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Should you join Avon? (full review)
All-around cosmetic giant Avon Products is the largest direct seller of cosmetics in the world.
Famous for cosmetics, the company now also features a fashion & home division. Their products continue to compete with the best in the beauty industry (see: Younique, Forever Living, Arbonne) and the company hasn�t shown any signs of slowing down.
So have I been involved?
This video explains:
All good? Let�s continue�
Avon Products has been around for longer than most people think the cosmetics industry has even existed. This year marks their 130th year in business and oh what a long and exciting road it�s been.
From their roots as the California Perfume Company in 1886 to the meteoric rise and prosperity under founder David H.McConnell and what Avon Products has become today, one thing has always stood true for this company: it�s all about women.
Indeed, their motto is �The Company for Women�.That�s not to say, however, that there aren�t any men involved.There are even some male distributors of Avon products.
They donate heavily to women�s causes, most notably breast cancer research.The Avon Foundation for Women is the largest corporate philanthropy that focuses on women�s causes in the world.Through the end of 2012, the foundation had given out more than $910 million around the world.
Here are few of the admirable ways in which this company fulfills its (very strong) sense of corporate social responsibility:
their Speak Out Against Domestic Violence
the Avon Breast Cancer Crusade
the Avon Walk for Breast Cancer
the Kiss Goodbye to to breast Cancer
their donations to World Food Program for typhoon survivors in 2014
their donation to the United Way of Central Oklahoma May Tornadoes Relief Fund in 2013
their donations to help rebuild after Hurricane Sandy
many more examples: earthquake relief in Haiti, Hurricane Katrina, 2008 earthquake in China etc
Avon Yellow Ribbon pin sales to help military families
As recently as 2012, the company almost suffered a hostile takeover. This occurred despite their dominating the direct selling world as number two on the DSN Global 100. Only Amway is larger than Avon Products, whose 2014 net sales were $8.90 billion (Amway�s were $11.90 billion that same year).
The takeover that hit the news so heavily in 2012 was initiated by Coty, a German fragrance company not many people have heard of. Coty manufactures and markets perfumes under celebrity names, which is why the name is not very recognizable. The company offered a stock price at 20% higher than the then-current price of Avon�s stock (AVP � NYSE) but Avon delayed until the deal fell through. Warren Buffett even got in on the deal but as of this writing nothing has happened so far.
The have had a huge shakeup in management, after years of sub-par management under CEO Andrea Jung. Avon hasn�t fired her, but rather made her co-head of the company after hiring Sheri McCoy as the new CEO. Ms. McCoy used to run a major portion of Johnson & Johnson and she was ranked the 10th most powerful business women in 2011 (well Jung was number six!). It�s probably the wise move of hiring the new CEO that made Avon resistant to takeover (for the time being).
In the meantime, Avon surges forward, selling in 100 markets, employing over 33,000 employees and 6 million distributors world wide. They now offer technology-based products, competing with the finest cosmetic brands in the world. Their ANEW skincare line has national (if not international) brand recognition and is widely respected as a product. And if you haven�t heard of ANEW, perhaps you�ve heard of Skin-So-Soft? It�s widely used as a gentle yet effective bug repellent.
Avon is still sold primarily door-to-door. It�s not unusual for many of my neighbors to come home and find an Avon catalog slipped under their door or place on their welcome mat.
In China, one of Avon�s largest markets, there are Beauty Boutiques. These are actual brick-and-mortar establishments selling Avon products. These exist as a holdover from the brief couple of years (1998 to 2001) during which China had actually outlawed direct selling. Avon was granted a direct selling license (the first ones ever!) so they�re good to go now in China.
That�s good, because Avon has been in China for a quarter of a century. Despite rumors they�re leaving because of slagging sales, Avon continues to consider China a very important market for its products. Avon�s total direct sales in that country accounted for 8% of total skincare spending. 8% of Chinese families use Avon. Their big competition there is Mary Kay Inc and Amway.
Products in general are reasonably priced but cost slightly more than similar products you�ll find in drugstores. Products range from cosmetics to the following:
fashion panties (the current �Love Your Curves� campaign is wonderful)
decorative home products
There are two ways to earn money:
#1. Product Sales.
Distributors sell from �campaigns�, which usually last around 2 weeks. The more you can sell off that campaign brochure, the less you pay for the products. That means your commissions go up as you sell more�and you get to try again every two weeks.
Your first campaign as a distributor nets you a 40% commission on core products and 20% on others. After that, your commission depends on how much you sold in the previous campaign, ranging from 20% to 50%.
# 2. Team Commissions
The more reps you sign up and the more successful they are, of course, the more you make. Become a Unit Leader by acquiring at least 4 new reps under your wing, and reaching a group sales volume of $1,000 or more. Earn 1%-5% on all your first generation sales and 1% on second and third generation.
Everyday, Avon brings beauty to the lives of women all over the world. At Avon, beauty means finding the right lipstick shade for a customer; providing an earnings opportunity so a woman can support her family; and enabling a woman to get her first mammogram. Beauty is about women looking and feeling their best. It's about championing economic empowerment and improving the lives of women around the world. Avon is the company that stands for beauty, innovation, empowerment & above all for women.
On the official YouTube Channel for Avon USA you'll find videos highlighting the newest Avon products, as well as beauty tutorials and even information on how to become an Avon Representative. Our makeup, skin care, hair care, fragrance, and anti-aging products help women all over the world look and feel their best. Subscribe today to stay up to date on the latest trends in lipstick, mascara, eye shadow, nail polish, skin care, and more.
Avon may refer to: River Avon (disambiguation), several rivers
Rolls-Royce Avon, a jet engine