Top Companies Report

4. Avon

July 11, 2011

New York, NY


Sales: $7.7 billion


$7.7 billion for cosmetics, toiletries and fragrances. Corporate sales: $10.8 billion. Net income: $590 million.

Key Personnel:

Andrea Jung, chairman and chief executive officer; Charles Cramb, vice chairman, developed market group; Charles M. Herington, executive vice president, developing market group; Lucien Alziari, senior vice president, human resources & corporate responsibility; Geralyn R. Breig, senior vice president; Bob Briddon, senior vice president and president, Asia Pacific; Jeri B. Finard, senior vice president, global brand president; Nancy Glaser, senior vice president, global communications; Donagh Herlihy, senior vice president and chief information officer; John Higson, senior vice president, global commercial operations; Jorge Martinez Quiroga, senior vice president and president, North America; Srdjan Mijuskovic, senior vice president and president, Central and Eastern Europe; Kimberly A. Ross, executive vice president and chief financial officer; Anna Segatt, senior vice president and president, Western Europe, Middle East and Africa; John F. Owen, senior vice president, global supply chain; Kim Rucker, senior vice president, general counsel and corporate secretary; Mike Schwartz, senior vice president, global insights and marketing intelligence.

Major Products:

Color Cosmetics—Avon Color, Jillian Dempsey Professional, Smooth Minerals and Anew Beauty; Skin Care—Anew; Fragrance—In Bloom by Reese Witherspoon, Outspoken by Fergie and Patrick Dempsey Unscripted; as well as fragrances through special partnerships with designers Christian Lacroix, Herve Leger and Ungaro; Personal Care—Avon Skin-So-Soft; Avon Naturals; Hair Care—Advance Techniques; Mark; Liz Earle.

Platinum Serum is an addition to the Anew line.

New Products:

Skin Care—Anew Platinum, Serum, Anew Luminosity-Pro Serum, Advance Technique Lotus Shield; Sun Care—Anew Solar Advance with RepairShield Technology; Color Cosmetics—UCR Mega Impact Lipstick, Super Extend Mascara, Sonic Boost Vibrating Mascara, Pro Color & Gloss Lip Duo, Healthy Makeup, Matte Nail Enamel;Fragrance—Outspoken and Outspoken Intense by Fergie. To be launched: New skin care range (Q4 2011).


Corporate sales rose 6% last year, thanks in large part to a 4% increase in the number of active representatives. The acquisitions of Silpada and Liz Earle also provided a lift in corporate sales.

Beauty accounted for 71% of sales last year (down from 72% in 2009 and 2008), followed by fashion (19%) and home (10%). Beauty sales rose 6%, led by an 11% increase in fragrance sales, as well as a 7% gain in color cosmetics sales and a 5% rise for personal care. However, skin care sales fell 3%.

The gain in fragrance was attributed to the launch of Outspoken by Fergie, which became the biggest fragrance introduction in Avon history. On the other hand, the decline in skin care sales has Avon working overtime to boost sales. Therefore, in developing markets Avon launched Avon Care, a comprehensive line of skin care and body products. Elsewhere, Avon Solutions was revamped with new formulas and packaging. Earlier this year, Avon launched Anew Solar Advance, which promises to repair visible sun damage. In the fourth quarter, Avon will launch a new skin care product that was inspired by genetic research on longevity.

By region, corporate sales rose 6% in Latin America to $4.1 billion. Sales in North America fell 2% to $2.2 billion; sales in Central & Eastern Europe rose 6% to nearly $1.6 billion; sales in Western Europe, Middle East and Africa jumped 14% to $1.4 billion and sales in Asia Pacific leaped 11% to $752 million. Some of the fastest growing countries and regions for Avon were South Africa (up 82%), India (65%), Central America (16%), Ukraine (12%), Colombia (25%) and the Philippines (15%).

Last year, the number of active representatives grew 4%, down from a 10% gain in 2009. To reenergize its sales staff, Avon has shifted some money away from advertising to field programs that enhance the value proposition for its representatives. For example, in the US, Avon is investing $20 million to improve sales leadership earnings.

For the first quarter of 2011, corporate sales rose 7% to $2.6 billion. Beauty sales jumped 8% with gains in all categories: fragrance (10%), color (6%), skin care (7%) and personal care (8%).

“We are pleased with the early progress against our commitment to return the business to mid-single digit revenue growth and deliver 50-70 basis points of operating margin expansion in 2011,” said Andrea Jung, Avon’s chairman and chief executive officer. “We are squarely focused on restoring growth in Brazil and Russia in the second half, and ensuring execution in gross margin improvement and cost control.”

blog comments powered by Disqus
  • Coming Clean on a Host of Issues

    October 17, 2016
    Cleaning Products Conference is set for Nov. 9-11, 2016 in Washington DC.

  • Let the Magic Begin!

    Let the Magic Begin!

    Tom Branna, Editorial Director||October 10, 2016
    IFSCC Congress gets underway at Walt Disney World this month.

