Avon Company

AVON is the company with an old history. The very beginning of the direct-selling is also connected with AVON, when David McConnell (developer of AVON Company) realized that people came listening him describing the books because of the gifted perfume. During the years more and more AVON representatives joined the company, and in year 1999 AVON was considered as largest direct seller of beauty products with annual sales of 5.3 billion dollars.

For about 100 years AVON have been practicing direct-selling approach. At the moment they have approximately 2.8 million sales representatives worldwide. Most of the people associate this company with such selling strategy and have used to it very much. And there are several other reasons why AVON should not sell directly to the customers on internet.

As already mentioned, AVON is the leader in direct-selling beauty products. If they have reached this position, it was very inconsiderate to lose it. By starting to sell consumers directly on internet – this is a very easy way how to lose it, because the huge number of representatives they have at the moment will more likely become left-out of this strategy. Although, AVON will try to maintain them by offering some benefits, still their job they are used to (providing potential clients with brochures, receiving the orders…) will be unnecessary anymore. This is a big risk they are taking if starting B2C strategy on internet – they can lose the existing representatives and lose the leader position they have gained.

Another risk is that women are buying AVON products because of their different selling approach not because they like the cosmetics so much. Women usually like the offered buying process - to receive the brochure, in the work place or at home when having a free moment to go through it, and then make a purchase. Nowadays usually all of the women who AVON is considering as target audience have the job by the computer, which becomes