Avon: История и современность косметической компании

Anglo American beauty products company

Avon Products, Inc. or simply known as Avon, is an Anglo American multinational company selling cosmetics, skin care, perfume, and personal care products, It is a multi level marketing company based in London. In 2020, Avon had annual sales of $9.1 billion worldwide. and, with 6.4 million representatives, is the second largest multi level marketing company in the world (after Amway). The company's CEO is Angela Cretu who was appointed to the position in January 2020. In May 2019, the Brazilian multinational company Natura & Co announced its intent to acquire Avon; the deal closed in January 2020. Following the merger, existing Natura shareholders held 73% of the combined company, Natura Holding S. A., with former Avon shareholders owning 27%. At merger completion, Avon became a privately held company, common stock was removed from the NYSE trading.

Avon's founder, David H. McConnell, initially sold books as a door to door salesman to New York homes. In September 1886, he decided to sell perfumes rather than books. He started the new business in a small office at 126 Chambers Street, Manhattan, New York. McConnell changed the company name in 1892. His business partner suggested calling it the "California Perfume Company." His business partner was living in California at the time and suggested the name because of the abundance of flowers in California. In May 1894, Alexander D. Henderson joined the company, became vice president and treasurer, and helped shape its policies and assist in its growth. In 1897 they built a laboratory in Suffern, New York. On June 16, 1909, McConnell and Henderson signed an agreement of Incorporation for the California Perfume Company in the state of New Jersey. On January 28, 1916, the California Perfume Company was incorporated in the state of New York. McConnell, Henderson, and William Scheele were listed as company officials. In 1939, the California Perfume Company changed its name to Avon.

Avon sells products in over 100 countries. Brazil is the company's largest market, passing the United States in 2010. Avon entered the Chinese market in 1990. Direct selling was outlawed in China in 1998, earlier reports said that Avon rejected the bid, stating "At the time, the board concluded, and it still believes, that Coty's indication of interest is opportunistic and not in the best interest of Avon's shareholders." In March 2016, Cerberus Capital Management paid $435 million in cash for preferred stock in Avon Products. This move was the conclusion of a deal initiated in December 2015, when Avon sold 80.1 percent of its North American Business to Cerberus for $170 million. The total value of the deal was $605 million. The investment resulted in Cerberus having an almost 17 percent stake in Avon Products. In January 2020, Natura & Co closed the acquisition of Avon Products, Inc. The Natura & Co group also includes Natura, Aesop, and The Body Shop, and with the acquisition of Avon has created the world's fourth largest pure play beauty company.

In 2014, Avon's global sales had fallen for five straight years, and its North American revenues fell 18% that year. In 2016, Avon completed the separation of its United States, Canada, and Puerto Rico business as New Avon LLC, which also trades with the "Avon" name. As part of a three year plan, the global Avon Products moved its headquarters to London in the United Kingdom. In August 2019, New Avon LLC, the privately held North American company that split from Avon Products, Inc. (Avon Worldwide) in 2016 entered into a definitive agreement with South Korean consumer goods giant LG Household & Health Care, Ltd., which will purchase the direct selling cosmetics business for $125 million in cash. In January 2021, New Avon Company announced its corporate name change to The Avon Company. Jan Zijderveld was appointed the company's CEO in February 2018. creating the world's fourth largest beauty company. Under the deal's terms, Natura will hold 76% of the combined business with over $10 billion in annual revenue. In June 2020, a new logo of Avon was released. In November 2023, Avon announced it would launch stores in the United Kingdom for the first time, adding to its existing network of 63 stores in Turkey.

Avon uses both door to door salespeople ("Avon ladies", as well as "Avon men") and brochures to advertise its products. Some Avon training centers have a small retail section with skin care products, such as creams, serums, makeup, and washes. Avon recruits sales representatives who sell beauty products, jewelry, accessories, and clothing. Some of the brand names used by the company include Avon Color (also known as Avon True Color), mark., Imari, Far Away, Sweet Honesty, Little Dress Scents, Avon Fashions, Anew, Avon True NutraEffects, Naturals, Avon Care, Feelin Fresh and Skin So Soft. According to the U. S. government, Avon has 5 million to 6 million sales representatives operating in over 100 countries as of 2014. Avon and its subsidiaries have 40,000 to 50,000 employees, 6,000 of which are in the United States. Avon began a probe of its China division after an internal whistleblower alleged bribery in June 2008. According to The New York Times, Avon spent over $170 million on legal fees and costs related to the investigation: $59 million in 2009 and $95 million in 2010, and $22.5 million for the first quarter of 2011. The final tally was about $500 million. The Times reported that Avon would report the findings to the United States Department of Justice and the Securities and Exchange Commission (SEC) and try to negotiate the penalties that those entities may impose. In 2014, Avon settled the bribery charges for a total of $135 million; $68 million in criminal penalties, with the remainder in interest, disgorgement, and fines from a civil case brought by the SEC.

Avon vowed in 1989 that as a company located in the United States, it would no longer participate in animal testing. Avon has since claimed to be working globally to introduce safer methods of testing cosmetics that do not require animals. These methods include in vitro testing, computer simulations, and testing cosmetics on human volunteers. Because Avon is not globally animal testing free, People for the Ethical Treatment of Animals (PETA) has not included Avon on their cruelty free list. In 2019, Avon ended all regulatory required animal testing, making it the first global beauty company selling in China to stop all animal testing of ingredients and products across all its brands by developing new ways to deliver products that do not require animal testing, such as reformulating products. PETA has since announced that it has added Avon Products Inc. to their list of companies "Working for Regulatory Change".

In October 2013, Avon announced the closure of its branch in France at the end of that month. Its French employees accused it of keeping the workers in the dark for months and not acting in line with the company's publicly stated values of being a socially responsible company that upholds values of trust, respect and integrity and a culture of "open and candid communication." As of January 2014, Avon France was in receivership. This was followed by an announcement via Facebook on February 15, 2018, that Avon Australia and New Zealand would close by the end of the year. This decision resulted in the loss of 220 jobs and 21,400 sales representatives. The company has attracted criticism for poor communication with its customers and employees. Avon is still active in Russia and is recruiting more people and continuing to manufacture products as of January 2024.