at the forefront of the beauty conversation. This is reflected in its ongoing efforts to create products that serve as both essential staples and trend-driven items in every woman’s beauty kit. From skincare to makeup and fragrances, Avon’s extensive product line is designed to celebrate individual beauty and personal expression. By continuously innovating and adapting to consumer preferences, Avon positions itself as a brand that understands the evolving landscape of beauty and the unique needs of its diverse clientele, ultimately reinforcing its role as a leader in the industry.

At the core of Avon’s business model lies a radical commitment to community and economic empowerment. From its inception, the brand has prioritized giving women the tools and opportunities they need to achieve financial independence through direct selling. This model not only provides women with a source of income but also fosters a sense of camaraderie and support within local communities. By championing economic freedom for women, Avon creates a positive impact that extends beyond beauty, allowing its representatives to build their own businesses while sharing products they genuinely believe in. This holistic approach underscores Avon’s vision, highlighting the brand’s dedication to uplifting women and promoting a culture of empowerment, inclusivity, and community.

Mission Statement

Avon’s mission is centered around improving the lives of women across the globe, particularly through its core cause areas of Breast Cancer and Violence Against Women. The brand is dedicated to accelerating progress in these critical issues by fostering accountability and discovery in healthcare and advocacy. Recognizing the profound impact of social stigma, Avon seeks to illuminate these often-overlooked challenges, bringing them to the forefront of public awareness. By addressing these issues openly, Avon aims to create a more supportive environment for women, encouraging them to speak out and seek help without fear of judgment.

A woman-centric approach lies at the heart of Avon’s initiatives, guiding every project and program the brand undertakes. This perspective enables Avon to break traditional barriers that have historically marginalized women’s voices and experiences. By prioritizing the needs and concerns of women, Avon strives to create innovative solutions that empower individuals to take charge of their health and safety. The brand understands that true empowerment comes from knowledge, support, and resources, and it works diligently to ensure that women have access to the tools they need to advocate for themselves and their well-being.

Ultimately, Avon’s mission is about building a brighter future for women everywhere. By cultivating a community of support and understanding, Avon aims to inspire women to embrace their strength and resilience. Through education, advocacy, and collaboration, the brand endeavors to dismantle the obstacles that hinder women’s progress and well-being. Avon’s commitment to improving lives is not just about creating products; it’s about fostering a movement that champions women’s rights, health, and safety, ensuring that every woman can thrive in a society that values her contributions and well-being.

Key Team

CEO Angela Cretu takes responsibility for business operations outside of Latin America and the oversight of the Avon brand globally. She brings over twenty years of experience at Avon in various senior executive roles, most recently as Group Vice President and General Manager, Central Europe. Before that she successfully led the Eastern Europe and Africa and Middle East clusters. Angela has great passion for Avon, its representatives, customers and employees, and has been deeply involved in Avon’s drive for women’s economic empowerment. Other members of the leadership team include Sipelelo Lityi (Global Lead For Avon Pride) Werner Botes (Purpose and Sustainability Communications Manager) Tracey Powers ( Head of Sales, Avon UK) and Ximena Zaratiegui (Digital Channel Specialist).

Awards and Recognition

* Editor’s Choice Award at the 2022 Global Green Beauty Awards * Avon China has been awarded as 2021 Best Inclusive company by Shero * Avon Croatia won Cosmo Beauty Awards 2021 in two categories * Avon got four Product Awards in Glamour Best of Beauty 2021 * Angela Cretu was titled Champion of Change in Business Awards 2021 * Angela Cretu won CEO of the Year in the SABRE EMEA Awards 2021 * Avon Russia has won Best Campaign 2020 for campaign against gender-based violence * Avon Distillery Purify Oil has been awarded an Elle Beauty Award in Taiwan * Avon won Good Housekeeping Reader’s Choice Award for its ANEW Vitamin C Serum * Cannes Lions Award for ‘You’re Not Alone’ campaign from the Avon Institute in Brazil * Avon Brazil won Prêmio ECO 2019 Awards for positive impact * Avon Romania’s “Time for your own time” campaign won Gold EFFIE in Branded Content

Products And Services

Avon offers a diverse range of products that cater to the varied beauty and personal care needs of its customers. At the heart of Avon’s offerings are its extensive skincare lines, which include moisturizers, cleansers, serums, and anti-aging treatments designed to address a wide array of skin concerns. These products are formulated with innovative ingredients and technologies, reflecting the latest advancements in skincare science. Whether targeting hydration, radiance, or blemish control, Avon’s skincare solutions aim to empower individuals to achieve their best skin, contributing to the overall goal of enhancing confidence and well-being.

In addition to skincare, Avon boasts a vibrant array of cosmetics, including foundations, lipsticks, eyeshadows, and blushes that cater to various skin tones and preferences. The brand prioritizes inclusivity by offering products that suit a wide range of aesthetics, from natural looks to bold, statement-making styles. Avon’s makeup line not only emphasizes quality and performance but also incorporates skincare benefits, ensuring that users can enhance their beauty while nourishing their skin. Seasonal collections and collaborations further allow Avon to stay relevant to evolving trends and consumer desires, providing fresh and exciting options for makeup enthusiasts.

Beyond beauty and personal care, Avon has expanded its product portfolio to include fragrances, fashion accessories, and home products, creating a comprehensive lifestyle brand. The fragrance line features a variety of scents that evoke different moods and occasions, appealing to a broad audience. Additionally, Avon offers stylish accessories that complement its beauty products, including jewelry, handbags, and seasonal items. The home collection includes candles, decor, and essential household items, allowing customers to bring Avon’s ethos of beauty and empowerment into their living spaces. Through this diverse range of products and services, Avon not only meets the everyday needs of its customers but also reinforces its mission to enhance the lives of women globally, making beauty an integral part of their lives.

References

• Official website Avon
• ‘Beauty should be cruelty free’ Avon
• Angela Cretu appointed CEO Avon
• Avon names new CEO Retail Dive
• Natura agrees to buy Avon.. creating cosmetics powerhouse CNBC
• Avon updates its look, strategy USA Today
• Facebook page of Avon Facebook
• Natura &Co to close acquisition of Avon Avon Worldwide
• Avon rejects $10bn takeover bid from celebrity-fragrance company Coty The Guardian
• Avon to move headquarters to UK BBC
• Avon’s ‘Watch Me Now’ campaign Global Cosmetics News
• Brazil’s Natura confirms $2bn deal to buy Avon Financial Times
• Instagram page of Avon Instagram
• Avon to cut 2500 jobs and move headquarters to Britain Daily Sabah
• Twitter page of Avon Twitter
• Avon: The rise and fall of a beauty icon Fortune
• LinkedIn page of Avon LinkedIn
• Women empowerment is at the core of Avon Avon Worldwide
• Youtube channel of Avon Youtube
• Environmental Impact Avon Worldwide
• Wiki page of Avon Wikipedia