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AVON Business Overview

 

6 million women and men. It also launched its Web site that year, allowing customers to buy products on-line. The move, however, made many of the company's half-million U.S. sales representatives angry (Avon also continues to expand its product line. In addition to makeup and beauty products, the company now offers nutritional supplements, exercise equipment, and stress management products. Avon is also, however, a business and remains dollar conscious. In early 2002, the company laid off nearly four thousand workers in the United States, Mexico, and Puerto Rico in a move to increase its profits. In terms of demographic changes, Avon now realizes that not just middle aged women seek the purchase of cosmetic products. Younger women now too seek the purchase of cosmetic products. These women comprise of teenage years to more mature adult women. Therefore, Avon has undergone a makeover that is more than cosmetic. Its products are designed for a younger, hipper, and more diverse customer base. Looking forward, Avon plans to tap into the vast teen market by launching a separate teen division and enlisting teenage girls as sales representatives. Other demographic changes include the salespeople that Avon employed. Many women could no longer stay home and sell Avon products due to the economy. There were less and less women seeking employment with Avon. This was also because of the economy and the fact that more women were going back to work and simply could not stay home and wait for a representative to come to their home and offer products to them.
             3. How might a global recession, such as the one that began in 2008, impact Avon's operations?.
             Prior to 2008, many women did not have the desire to provide direct sales. However, after the global recession, many women lost their jobs and became more available for part time employment. Therefore, there has been some increase it seems in a more direct selling approach.


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