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Essay / AVON and Globalization - 1090
Why is Avon so much more dependent on its overseas operations than its domestic (US) operations? (Daniels, 2010) Avon Products is the world's leading direct seller of cosmetics and similar items, with direct sales remaining its primary method of distribution to customers (Colbert, 2011). At last count, Avon had approximately 6.2 million independent representatives worldwide and sales and distribution operations in more than 100 countries and territories (Colbert, 2011). According to the textbook's case study, the main reason is due to the United States market for cosmetics being very mature, not to mention extremely competitive. For this reason, Avon made the decision to focus its efforts – and resources – on less competitive markets. (Daniels, 2010) Another reason is that fewer women in the United States are as receptive to Avon's direct selling method as they once were. Additionally, the pool of part-time job seekers, those willing to sell Avon door-to-door, is also drying up in the United States. This is not the case in other parts of the world, however, which is why Avon focuses on these particular areas. What is interesting, however, is to note the difference in distribution in some countries – Japan, for example, enjoys a huge mail order business while Avon has beauty centers in Argentina. Discuss socio-economic and demographic changes that could affect Avon. (Daniels, 2010) Cosmetics are a luxury, although it was said during the Great Depression of the 1930s that lipstick sales exploded. For example, a tube of lipstick was an affordable little treat. However, very poor women would not take the time – or effort – to focus on cosmetics. However, a growing middle class ...... middle of paper ...... is right and the evidence of corruption is being rooted out and dealt with. Works Cited Avon Products Inc. (June 2010). Data monitor. Retrieved January 29, 2011 from EBSCOHost database. Colbert, Catherine (2011). Avon Products Inc. Hoovers Sales Research. Retrieved January 29, 2011 from the Proquest database. Colbert, Catherine (b) (2011). Mary Kay Inc. Hoovers Business Research. Retrieved January 29, 2011 from the Proquest database. Daniels, John (2010). International business: environments and operations 13th. pages 620-625. New Jersey. Pearson Education Inc. Mortimer, Ruth (May 21, 2009). Avon calls for a new generation. Marketing Week, 27-28. Swanson, Erin (November 8, 2010). Avon Products. Morningstar Investment Research Center. Retrieved January 29, 2011, from http://library.morningstar.com/stocknet/MorningstarAnalysis.aspx?Country=USA&Symbol=AVP.