Avon unveils new strategy to accelerate growth
Direct-selling beauty company Avon Products, Inc. has announced a new long-term strategy to “Open Up Avon” and return to growth, focusing on positioning the company to capture strategic opportunities, rebooting its sales model and developing its digital capabilities.
The plan, which was revealed at Avon’s Investor Day on September 21, aims to accelerate the company’s revenue and margin growth by 2021, continuing and consolidating the initiatives already implemented by the company over the last eight months.
The strategy focuses on modernizing and digitalizing Avon, seeking to make the company more competitive by giving consumers everywhere access to its products at any time. Avon will also be aiming to capture share in areas of fast growth and will actively manage its product portfolio, while encouraging innovation through both in-house initiatives and partnerships.
Another key pillar of the plan centers around recruiting and retaining more brand representatives by increasing their earnings and revising Avon’s training programs, while also fomenting a performance-based culture throughout the company.
This will feed into a wider reboot of the company’s direct-selling model, which will involve segmenting communication and training, as well as bringing new sales talent into key markets.
The company will also be seeking to drive developments in its e-commerce and data capabilities, and will update its brand identity to better capitalize on its global brand recognition. The planned digital expansion will continue the push which saw the appointments of Benedetto Conversano and Heather Payne to the roles of SVP, chief digital and information technology officer, and chief technology officer, respectively, in July.
In order to support the strategy, Avon stated that it would shortly be outlining near-term cost savings and capital investments with a focus on value creation and simplification.
“We have assessed our operations, our markets and value-creating opportunities, and are implementing a plan to make Avon more attractive to beauty entrepreneurs and accessible to more consumers,” explained Avon CEO Jan Zijderveld in a release.
“Avon is grounded by our steadfast commitment to empowering women. Our 'Open Up Avon' strategy will enable us to provide more relevant earnings, contemporary products and meet the dynamic needs of women globally,” he added.
Avon recently announced that it would be cutting 100 jobs in New York as part of ongoing efforts to streamline its business.
The company reported a loss of $36.1 million in the last quarter, with revenues decreasing 3% to $1.35 billion.
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