Sales: $3.7 billion for cosmetics. Corporate sales: $5.5 billion.
Key Personnel: Laurie Ann Goldman, chief executive officer; Steve Bosson, chief operating officer; Lance Arneson, chief financial officer; Rick Boyle, vice president, information technology and interim chief information officer; Debbie Coffey, vice president, corporate communications; Liza Maldonado, general manager, Avon Puerto Rico and the Islands; Jackie Marcus, vice president, supply chain; Betty Palm, president, social selling; Goran Petrovic, general manager, Avon Canada; Chip Ross, chief human resources officer; Debi Theis, vice president, merchants, marketing and innovation.
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 Hydra Fusion Collection.
Comments: This is the last year that Avon will be in our list. In May, the company agreed to be acquired by Natura via a share swap that creates the fourth largest beauty company in the world. Under the terms of the agreement, Natura will hold 76% of the combined business, which will have annual retail sales of well over $10 billion. 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.
The acquisition by Natura ends a painful decade for Avon, as its sales have been nearly cut in half from $10 billion in 2008 to $5.5 billion last year. These declines may be attributed to improved availability of affordable beauty products, the rise of e-commerce and an outdated marketing model. In 2015, Avon sold its North American segment due to sustained losses from its US, Canada and Puerto Rico operations. Since then, the company has been operating in Europe, the Middle East & Africa; South Latin America; North Latin America and Asia Pacific.
“As it comes to digital transformation, our approach is similar to the one Avon has been following, and we also share the same optimism about the brand,” said Natura’s CEO João Paulo Ferreira.
Avon appointed a new chief executive officer in January. Seasoned consumer marketing executive and former CEO of Spanx, Laurie Ann Goldman succeeded Scott White.
“The right product has the power to change a woman’s life, and each woman has the power to change the world. I’m thrilled to join Avon, the company that invented social selling, and lead the team and community of beauty advisors in driving product sales and progress for women,” Goldman commented.
The Anew Hydra Fusion collection was awarded as a top eye cream by Marie Claire Magazine among “25 Best Products That Will Change Your Life.” The magazine stated that Anew Hydra Fusion De-Puffing serum instantly helps de-puff and hydrate the delicate under-eye area while reducing the appearance of bags and fine, dry lines.
On May 9, the company announced the launch of a new mobile app that will help representatives increase their productivity and manage their business easier and faster, while harnessing the power of their own networks through enhanced social sharing capabilities. Key features include latest product and promotion notifications, order placing, easy access to support features including FAQs and Avon contact centers, a sharable link to the instant messaging brochure and a social media hub.
Avon got off to rough start in 2019, as the company missed first-quarter revenue estimates, hurt by lower numbers of direct sales representatives in Europe, Middle East and Africa and South Latin America.
Sales in Europe, Middle East and Africa fell 19% to $458.7 million (£351.3 million) and 17% in South Latin America.
Losses widened to $32.7 million in the first quarter ended March 31 from $20.3 million, or 6 cents per share, a year earlier. Total revenue fell 15% to $1.19 billion and missed analysts’ average estimate of $1.24 billion, according to IBES data from Refinitiv.