Avon Products Inc. - statistics & facts
Since Avon’s founding in 1886, the company has grown into a worldwide cosmetics and beauty staple. The firm’s approach of contracting self-employed sales representatives created passionate advocates around the world and led to Avon now being established in over 100 countries. As a matter of fact, worldwide market penetration is essential for cosmetic giants, since more than half of the global market now lies outside of the traditional revenue sources of North America and Europe.
However, due to its involvement in several talc lawsuits, Avon Products' U.S. business filed for bankruptcy in 2024. While the company's operational business will not stop, as well as its international operations, the decline in sales and the recent events make it hard to believe that a comeback could happen anytime soon.
Avon’s role in the direct selling business
Riding the wave of entrepreneurship among the middle classes, Avon became a social phenomenon during the 20th century and, while it can no longer claim to be the powerful brand it once was, they remain a household name in the 21st century. In 2020, Avon was acquired by the Brazilian company Natura &Co, a leader in the cosmetics market, and turned into a privately held company. The direct selling business model is still very popular nowadays, especially in markets such as the United States and Korea. Natura &Co recently ranked second among the leading direct selling companies worldwide, its most important brands being Natura &Co Latin America and The Body Shop, at least until the latter was sold in November 2023. As far as Avon is concerned, the company has been experiencing significant financial problems in recent years, despite its prominent global image.Is this the decline of a beauty staple?
Between 2011 and 2022, Avon’s total revenue dropped from around 9.23 billion U.S. dollars to around 2.8 billion. Unsurprisingly, Avon’s total operating profits also decreased considerably. In 2023, revenues for Avon International amounted to six billion Brazilian reals. This sharp decline in financial returns has prompted a rethink in the firm’s strategies with the door-to-door approach coming under fire in the age of the internet, which, in recent years, has evolved from just a consumer information source to a retail platform as well. For this reason, many companies are now focusing on online sales channels, including Avon. Recently, the company has been engaged in a process of reinvention, focusing on beauty tech solutions, and extending its omnichannel presence by partnering up with Amazon. Although the company’s e-commerce website was not listed in a 2023 ranking of the leading online beauty stores in the United States, the brand remains one of the most popular among U.S. consumers.However, due to its involvement in several talc lawsuits, Avon Products' U.S. business filed for bankruptcy in 2024. While the company's operational business will not stop, as well as its international operations, the decline in sales and the recent events make it hard to believe that a comeback could happen anytime soon.
