AVON seeks to reduce costs to resume the market

The iconic brand of cosmetics calls again at the doors of the market through a cost reduction plan that place it in online commerce

Thousands of women made the sale of cosmetics by AVON catalog the source of income to support the family. The dynamic consisted in the selection of the product by the client through printed material, which was then processed by the salesperson in physical offices who finally received the orders to be distributed.

However, the drastic change from the physical store to the online store market generated a sharp contraction in the iconic beauty and personal care brand business not only for women but for the whole family.

In spite of its diversification towards the supply of household items, sales decreased as well as those involved around the world. However, currently the company uses a cost reduction plan to achieve its reintegration into the market through digital commerce.

Billing in Europe and America fluctuates like a roller coaster that goes up and down. However, the sellers, who currently account for more than 35,000 worldwide, can earn income from 300 to 1,500 euros and more per year.

In the distribution center of Poland sales reached 1,800 million euros. The plan to “reduce global costs by 400 million dollars between now and 2021 through efficiencies in manufacturing and supply” has contributed to this.

The “Open Up” plan began in January with a cut of 18% in its general workforce. This plan also includes updating products, adopting new platforms and improving distributors in order to attract new generations anchored to YouTube, Facebook, Twitter and WhatsApp.

These niche markets are the focus of AVON that makes a leap to the online market, the incorporation of communication technology and the inclusion of new customer segments accustomed to immediacy and reduced response times.

M.Pino

Fuente: El País

You might also like