Online Exclusives

Avon Eyes White Space in Beauty

By Christine Esposito, Associate Editor | February 19, 2010

Direct seller will also utilize internet platform to build representatives� businesses.

Coming off a year in which it delivered “standout results” in a tough economic environment, Avon wants to drive continued top line growth in 2010—and Chuck Cramb, vice chairman, CFO and chief strategy officer, told attendees at the CAGNY 2010 conference how the firm plans to do so.

Speaking in Boca Raton, FL, Cramb reviewed Avon’s success in 2009 and provided a glimpse at some of its plans for 2010, which include pursuit of “white space” areas within beauty and increased utilization of internet-based technologies and social networking.

As examples, Cram pointed to possible expansion of the Anew brand’s anti-aging offerings into color cosmetics and personal care sectors as well greater emphasis on hair care,a business that accounted for just 5% of Avon’s total CFT sales in 2008.

In hair care, Avon has had recent success in Latin America; in the third quarter of 2009 it launched Advance Techniques, a new hair color product, and sold 9 million units by the close of the year, Cram noted.

In terms of expansion, Avon is also looking to outside its core beauty sector for growth and is “reshaping its non-beauty” offerings.For example, the firm is planning a global rollout of its a reorganized/harmonized jewelry line.In addition, Cram suggested the firm may also streamline non-beauty offerings, with potential category exits in home cleaning, appliances and entertainment and leisure to make room for greater focus on hair care, personal care, and “category adjacencies.” Opportunities may include men’s, sun products and health and nutrition, according to Cram.

 
Advance Techniques is a big hit in Latin America.
Another 2010 initiative at Avon is continued expansion of its global Internet platform. Rolled out to four markets in the third quarter of 2008, Avon had 59 markets up and running by the end of 2009 and its goal is to have all 65 markets active by he third quarter this year.

According to Cram, with its core internet platform in place, Avon is also adding functionality aimed at enhancing representative productivity, including the addition of online ordering and product availability verification—cited as “a big change for us,” by Cram—as well as integration social networking websites that allow representatives to integrate Avon content—while adding customer “stickiness” for the company.

“If you think about, Avon is the original social network,” Cramb told attendees. “We are high touch, and if we combine that with high technology, we have the ability to help a representative expand her business.”




Related End-User Markets:

blog comments powered by Disqus
  • Innovation On Display

    Melissa Meisel, Associate Editor||February 3, 2016
    P&G Beauty Digital Studio showcases new products for 2016

  • Burgeoning Beauty

    Burgeoning Beauty

    Melissa Meisel, Associate Editor||January 4, 2016
    A look at trailblazers for 2016 and beyond.

  • Testing for Sustainable Preservatives

    Adam P. Byrne, William Michael Hart-Cooper, Kaj Johnson, Larry H. Stanker, Dominic W. S. Wong, William J. Orts||January 4, 2016
    A rapid, inexpensive and qualitative protocol for determining microbial growth inhibition.

  • Buy the Sea, Buy the Sea, Buy the Beautiful Sea

    Buy the Sea, Buy the Sea, Buy the Beautiful Sea

    Tom Branna, Editorial Director||February 9, 2016
    Nova Scotia Fisherman makes a boatload of products that contain sea kelp and a raft of natural ingredients.

  • What

    What's on Tap for 2016?

    Nancy Jeffries, Contributing Editor||February 8, 2016
    CEW and NPD present their beauty industry review and preview.

  • Witch

    Witch's Brew: Dickinson's celebrates milestone in 2016

    Christine Esposito, Associate Editor||February 1, 2016
    Dickinson’s celebrates 150 years of witch hazel skin care with the biggest line expansion in the company’s history.

  • From Research to Retail

    Tom Branna, Editorial Director||February 1, 2016
    What began as research on skin disorders led a dermatologist and his father to create their own skin care formulas.

