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Introduction

Avon is one of the world’s oldest and largest manufacturers and marketers of beauty and related products. It is based in the United States. The firm engages in the manufacture and marketing of beauty and complementary products primarily in North America, Latin America, Europe and Asia pacific. Almost 80% of its sales are outside its North America division. Andrea Jung became president and CEO of Avon in 1999 and has totally revamped the company. The company sells and markets its product through a combination of direct selling, marketing by independent Avon representatives and via its consumer website, www.avon .com. In 2010 it sold $10.7 billion in 113 countries and territories and 2 out of 5 women in the world bought an Avon product.

Factors that lead Avon Going Global

Avon is so much more dependent on its foreign operations than on its home operations for many reasons. First, Avon realized that the level of competitiveness in the United States market has grown vastly. Furthermore, there is almost no “remaining untapped market for cosmetics, fragrances, toiletries. To grow rapidly in the United States would mean taking sales from competitors and the U.S beauty market is very competitive. A consumer can go into almost any department store and purchase a cosmetic or fragrance whenever they want. Therefore, unless a consumer is unable to travel to purchase their own cosmetics, they may be less willing to buy from Avon unless they are familiar with the same and seek a representative for purchase. Furthermore, the United States only makes 5% of the world’s population. Therefore, there are so many more potential consumers.

Avon originally creates its sales pitch by proving door to door sales. People no longer enjoy someone coming and knocking on their door to sell them a product. It is unsafe in today’s society and is much of a burden. Therefore, the original concept of Avon has diminished here and in foreign countries, where services are less...