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    Top Companies Report

    13. Avon

    ...

    13. Avon
    Avon Products
    08.03.20
    United Kingdom
    www.avonworldwide.com
    Sales: $3.6 billion

    Note: $3.6 billion for cosmetics. Corporate sales: $4.7 billion

    Key personnel
    Roberto Marques, executive chairman, Natura &Co

    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


    New products
    Anew Skin Reset Plumping Shots, Green Goddess Facial Oil, Cashmere Complexion Foundation

    Comments: In May, Natura &Co acquired Avon in a deal that it maintains creates the fourth largest beauty company in the world. Avon joined a group that includes Natura, The Body Shop and Aesop. Together, they reach more than 200 million consumers worldwide through multiple channels. The group will have annual sales of $10 billion, 6.3 million representatives and consultants, 3,200 stores and a presence in more than 100 countries, according to Natura.

    Under the terms of the agreement, Natura holds 76% of the combined business. Natura already controls 31% of the Brazilian cosmetics market; prior to the acquisition, Avon held a 16% share. Natura said the deal could result in as much as $250 million in annual savings. Maybe, but it’s probably more important for Avon to get growing again.

    Last year, corporate sales fell 15%. By region, sales in Europe, Africa and the Middle East fell 14% to less than $1.79 billion. The company blamed the decline primarily on lower sales in Russia (-17%) and the UK (-16%). Sales in South Latin America fell 18%, due to lower sales in Brazil (-18%) and Argentina (-23%). Sales in North America, primarily Mexico, fell 7% to $751 million. Sales in Asia Pacific also dropped 7% to about $437 million.

    This year, Avon launched Anew Skin Reset Plumping Shots. The formula contains something called Protinol, which is said to restore both types of collagen found in healthy skin, helping to mimic the collagen equilibrium found in baby skin, according to Avon. Used over seven days, these single-use shots are said to have the maximum concentration of the patented Protinol technology to restore seven years of collagen loss in just seven days.

    In May, Avon joined the fight against COVID-19 by mobilizing its research and development, sourcing and supply chain networks to expedite hand sanitizer production. The company is producing more than 3 million units to distribute around the world. 
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