Avon Products Inc. - Statistics & Facts

Since Avon’s founding in 1886, the company has grown into a worldwide cosmetics and beauty staple. The firm’s approach of contracting self-employed sales representatives created passionate advocates around the world and lead to Avon now being established in over 100 countries. A worldwide market penetration is important for cosmetic giants as more than half the global market now lays outside of the traditional revenue sources of North America and Western Europe.

Riding the wave of entrepreneurship among the middle classes, Avon became a social phenomenon during the 20th century. While Avon can no longer claim to be the powerful brand they once were, they remain a household name in the 21st century. In a 2019 survey of U.S. women, 78 percent of respondents reported that they were familiar with Avon, making it one of the most well-known cosmetic brands in the United States. However, only 10 percent of U.S. women use Avon on a regular basis.

Despite the prominence of the company’s global image, Avon has experienced significant financial problems in recent years. Between 2011 and 2019, Avon’s total revenue dropped from around 9.23 billion U.S. dollars to around 4.76 billion. Unfortunately for Avon, the decline was not contained to one geographic region. The breakdown of revenue from 2013 to 2019 paints a bleak picture in which a downturn in any one region cannot be blamed for the global demise. Unsurprisingly, these drops saw Avon’s total operating profits slashed by half by 2019.

The sharp decline in financial returns has prompted a rethink in the firm’s strategies with the door-to-door approach coming under fire in the internet age. Despite having an online store, Avon is not listed in a 2018 ranking of the leading online beauty stores in the United States. As the internet moves from being solely a consumer information source to a retail platform, it is hard to see which doors Avon’s numerous sales representatives will be knocking on next.

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Avon Products Inc.

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