Avon After 7 years of transition period, there has been a direct seller Avon finally. This has a 119-year old traditional direct marketing companies – formerly created by David • McKenney California Fragrance Company – finally still could not withstand the temptation to direct once again trying to transition in China, back in your own The main industry.
The past 7 years on the Avon is very important in China, despite the seven-year long-time flow of this article distant AVONRIVER – David • Young notes that the great writer Shakespeare cult of home stream, but also The company’s name – speaking, is short, but 7 years, it did witness an excellent multinational corporations changing successful transformation of the Chinese market. Avon’s restructuring had been forced, but created a classic MBA-style business case.
1998 after the turmoil in direct sales experience, Avon face enormous challenges: the need to save the track in the Chinese market, having just taken on the business, and must retain the backbone of the ranks of direct sellers. Avon chosen store as the transformation of the way, despite the “store” was a most direct sales companies – should in fact be called a multi-level marketing company – the transformation of the claim form, but no one knows the industry, the real transformation only the former single-level direct sales company Avon, Amway, Sunrider are in fact only symbolically opened several “store” and then hide behind the so-called “shop management” continued to be disguised under the guise of the multi-level marketing.
Before 1998, stores of this form of management rarely achieved in the field of cosmetics national success, but after that Avon did. Avon’s success thanks to direct the DNA, which are other cosmetic companies do not have. The first is dense Avon product lines, strong R & D institutions to ensure its launch of new products every month to meet the market demand. In fact, this time in direct sales already have in the store’s, it more transparent and straightforward to demonstrate in front of the market and competitors, even more than the global turnover of more Avon Procter & Gamble or L’Oreal company, nor is Avon’s opponents. Followed by Avon in the era of focused direct sales people, sales staff and the diversity of communication between consumers, this is not available in any cosmetics company, Avon is a unique competitive advantage. With Avon’s membership magazine “Let’sTalk”, Avon products and promotions to convey the message to the consumer, communication of this information exists in the direct sales era, when the Avon way of communication is “AVONCalling” (Chinese name “Fang News “). In general, catalog, magazine mode of communication in the delivery process will have a great discount, but focus on Avon in the era of direct marketing “by the conference a success,” top-down implementation capacity has been a strong corporate Avon important part of culture. Avon by the meeting every month to store owner (ie, Avon dealer) to communicate the company’s various sales policy and product information, this powerful communication and training capacity is almost exclusively for Avon. Avon high frequency in the country hold more than 6,000 of the store beauty salon, which is an extension of direct talks era beauty, no company can be closer than the Avon dealers, no one company can be more than the Avon sales staff close to the final consumers. They continue to use the “send one”, “invitation”, “promotion”, “Sharon,” and so direct approach, and finally a success after-tax annual net sales up 1.6 billion yuan in the company store.
In recent years, Avon has become synonymous with the Chinese cosmetics giant, and its performance is second only to L’Oreal and Procter & Gamble. , And the two giant difference is that Avon is almost a single brand company, although after the year 2000, Avon has introduced a lower-end makeup counter brands UP2U, but for no department store in terms of marketing experience in Avon, This was completely overshadowed by the Maybelline brand strength glorious unsuccessful, it is almost negligible. But UP2U to bring the Avon and compete against world-class competitors valuable experience, Avon’s marketing ability and progress every year, on the counter, but also on the store.
In 2004, I have analyzed the pattern of China’s cosmetics market competition (see “not subject to the rivers and lakes – the cosmetics industry, the Big Three battle” article), and asserted that “the three giant Avon is the most easy to fall into the quagmire of the company, if she is not a strategic choice, focus on the cosmetics company, then it is easy to recover after being in the direct selling and direct selling cosmetics giant, giant Fubei attack.
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