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 Business

Avon to woo younger generation

6th August, 2018

KUALA LUMPUR: Avon Cosmetics (Malaysia) Sdn Bhd will focus on wooing the younger generation and exploring new potential market via e-commerce and roadshows to arrest the declining revenue and number of sales representatives.

The slide in revenue and number of sales representatives has forced the direct-selling beauty company to embark on a major facelift in order to attract young people, especially professionals and university students, who are more likely to use social media by improving its persona to generate better earnings.

Acknowledging that the brand is closely associated with mom’s products rather than millennials, Avon General Manager Onur Erdinc said it is nothing wrong with the identity, as Avon has proven that it has a strong brand image and trusted by mothers.

“We didn’t stand strong for 130 years for nothing, but it doesn’t mean we are complacent. It is timely that Avon emerges from its persona as a ‘mom’s brand’ and go to wherever the (younger) generation is going and lacking, in that (the younger generation market) is the basic shortcoming that we have,” he told Bernama in an interview.

According to Avon Products, Inc, Avon’s Asia Pacific revenue was down two per cent to three per cent in constant dollars in the first quarter of 2018 versus the same quarter last year as they were negatively impacted by a decrease in active representatives, most significantly in Malaysia, as well as lower average order.

Erdinc explained that e-commerce sales have contributed a meager one per cent to Avon’s Malaysia revenue, while the conventional method, comprising of sales representatives and physical stores contributed 99 per cent to its earnings.

Avon Malaysia has over 200,000 sales representatives and 168 outlets.

Erdinc said hence, the cosmetic company has set up its own e-commerce platform to entice youths, but the platform needs to be further polished. Avon plans to transform the digital capabilities of its sales representatives and improve interactions with consumers. Avon is a leading beauty company, and is developing the digital tools necessary to bring customers the latest trends, through direct, trusted and personal experience of its six-million strong network of beauty micro-entrepreneurs worldwide. –Bernama

   
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