AVON and Globalization

Why is Avon so much more dependent on its foreign operations than on its home (U.S.) operations? (Daniels, 2010)

Avon Products is the world’s top direct seller of cosmetics and similar items, with direct sales remaining its main method of distribution to customers (Colbert, 2011). At last count, Avon had approximately 6.2 million independent representatives worldwide and sales and distribution operations in more than 100 countries and territories (Colbert, 2011).

According to the textbook case study, the main reason is due to the market in the United States for cosmetics are very mature, not to mention extremely competitive. Because of this, Avon made the decision to put its emphasis – and resources – in less-competitive markets. (Daniels, 2010)

Another reason is because fewer women in the United States are as receptive to Avon’s direct sales method as they once were. Furthermore, the pool of part-time job-seekers – in other words, those who are willing to sell Avon door-to-door, is also drying up in the United States. This is not the case in other parts of the world, however, which is why Avon is focusing on these particular areas. What’s interesting, however, is noting the difference in distribution in some of the countries – Japan, for example, enjoys a huge mail-order business while Avon has beauty centers in Argentina.

Discuss socioeconomic and demographic changes that could affect Avon.(Daniels, 2010) Cosmetics are a luxury, though it was said during the 1930s Great Depression that sales of lipstick went through the roof. For example a tube of lipstick was a small and affordable indulgence. However, very poor women was not going to take the time – or effort – to focus on cosmetics. However, a growing middle class ...

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Works Cited

Avon Products Inc. (2010, June). Datamonitor. Retrieved 2011, January 29 from EBSCOHost Database.

Colbert, Catherine (2011). Avon Products Inc. Hoovers Business Research. Retrieved 2011, January 29 from Proquest Database.

Colbert, Catherine (b) (2011). Mary Kay Inc. Hoovers Business Research. Retrieved 2011, January 29 from Proquest Database.

Daniels, John (2010). International Business: Enviroments and Operations 13e. pg 620-625. New Jersey. Pearson Education Inc.

Mortimer, Ruth (2009, May 21). Avon calling for a new generation. Marketing Week, 27-28.

Swanson, Erin (2010, November 8). Avon Products. Morningstar Investment Research Center. Retrieved 2011, January 29 from http://library.morningstar.com/stocknet/MorningstarAnalysis.aspx?Country=USA&Symbol=AVP.