Avon at a Glance.pdf by zhaonedx


									Avon at a

   Avon is recognized around the world as the company for women. Our mission is to be the
   company that best understands and satisfies the product, service and self-fulfillment
   needs of women globally. We strive to do this every day through our direct selling earnings
   opportunity, which empowers women to earn income to support themselves and their families;
   through our innovative product offerings, which help women to look and feel their best every
   day; and through our global philanthropy in support of women’s causes.

   In every corner of the Avon world, we operate our business according to the principles
   established by our founder David H. McConnell, which have guided our company since its
   inception in 1886:
   To provide individuals an opportunity to earn in support of their well-being and happiness.
   To serve families throughout the world with products of the highest quality backed by
   a guarantee of satisfaction.
   To render a service to customers that is outstanding in its helpfulness and courtesy.
   To give full recognition to employees and Representatives, on whose contributions Avon depends.
   To share with others the rewards of growth and success.
   To meet fully the obligations of corporate citizenship by contributing to the well being of society
   and the environment in which it functions.
   To maintain and cherish the friendly spirit of Avon.


   The majority of Avon’s revenue is derived from Beauty sales, which includes Color Cosmetics,
   Skincare, Fragrance and Personal Care products.

                       Avon Color
                       Avon Color is Avon’s flagship global color cosmetics brand which offers a variety
                       of color cosmetics products, including foundations, powders, lip, eye and nail
                       products. Its palettes contain shades that suit the skin tones of women of all
                       ethnicities. Avon Color provides superior innovation and high-technology in
                       its products to deliver beauty and treatment-related benefits that make women
                       look and feel their best.

   Avon created the anti-aging market with the launch of ANEW in 1992, mwhich is the
   world’s leading mass market anti-aging skincare brand offering breakthrough
   products infused with innovative technology at affordable prices. The ANEW
   brand boasts an assortment of skincare products that fight all stages of the aging
   process, and is also well-known for pioneering products that serve as at-home
   alternatives to professional cosmetic treatments. In addition to ANEW, Avon
   offers Avon Solutions, the mid-tier skincare line of facial and body treatments
   formulated to meet our customers’ individual skin needs. Offered at slightly
   more affordable prices than the ANEW brand, Avon Solutions products are infused with a unique
   combination of nutrients and supplements developed by Avon that help women maintain healthy skin.

                       Avon is the world’s largest manufacturer of mass market perfumes. In
                       addition to classic Avon scents, like Today, Tomorrow, Always, the company’s
                       first prest ige frag r a n c e t r ilo g y, Avo n h a s in t r o d u c e d e xc it in g fr agr a n c e s
                       formulated in conjunction with haute couture designers including Christian
                       Lacroix and House of Ungaro, a n d w o r l d - f a m o u s c e l e b r i t i e s i n c l u d i n g
                       Avon Global Ambassador Reese Witherspoon.

                       Personal Care
                       Personal Care products at Avon include bath & body lines as well as haircare
                       and wellness. Skin-So-Soft is one of Avon’s best-loved brands offering a line of
                       bath and body products for all skin types. Since the launch of the brand’s famous
                       bath oil in 1961, Skin-So-Soft has evolved over the years to an extended line
                       of brands that include Daily Moisture, Renew & Refresh, Soft & Glow, Fresh &
                       Smooth and Soft & Firm that provide skin smoothing and skin caring benefits,
                       and even a Bug Guard insect repellent.


       Avon, the company for women, is a leading global beauty company, with over $10 billion in annual
       revenue and 41,000 associates. As the world’s largest direct seller, Avon markets to women
       in over 100 countries through more than 6.2 million independent Avon Sales Representatives
       Avon’s product line includes beauty products, as well as fashion and home products. Learn more
       about Avon and its products at www.avoncompany.com.

     Total Revenue 2005-2009 (in billions)

9                                                                               $10.4

8                                                                                       $10.7




                                                                             Revenue by Product Category for 2009


    Revenue by Region for 2009                                               Fashion

            North                         Central &                                                             72%
           America                     Eastern Europe
            $2.3B                           $1.5B     China
             22%                             14%      $.3B
                                 Western Europe        3%
                                   Middle East                Asia Pacific
                                     Africa                      $.9B
                                     $1.3B                        9%            Beauty:
                                                                                cosmetics, fragrances, skin care and toiletries
                  Latin               13%
                                                                                jewelry, watches, apparel and accessories
                                                                                housewares, gifts and decorative products


   When he established Avon in 1886, our Founder David H. McConnell said that the company
   should strive to meet fully the obligations of corporate citizenship by contributing to the well
   being of society and the environment in which it functions. We live by this principle every day,
   through our socially responsible business operations and our commitment to empower women
   through Avon’s earnings opportunity and our philanthropic efforts in support of women’s causes.

   Avon is a leader in advancing the causes of Breast Cancer and
   Domestic Violence worldwide, both through corporate philanthropy
   and the efforts of the Avon Foundation for Women, a US 501(c)(3)
   public charity. In all, Avon and the Avon Foundation for Women have
   improved the lives of women and their families in more than 50 countries,
   and through 2009 over $730 million has been raised and donated.

