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    Top Companies Report

    24. New Avon

    ...

    24. New Avon
    New Avon
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    Happi Staff07.01.20
    New York, NY
    www.about.avon.com
    Sales: $600 million
    Note: $600 million (estimated) for the nine months ended September 30, 2019

    Major products: Color: Avon Makeup Collection, Avon Naturals and Footworks. Skin Care: Anew, Anew Clinical, Anew Genics, Clearskin Professional Care and Avon Solutions. Fragrances: Outspoken and Outspoken Intense by Fergie, Derek Jeter Driven and Derek Jeter Black, Hervé Léger Homme, Far Away, Today, Tomorrow for Her, Haiku Eau

    Comments: This is the last year that New Avon will appear in The Top 50, as the company was acquired by LG last year for just $125 million. The deal closed in September. At the time of the acquisition, LG expected to use Avon’s North American network to introduce Korean beauty products to a new consumer. LG H&H already distributes a number of its brands in the US, including Belif and The History of Whoo.

    Under LG H&H’s ownership, Avon North America will continue its strategy of product innovation, while strengthening its position as the leading social selling beauty company in the region. Avon North America is expected to benefit from LG H&H’s world-class R&D capabilities in cosmetics, personal care, fragrance, packaging and design.

    “We recognize Avon North America’s strong brand, leading market position in the region, and talented employees and Representatives,” explained LG H&H CEO Suk Cha in a release. “Avon North America’s innovative social selling model builds deep connections with customers and we are excited to leverage this as we continue to expand. We look forward to building on Avon North America’s success to drive customer engagement and long-term growth in this market.”

    Things are looking up. In April, about one year since LG announced its plan to purchase the company, Avon launched a mobile-first version of its product catalog, which incorporates YouCam’s AR technology. LG expanded Avon’s product portfolio to include more personal care and household cleaning items, and added its existing beauty brands, like The Face Shop and Belif, to the new catalog and mobile-friendly website.

    Finally, New Avon introduced a new incentive structure and a free signup for representatives. The idea is catching on. According to a Glossy article, April signups rose 375%, year-over-year. New representatives are coming in through referrals, recruitment advertising on Instagram and Facebook, and unpaid social posts.
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