05.29.15
The vultures are circiing. With the “company for women” struggling, these three startups are hoping to take a big bite of the direct-sales beauty market. In fact, Fortune has ID'd three companies that are positioned to take advantage of Avon's major missteps.
The first is Ever Skin Care, a new line of direct sales skin care from Stella & Dot. Company founder Jessica Herrin says she leverages social media and mobile technology to make the direct sales model work for today's busy lifestyles.
Beautycounter calls itself a “direct retail” company because its products are available through a network of nearly 8,000 consultants, as well as via its website and strategic partnerships with companies like JCrew and Goop.
Finally, there's Rodan & Fields, which debuted in 2008. Founded by dermatologists Katie Rodan and Kathy Fields in an attempt to do for anti-aging products what Proactiv did for acne-fighters. Last year, the company’s sales reached more than $320 million.
But $320 million isn't $8 billion. While all three companies will grab a larger slice of the beauty pie, the bet here is that direct sales stalwarts like Mary Kay and Amway will get the lion's share of Avon defectors.
The first is Ever Skin Care, a new line of direct sales skin care from Stella & Dot. Company founder Jessica Herrin says she leverages social media and mobile technology to make the direct sales model work for today's busy lifestyles.
Beautycounter calls itself a “direct retail” company because its products are available through a network of nearly 8,000 consultants, as well as via its website and strategic partnerships with companies like JCrew and Goop.
Finally, there's Rodan & Fields, which debuted in 2008. Founded by dermatologists Katie Rodan and Kathy Fields in an attempt to do for anti-aging products what Proactiv did for acne-fighters. Last year, the company’s sales reached more than $320 million.
But $320 million isn't $8 billion. While all three companies will grab a larger slice of the beauty pie, the bet here is that direct sales stalwarts like Mary Kay and Amway will get the lion's share of Avon defectors.