   Breast Cancer Crusade
   From 1992 through 2009, the Avon Breast Cancer Crusade has
   raised and awarded more than $640 million in more than 50
   countries worldwide for awareness and education; screeni n g
   a nd d i a g n o s i s ; access to treatmen t ; s u p p o r t s e r v i c e s ; a n d
   s c ientif i c res e arch. Avon is p roud t o b e t h e la r g e s t c o r p o r a t e
   s u ppo rter o f t he Breast Cancer cause .

   Domestic Violence
   Since its inception in 2004, Avon’s Speak Out Against Domestic Violence
   program has awarded more than $16 million to almost 400 domestic
   violence organizations across the US to support awareness, education,
   direct services and prevention programs, with a special focus on
   children affected by domestic violence. The program has expanded
   to 15 countries. In 2008 Avon Products, Inc. committed $1 million to the
   UNIFEM-managed U.N. Trust Fund to End Violence Against Women,
   and renewed its support in 2009 with an additional $250,000 grant.

   Disaster Relief
   The Avon Foundation and Avon Products, Inc. respond quickly to
   national and international disasters and emergencies, raising nearly
   $18 million from 2001-2009 for events such as the attacks of 9/11
   and natural disasters in the U.S. and worldwide. In 2010, Avon donated
   $1 million to support relief efforts in Haiti in response to the devastating


    Av o n ’s f o u n de r, Da vi d M c Co n n e l l , st a rt e d h is c are e r as a su c c e ssf u l book sale sm an wh o of te n
    g a v e h i s f e m a l e c u s t o m e r s a g i f t o f p e r f u me with their purchases. Realizing that his perfumes
    w e r e m o r e p o p u l a r t h a n h i s b o o k s , i n 1 8 8 6 M r. M c C o n n e l l l a u n c h e d a b r a n d - n e w b u s i n e s s
    s e l l i n g toiletries directly to customers: the California Perfume Company, based in New York Ci ty.
    A pioneer in the industry now known as “direct selling,” Mr. McConnell keenly understood t h e p o w e r
    o f relationship-based sales, and knew that women could be effective, trustworthy sales people. When
    he launched his business, he tapped into an unheard-of sales force, immediately employing Mrs.
    Persis F. Eames Albee as the first Avon Representative. His commitment to empowering women to
    earn income f or t h e m s e l v e s a n d t h e i r families shattered paradigms 34 years before women in the
    U.S. had the right to vote and rarely worked outside of the home.
    Initially, Representatives sold products door-to-door with the aid of a sample case.I n 1896, the first brochures
    w e r e pr i nted wh i c h i m p ro v e d R e p re se n t a t i v e s’ opportu n itie s by allowin g th e m to sh owc ase m ore pr oducts
    th a n they co ul d c a rr y i n t h e i r s a m p l e c a se s .
                          In 1897, the California Perfume Company expanded to a three-story “soap and perfume manufactory”
                          in Suffern, New York, and the product line was continually revised to ensure c u stom e r satisfaction.
                          Rose Pomade for Lips and Sweet Sixteen Face Powder were two of the first makeup products.

                          1906 marked the beginning of advertising for the California Perfume Company. The first advertisement
                          featured Roses Perfume in the pages of America’s favorite women’s magazine, Good Housekeeping.
                          In 1914, the first international branch opened in Montreal, Canada.
                          In 1939, McConnell renamed the company Avon, in tribute to his favorite playwright, William Shakespeare,
                          who hailed from the town Stratford-On-Avon in England.
    In 1946, with sales of $17.2 million and profit rising to more than $1 million, Avon became a publicly-traded company.
    In 1954, the company launched one of the most memorable advertising campaigns of all time with the “Ding Dong Avon
    Calling” commercials. This year also marked Avon’s first overseas expansion in Venezuela. After entering Latin America,
    A v o n l a u n c h e d o p e ra t i o n s i n We st e rn E u ro pe in 1959, in th e Un ite d Kin gdom an d We ste rn G e rm an y. In 1969,
    Avon entered Japan, expanding its operations to the Asia Pacific market. Today, Avon sells products in well over 100 countries.
    In 1955, the Avon Foundation was established to help improve the lives of women globally.
    In 1972, Avon became a one billion-dollar company.
    In the 1990’s Avon entered Central & Eastern Europe with operations opening in Russia and Czech
    Republic in 1991 and rapidly expanding to two markets in that region during the 1990’s. Avon also

    entered China in 1990.

                          In 2005, Avon invested $100 million to build a new cutting-edge Global Research and
                          Development Center in Suffern, NY, furthering the company’s commitment to stay at the
                          forefront of the beauty marketplace, bringing leading-edge, technology-based products
                          to women around the world.
                          In 2007, Avon launched the Hello Tomorrow Campaign, a global marketing campaign that
                          encompasses product and Representative recruitment advertising; and the Hello Tomorrow Fund, which
                          empowers women and improves society by providing individuals with cash awards that will allow them to
                          pursue a project or initiative to better the lives of women of all ages.
                          In 2008, Avon surpassed $10 billion in revenue, and in 2009 grew to 6.2 million Active Representatives, as
                          women worldwide recognized Avon could be the answer to a challenging global economic environment.


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