The case of Avon deals with a very difficult situation in which the possibility of losing a significant share of the market is at stake within the Cosmetic Industry. The industry, as it pertains to this case, has steadily grown throughout the years and has grown 2.8 % from 1995-1999. Furthermore, the industry was expected to grow another 26.58 billion by 2003. To best explain how Avon could help their market share, I will discuss some driving forces in the industry and the possible strategies to be able to effectively combat these forces. Three of the main driving forces include: shifting distribution networks, shifting market demands, and increasing consumer awareness.
In regards to the shifting distribution channels, their current methods of direct sales would be inappropriate for the future. The market is steadily moving towards a system of where the consumer would be considered "on the go." Avon's highest portion of sales generally stems from their Door-to-Door sales methods. Nowadays, more people have to work; which leaves no one home to answer the door for these Avon sales people. To battle this growing concern, Avon has begun to launch a couple of different methods. For one, they have started Avon.com, to be able to get into the Internet market (for those who shop more online). Secondly, they are devising a plan to enter into an agreement with Sears and JCPenny to be able to compete with some of the retail competition that has stifled their growth in the past (Mary Kay, Lancome, etc .).
Not only has there been a shift in the sales distribution networks but also in age, gender, and race demographics. For example, the older generation is accustomed to Avon products, and is used to their Door-to-Door sales approach. But the other three age distributions (Baby boomers, Gen X, and Gen Y) are unaccustomed to this sales method. These are the groups that shop online and go shopping at retail outlets.
