The world’s No. 1 direct seller of cosmetics is getting ready to introduce several products in the next few months, and is taking steps to preserve customer relationships even after representatives who sold to them quit.
Avon is doing this because its sales in North America, its second-largest market, slid over the years, in part because of the recession and competition from established retailers that cut into Avon’s historical “Avon Lady” direct sales model.
Avon plans to start selling Tiny Tillia children’s personal care products in early 2011 and will add more adult hair care products to its lineup, according to analysts who attended Avon’s U.S. sales leadership conference in Las Vegas earlier this week. It also wants to focus on women who spend more money, they said.
Avon declined to discuss the conference.
While Avon has several strategies, such as introducing a “Lotus Shield” anti-frizz hair treatment this summer, Stifel Nicolaus analyst Mark Astrachan said he does not expect U.S. sales will grow until at least 2012.
Logo from Avon