10.28.10
5. Avon
New York, NY
www.avoncompany.com
Beauty Sales: $7.4 billion for cosmetics, toiletries and fragrance
Corporate Sales: $10.3 billion
Key Personnel: Andrea Jung, chairman and chief executive officer; Charles Cramb, vice chairman, chief finance and strategy officer; Geralyn R. Breig, senior vice president and president, North America; Jeri B. Finard, senior vice president, global brand president.
Major Products: Color cosmetics—Avon Color and Beyond Color; Skin care—Anew; Bath and body—Naturals and Skin-So-Soft; Hair care—Advance Techniques; Fragrances; Mark.
New Products: Avon—Anew Reversalist, Glossy Delight Lip Juice, Carlos Falchi color collection, U By Ungaro color collection, MagiX Cashmere Finish Foundation, Frizz Control Lotus Shield Anti-Frizz Treatment, Outspoken fragrance, Haiku 5-Piece Fragrance Gift Collection. Mark—Sophistique Give Me a Ring Solid Fragrance Ring.
Comments: Sales started looking more beautiful for Avon in the fourth quarter of 2009.Total revenue of $3.2 billion was 13% higher than in fourth-quarter 2008, and Active Representatives grew 11% with growth in all regions. Beauty sales in the fourth-quarter of 2009 grew 15%, led by gains in color cosmetics (27%), personal care (19%) and fragrance (11%). Units sold increased 4% in the quarter, and beauty units were up 5% versus the previous year. Revenue growth was broad-based across the direct seller’s geographic portfolio. Western Europe and Central and Eastern Europe regions, together, represented 30% of fourth-quarter revenue, while Latin America contributed another quarter of double-digit growth.
Total revenue for full-year 2009 was not as rosy, as $10.3 billion was 3% lower than that of 2008, due to unfavorable foreign exchange and the depressed global economy. Total beauty sales, which accounted for 72% of corporate sales, were down 3% but up 7% on a local-currency basis. Active Representatives grew 9% with growth in all regions. (Part of Avon’s plan during this difficult time was to attract new representatives with the most massive recruiting campaign in Avon’s history; total reps now number over 6 million.)
Units sold increased by 3% and Beauty units increased by 4% versus the previous year. Revenue was strongest in South America ($4.1 billion), followed by North America ($2.3 billion); Central & Eastern Europe ($1.5 billion); Western Europe, Middle East & Africa ($1.3 billion); Asia Pacific ($885 million); and China ($353 million).
In response to weakened consumer budgets, Avon moved rapidly, increasing a number of units in the under $5 value tier, while continuing to protect its mass and masstige offerings.
Approximately 80% of Avon’s revenue is generated from outside the U. S., so when the economic crisis hit, the company faced additional challenges due to foreign currencies. Just off its effective multi-year restructuring plan, the company put forth a new one, in order to counter new difficulties.
Avon’s claims to have 90% awareness around the globe, and says it sells four lipsticks every second. To maintain this position, Avon has increased its focus on innovation and advertising investment at almost triple the rate of 2005. Success is touted across all categories. Its flagship Avon Color brand, with Reese Witherspoon as Avon’s Global Brand Ambassador, has been repackaged and relaunched. New celebrity partners to the company’s fragrance franchise include Courteney Cox, Fergie, and Zoë Saldana. The Anew skin care brand stands as the No. 1 anti-aging skin care brand in the world.
In 2010, Avon has made a number of announcements, adding products from premium hair care to skin care to fragrance.
In June, the company announced a line of premium hair products with new patent-pending technology that aims to smooth frizz similar to a salon treatment. The product, called Advance Techniques Frizz Control Lotus Shield, coincided with the restage of the existing Advance Techniques line.
In August, the direct seller announced that actress Jacqueline Bisset will represent its new Avon Anew Platinum line, a new skin care system developed for women 60 years old and over.
New York, NY
www.avoncompany.com
Beauty Sales: $7.4 billion for cosmetics, toiletries and fragrance
Corporate Sales: $10.3 billion
Key Personnel: Andrea Jung, chairman and chief executive officer; Charles Cramb, vice chairman, chief finance and strategy officer; Geralyn R. Breig, senior vice president and president, North America; Jeri B. Finard, senior vice president, global brand president.
Major Products: Color cosmetics—Avon Color and Beyond Color; Skin care—Anew; Bath and body—Naturals and Skin-So-Soft; Hair care—Advance Techniques; Fragrances; Mark.
New Products: Avon—Anew Reversalist, Glossy Delight Lip Juice, Carlos Falchi color collection, U By Ungaro color collection, MagiX Cashmere Finish Foundation, Frizz Control Lotus Shield Anti-Frizz Treatment, Outspoken fragrance, Haiku 5-Piece Fragrance Gift Collection. Mark—Sophistique Give Me a Ring Solid Fragrance Ring.
Comments: Sales started looking more beautiful for Avon in the fourth quarter of 2009.Total revenue of $3.2 billion was 13% higher than in fourth-quarter 2008, and Active Representatives grew 11% with growth in all regions. Beauty sales in the fourth-quarter of 2009 grew 15%, led by gains in color cosmetics (27%), personal care (19%) and fragrance (11%). Units sold increased 4% in the quarter, and beauty units were up 5% versus the previous year. Revenue growth was broad-based across the direct seller’s geographic portfolio. Western Europe and Central and Eastern Europe regions, together, represented 30% of fourth-quarter revenue, while Latin America contributed another quarter of double-digit growth.
Total revenue for full-year 2009 was not as rosy, as $10.3 billion was 3% lower than that of 2008, due to unfavorable foreign exchange and the depressed global economy. Total beauty sales, which accounted for 72% of corporate sales, were down 3% but up 7% on a local-currency basis. Active Representatives grew 9% with growth in all regions. (Part of Avon’s plan during this difficult time was to attract new representatives with the most massive recruiting campaign in Avon’s history; total reps now number over 6 million.)
Units sold increased by 3% and Beauty units increased by 4% versus the previous year. Revenue was strongest in South America ($4.1 billion), followed by North America ($2.3 billion); Central & Eastern Europe ($1.5 billion); Western Europe, Middle East & Africa ($1.3 billion); Asia Pacific ($885 million); and China ($353 million).
In response to weakened consumer budgets, Avon moved rapidly, increasing a number of units in the under $5 value tier, while continuing to protect its mass and masstige offerings.
Approximately 80% of Avon’s revenue is generated from outside the U. S., so when the economic crisis hit, the company faced additional challenges due to foreign currencies. Just off its effective multi-year restructuring plan, the company put forth a new one, in order to counter new difficulties.
Avon’s claims to have 90% awareness around the globe, and says it sells four lipsticks every second. To maintain this position, Avon has increased its focus on innovation and advertising investment at almost triple the rate of 2005. Success is touted across all categories. Its flagship Avon Color brand, with Reese Witherspoon as Avon’s Global Brand Ambassador, has been repackaged and relaunched. New celebrity partners to the company’s fragrance franchise include Courteney Cox, Fergie, and Zoë Saldana. The Anew skin care brand stands as the No. 1 anti-aging skin care brand in the world.
In 2010, Avon has made a number of announcements, adding products from premium hair care to skin care to fragrance.
In June, the company announced a line of premium hair products with new patent-pending technology that aims to smooth frizz similar to a salon treatment. The product, called Advance Techniques Frizz Control Lotus Shield, coincided with the restage of the existing Advance Techniques line.
In August, the direct seller announced that actress Jacqueline Bisset will represent its new Avon Anew Platinum line, a new skin care system developed for women 60 years old and over.