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    AVON Started Its "Full Channel Retail" Sales Representative, Still The Top Priority Of The Growth Plan.

    2017/5/3 9:47:00 117

    AVONNew Product ReleaseBrandRetail

      

    Avon

    In 1990, it entered the Chinese market. As the first old international giant to get a direct selling license in China, it used to play a leading role in the direct selling mode, and became a well-known brand in many Chinese "70" and "post-80s" hearts.

    AVON China completed its sales of 2 billion 400 million yuan at its peak in 2003.

    However, as the direct selling mode was hit by the retail industry in the US and the competition in the cosmetic market was fierce, AVON sold its 80% stake in the US area business in 2015 to Cerberus Capital Management, a private equity fund.

    After that, it continued to shrink its expenses, adjust its strategy, and withdraw from the Korean, Vietnamese and Irish markets in a series of rounds of layoffs, and moved its headquarters from New York to Britain.

    In the Chinese market, AVON has also experienced an awkward situation.

    As more and more foreign brands are stationed in China, and AVON has been declining in the US, it has been repeatedly reported in China.

    Since 2010, AVON's performance in China has started to decline. During the period 2011~2014, AVON's sales volume was 1 billion yuan, 700 million yuan, 600 million yuan and 350 million yuan in turn.

    Influenced by the bribery scandal in 2010, Gao Shoukang, President of the Greater China region, who led the AVON 12 years in China, was suspended. After that, many of the executives dropped from the market to accept the "four acclimatization" of the Chinese market.

    Compared with Yu Yafang's frequent replacement, MaryKay, the rival company, has served as the president of China since he was 1998 years old.

    In direct selling and

    retail

    After several years of wandering between models, AVON began to carry out "full channel retail": including online stores, specialty stores and retail stores of daily chemicals.

    At present, AVON has 45 stores in two or three cities, such as Shijiazhuang and Hefei.

    Recently, AVON has also upgraded the store. The new store has set up a customer experience area to carry out skin inspection, and the overall store has also been improved in decoration and design.

    On the other hand, AVON has opened up a membership system for offline and Tmall flagship stores.

    From the shopping experience, AVON set up a one-stop customer service center, hoping to optimize the consumer experience through this way.

    In March of this year, AVON launched a new series of "new live whitening and moistening" products in China. From the official website information, this series contains 8 SKU.

    Avon

    It is a rare new product in recent years.

    Unlike previous publicity methods, AVON launched a new social marketing approach, which is popularized by videos, and launched by H5, an official WeChat public account, which is more concerned by young consumers.

    Zhang Xuming, general manager of AVON Greater China, said that through this brand new product launch, AVON will also open a new chapter.

    At present, AVON is trying to impress young people with "cost performance" and "service".

    However, in the popular cosmetics category, AVON faces not only MaryKay, its long-standing competitor, but also Korean brands, CHCEDO and peravia, which have made a lot of domestic brands in marketing advertisements, as well as cosmetic companies such as Shiseido that have started to focus on cosmetics in recent years, and the competition pressure should not be underestimated.

    For a series of innovation plans launched by AVON in the Chinese market this year, Bai Yun Hu, the senior beauty consultant and general manager of Shanghai Yuet makeup Mdt InfoTech Ltd, said in an interview with Beijing Business Daily reporter that whether it is upgrading the store image or restarting membership system, AVON is not the key to AVON's reintegration in China.

    The key to AVON's rebirth lies in the improvement of brand power and the remolding of brand image.

    This goal can not be achieved overnight, and AVON's brand innovation will take time.

    From the financial data, AVON's latest earnings report for the fourth quarter of last year showed that Avon Co's total revenue fell 2.4% to 1 billion 570 million dollars during the reporting period, lower than expected, which is AVON's four consecutive year's performance decline.

    In 2016, the group's total revenue was $5 billion 718 million, down 7.2% from the same period last year, and the net loss was reduced from $1 billion 148 million 900 thousand to $107 million 600 thousand.

    Earnings report pointed out that in 2016 as

    Avon

    In the first year of the three year pformation plan, the group made better progress in cost cutting, increasing profit margins and strengthening the balance sheet. The goal of reducing the cost of 350 million dollars in three years has already achieved 120 million dollars.

    For fiscal year 2017, Avon Co CEO Sheri McCoy said the group is taking action to improve the performance of all markets, and sales representatives are still the top priority of the growth plan.

    For more information, please pay attention to the world clothing shoe and hat net information report.

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