Topic > AVON and globalization - 1090

Why is Avon so much more dependent on its foreign operations than on its domestic (USA) ones? (Daniels, 2010) Avon Products is the world's largest direct seller of cosmetics and similar items, and direct sales remain the 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 case study, the main reason is because the market in the United States for cosmetics is very mature, not to mention extremely competitive. For this reason, Avon has decided to place its emphasis – and its resources – on less competitive markets. (Daniels, 2010) Another reason is because fewer women in the United States are as receptive to Avon's direct selling method as they once were. Furthermore, even in the United States the pool of people looking for part-time work, i.e. those who are willing to sell Avon door to door, is drying up. In other parts of the world, however, this is not the case and that is why Avon is focusing 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 socioeconomic and demographic changes that could affect Avon. (Daniels, 2010) Cosmetics are a luxury, although during the Great Depression of the 1930s, lipstick sales were said to have skyrocketed. For example, a tube of lipstick was an affordable little indulgence. However, very poor women would not have taken the time – or effort – to focus on cosmetics. However, a growing middle class… center of paper… is right and that evidence of corruption is being rooted out and dealt with. Works CitedAvon Products Inc. (2010, June). Data monitor. Retrieved January 29, 2011 from EBSCOHost database. Colbert, Catherine (2011). Avon Products Inc. Hoovers Company Search. Retrieved January 29, 2011, from Proquest database. Colbert, Catherine (b) (2011). Mary Kay Inc. Hoovers Corporate Search. Retrieved January 29, 2011, from Proquest database. Daniels, John (2010). International Affairs: Environments and Operations 13e. page 620-625. New Jersey. Pearson Education Inc. Mortimer, Ruth (2009, May 21). Avon calls for a new generation. Marketing Week, 27-28. Swanson, Erin (2010, November 8). Avon products. Morningstar Investment Research Center. Retrieved January 29, 2011, from http://library.morningstar.com/stocknet/MorningstarAnalysis.aspx?Country=USA&Symbol=AVP.