  • Ogee Opens for Business

    Ogee Opens for Business

    Christine Esposito, Associate Editor||October 10, 2016
    Banking on the power of jojoba oil, a Vermont-based start-up is the newest player in organic luxury skin care.

  • Change Is in the Air

    Change Is in the Air

    Doreen Wang, BrandZ ||October 3, 2016
    Technology is changing the personal care market

  • Skin Care of One’s Own

    Skin Care of One’s Own

    Christine Esposito, Associate Editor||October 3, 2016
    Nu Skin’s ageLOC Me—which melds the worlds of smart-phone technology, efficacious ingredients and personalization

  • Proof Positive

    Proof Positive

    Christine Esposito, Associate Editor||October 3, 2016
    Testing service providers enable companies to back up their claims and stay in compliance with regulations.

  • Back to School

    Back to School

    Tom Branna, Editorial Director||September 1, 2016
    It may be September, but class was in session this summer during the Private Label Manufacturers Association’s Executive Educ

  • What

    What's In Your Formula?

    Christine Esposito, Associate Editor||September 1, 2016
    A look at the ingredients beauty brands are using to fuel their formulations and capture consumers’ attention.

  • How Green Is Your Surfactant?

    How Green Is Your Surfactant?

    Tom Branna, Editorial Director ||September 1, 2016
    Suppliers offer a range of solutions to help household and personal care product formulators develop formulas

  • Special Effects

    Special Effects

    Melissa Meisel, Associate Editor||August 1, 2016
    Fall 2016 color cosmetics reflect light and offer a focus on elements like pigment, slip and wear.

  • Works of Art

    Works of Art

    Tom Branna, Editorial Director||August 1, 2016
    These suppliers know that the container can be just as important as the juice to entice luxury shoppers.

  • Sustainability is Omnipresent

    Sustainability is Omnipresent

    Christine Esposito , Associate Editor||July 1, 2016
    Industry stakeholders convene in New York City for Organic Monitor’s annual event

  • Perceived Perfection

    Perceived Perfection

    Christine Esposito, Associate Editor||July 1, 2016
    From primers to pressed powders, facial cosmetics help create the illusion of a flawless complexion.

  • Preserve & Serve

    Preserve & Serve

    Melissa Meisel , Associate Editor||July 1, 2016
    Suppliers with innovative preservatives provide staying power for formulations.

  • Quaternized Guar Is a Natural Solution

    Quaternized Guar Is a Natural Solution

    Tom Schoenberg, Schoenberg Consulting||July 1, 2016
    The polymer has applications in a range of skin and hair care formulas that does not build up on hair with repeated use

  • Take Notice

    Take Notice

    Melissa Meisel , Associate Editor||June 1, 2016
    Packaging trends revolve around trendy artwork, eco-conscious materials—and portability is a plus too!

  • Virtual Reality

    Virtual Reality

    Christine Esposito, Associate Editor||June 1, 2016
    An update on nature-identical ingredients for cosmetics and personal care products.

  • Shiseido Advances in the US

    Shiseido Advances in the US

    Tom Branna, Editorial Director||June 1, 2016
    New facility in Windsor, NJ demonstrates its dedication to the US and other markets outside Japan.

  • Get Smart About Your Big Data

    Get Smart About Your Big Data

    Christine Esposito, Associate Editor||June 1, 2016
    Experts at the IRI Growth Summit explain how to make personal connections with customers.

  • For the Love of Lipids

    For the Love of Lipids

    Tom Branna, Editorial Director||June 1, 2016
    AOCS and SCC to deliver a program geared to cosmetic chemists of the important role that fats and oils play in a healthy skin

  • April in Paris

    April in Paris

    Tom Branna, Editorial Director||June 1, 2016
    In-Cosmetics sets attendance record in its return to the City of Light.

  • Salon Selectives

    Salon Selectives

    Tom Branna, Editorial Director||June 1, 2016
    The inside story about what stylists think about the state of the industry and the state of your products and ingredients.

  • Boxed Out?

    Boxed Out?

    Tom Branna, Editorial Director||May 2, 2016
    Salon sales outpace mass-market results in the highly competitive, highly fashionable and yes, highly-colorful hair color cat

  • That’s Awesome!

    That’s Awesome!

    May 2, 2016
    Extracts & Ingredients highlights the newest ideas in efficacious oils for the personal care market.

  • Wacker Builds on Its Success

    Wacker Builds on Its Success

    Tom Branna, Editorial Director ||May 2, 2016
    The silicone maker had a good 2015 and expects the gains to continue in 2016, driven, in part, by success in the Americas and

  • I Want It All

    I Want It All

    Melissa Meisel , Associate Editor||May 2, 2016
    Skin care moves beyond the basics with pampering formulations with unique components and novel functions.

  • Bite Now

    Bite Now

    Christine Esposito, Associate Editor||May 2, 2016
    Is the time finally right for beauty-from-within to move into the mainstream?

  • The New Spot For Acne Care

    The New Spot For Acne Care

    Tom Branna, Editorial Director||April 1, 2016
    Acne Treatment Research Center opens in Morristown, NJ.