  • 5 Things I Learned

    5 Things I Learned

    January 15, 2016
    The Avon & Women’s Dermatologic Society Mentorship Program. Dr. Sabrina Fabi (left) and Dr. Kimberly Jerdan.

  • Perfect Timing

    Perfect Timing

    Tom Branna, Editorial Director||January 11, 2016
    New ways of collecting data can help cosmetics companies understand what women really want—and when they want it.

  • When a Cosmetic Becomes a Drug

    When a Cosmetic Becomes a Drug

    Jacqueline Sheridan, Dinsmore & Shohl LLP||January 11, 2016
    The unintentional conversion of personal care products through marketing.

  • Africa, Rising

    Africa, Rising

    December 14, 2015
    Savvy marketers should expand their operations on the continent, according to speakers at a WFFC seminar.

  • Color, Your World

    Color, Your World

    December 7, 2015
    A kaleidoscope of concepts was the conversation at a recent NYSCC symposium.

  • A Home of One’s Own

    A Home of One’s Own

    Christine Esposito, Associate Editor||November 23, 2015
    NeoStrata’s Exuviance has opened its first freestanding retail space, complete with on-site skin analysis and express treatment rooms.

  • Hitting a Wall(mart)

    Hitting a Wall(mart)

    November 9, 2015
    Walmart imposes slotting fees and that hurts a lot of Tier 2 and 3 FMCG companies.

  • That’s Quite an Achievement!

    That’s Quite an Achievement!

    Nancy Jeffries, Contributing Editor||November 2, 2015
    The CEW honors seven beauty industry leaders.

  • What

    What's Not to Love?

    Tom Branna, Editorial Director||October 26, 2015
    The sun care category is rife with issues, but there’s a lot to like about it.

  • Sharp Competition

    Sharp Competition

    Christine Esposito, Associate Editor||October 26, 2015
    800Razors.com signs a high-profile athlete to promote its growing direct-to-consumer razor and personal care business.

  • About a Boy

    About a Boy

    Christine Esposito, Associate Editor||October 19, 2015
    As a mom, Jenny Cupido wanted to solve her son’s skin issues. Now she’s raising an indie beauty brand too.

  • For Their Own Good

    For Their Own Good

    Christine Esposito, Associate Editor||September 29, 2015
    With a rich heritage and recognized formulation expertise, FC Sturtevant Company is moving into the consumer marketplace.

  • A Foothold in Foot Care

    A Foothold in Foot Care

    Christine Esposito, Associate Editor||September 22, 2015
    Treating feet right is the heart and soul of one Brooklyn-based company.

  • SK-II to the Rescue

    SK-II to the Rescue

    September 8, 2015
    A new formula targets microRNA, which a P&G researcher insists plays a key role in skin aging.

  • A Panoramic View

    A Panoramic View

    Jeremy Kerstetter, Assistant Editor||September 7, 2015
    ZSS takes a 360° approach to skin health.

  • It

    It's All in the Delivery

    Jeremy Kerstetter, Associate Editor||August 31, 2015
    AlureVé relies on pharmaceutical technology for its anti-aging skin care line.

  • A Brand of Its Own

    A Brand of Its Own

    Christine Esposito, Associate Editor||August 24, 2015
    Amyris creates its own skin care solution for consumers.

  • Eye on Korea

    Eye on Korea

    August 17, 2015
    At the Personal Care Conference in Shanghai there was distinct emphasis on beauty ideas from Korea.

  • No Coasting Here

    No Coasting Here

    August 12, 2015
    A Q&A with Coast Southwest CEO Joseph Cimo.

  • Game Face

    Game Face

    Christine Esposito, Associate Editor||August 3, 2015
    Meet the team behind Sweat Cosmetics, a new line of makeup built for more than a walk in the park.

  • Freedom To Formulate

    Freedom To Formulate

    Christine Esposito, Associate Editor||July 27, 2015
    What happens when you remove typical business constraints and let one of the industry’s leading chemists loose to formulate the best anti-aging product? Skyler Brand Ventures knows the answer.