Did you know? Avon was the first beauty company to launch an e-commerce site in 1996! And they are one of the most talked about Beauty Brands on social media.
The company, which was established in 1886 has been operating for over 130 years and is able to sell its products in various regions like Middle East, Africa, Latin America, Europe, UK, USA and the Asia Pacific. The company made profits of 6 billion dollars in in 2016 and is the second-largest directly selling company in the world. Avon reviews on the brand’s website are overall very positive. The product with the most reviews is Avon Anew Clinical Eye Lift Pro Dual Eye System, which has received an average of 4.6 out of 5 stars after more than 1,500 customer reviews.
This can only be achieved through a firm with extensive knowledge, experience, and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities, and threats, it is necessary to conduct a SWOT analysis by Avon.
Avon At A Glance – Avon SWOT Analysis
Company: Avon Products, Inc.
Founders: David H. McConnell
Year of establishment: 1886, New York, New York, United States
CEO: Angela Cretu
Headquarters: London, United Kingdom
Employees (Dec 2020): 23,932
Ticker Symbol: AVP
Type: Public
Annual Revenue (Dec 2020): US3.63 Billion
Profit net income (Dec 2020): US$377.7 Million
Products & Services: Makeup | Cosmetics | Beauty, and Technology | Personal Care Products | Skin care products
Company Website: www.avon.com
Top Avon Competitors
Competitors: Mary Kay | Amway Corporation | Oriflame Cosmetics | Estee Lauder | Coty | Revlon | L’Oreal | Unilever
Avon SWOT Analysis – SWOT Analysis Of Avon
SWOT Analysis Of Avon analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Avon SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Avon SWOT Analysis. Below Is The Detailed SWOT Analysis Of Avon.
Avon Strengths – Avon SWOT Analysis
1. Clear Goal segment: Avon has a clearly defined segment that it targets, which is women. To attract them they make sure the preference goes to women when it comes to the selection of their representatives. Their products are also made intended for women, and the business with regards to their social initiatives also have an unwavering focus on women’s self-determination.
2. Good stakeholder relations: Avon clearly understand that the success of any direct marketing business is based on the satisfaction of its stakeholders. keeping this in mind, the company is focused on increasing the value of every stakeholder, whether it is their agents, partners or clients.
3. A strong brand recognition: Research shows that Avon is among the most known brands, having a brand recognition of around 90%. To ensure there is an enduring branding brand recognition company assures that its products meet the needs for personal and beauty of different segments like women as well as men and children.
4. The maximum return: Avon guarantees an extra revenue to each of its reps with two choices, either a sales leader or representative. In the first case, while accountable for direct sales, the latter is responsible for managing an entire team of representatives and is paid a commission for each sale that is made by each one of them.
5. Utilizing technologies: Avon uses technology to connect with their customers as well as other stakeholder. A few of their latest technology advancements comprise the use of social media environments that can be customized as well as e-brochures and monitoring tools for sales managers.
6. Cultural Consciousness: Avon has clients all over the globe, which means they have a wide range of types of hair and skin for their Beauty segment. Most items they offer are designed through careful research of the market segment they are designed and also the brand is sensitive to the culture in their advertising and brochures that are utilized in every country.
Avon Weaknesses – Avon SWOT Analysis
1. Women’s role in the society: Earlier there were more women in the home, and as more women entered the workforce, the number of homemakers who wanted to work as sales reps for Avon for an additional portion of their income, began to diminish in number.
2. The competition from online retailers: The biggest reason why consumers opted to purchase Avon products was the convenience. But, with the rise of retailers on the internet, the ease of shopping at home , as well as the option of quality brands has altered the preference towards the online stores in comparison to Avon.
3. Expectations too high: In a bid to beat traditional and online retailers, Avon attempted to make untrue promises regarding how good their goods and also the benefits that they offered their partners. The result was a discrediting of Avon as a brand.
4. The drastic drop of US revenue: The dip in the US sales caused panic for Avon because it was among their most important market by shares. It was also accompanied by an increase in their number of representative. The combination of these two factors led to Avon shifting its focus on the lower income segment and to nations like Vietnam, South Korea, and Africa.
Avon Opportunities – Avon SWOT Analysis
1. Selling via websites: In the same way, direct sales are also possible. Avon may also benefit from the assistance of online retailers such as Amazon and Flipkart to deliver their products to the customers. This can help them reach more markets with a low cost.
2. The need for additional income: As the rate of inflation continues to rise, those working are also seeking additional income sources to supplement their primary source of income. This opens up a wide range of possibilities for multi-level businesses to expand their reach which will in turn mean increased business.
Avon Threats – Avon SWOT Analysis
1. Competition: The biggest competitor to Avon can be found in Amway.
Avon SWOT Analysis Overview Template
This is the SWOT report that Avon has done. Please let us know if you have additional suggestions to add.
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