Saturday, November 26, 2011

Avon Catalog Sales Prospects

Avon products and the Avon Catalog have been huge hits since they have been in business since 1886. They are the largest direct marketer of beauty products for women and now recently they have started a men's line as well. In 1886 the first Avon lady was actually a man and in the beginning he was actually selling books but then he saw perfumes were selling better than his books so he started the California Perfume Company. Avon came to be in 1939 when they changed the name from the California Perfume Co. to the Avon company
     Avon has more than 2.6 million Avon team members supplying Avon products in homes and offices nationwide and Avon ranks first in sales nationwide despite huge competition from the other players in the cosmetics industry. The other part of Avon's growth plan is to expand to South America, Eastern Europe and Asia with Product lines and catalogs just for those markets. Where now in America 50% of sales are held at a work site because that's where ladies are in America  in these other countries it can go back to the original door to door sales model since most women in some of these countries don't work outside the home. it will be interesting to see this global growth trend for Avon. One of the advantages especially for Avon products is that in some of these countries the ladies want their cosmetics to come from outside their country. Cosmetics that are imported have a higher intrinsic value to them.
MARK  - Mark is just a boys name to you and me but to Avon it's their low cost products for teenage girls who are just getting into makeup according to Avon research there are about 320 million young ladies between 16-24 who spend over 200 billion dollars annually on consumer goods. This market is a huge opportunity for Avon. Mark is a brand for young ladies that are making their mark in the world
     So, with the growth here in the United States and the growth in the overseas markets like South America, Asia, and Eastern Europe not to mention the whole Mark line of products Avon is looking like a true growth prospect. Because as these teenagers become women and start to buy more products and more expensive products they are the same customer number but they drive more profit to the Avon Company. Not bad for a little company that sells products door to door with a catalog.

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