Avon products are good or bad?Best Answer They can be good because the price is better than Mary Kay. I guess it all depends how certain people react to the products.

Beauty for over 120 yearsAvon is the Number 1 Beauty Direct Seller in the World, a Beauty Icon and as one of the worlds largest micro-lenders Avon, extends credit to numerous Sales Representatives on its first order across the globe. With More than 60 lakh Representatives in over a 100 countries, Avon has understood that successful selling is about people connecting with people. Thats our spirit. In every country where we do businessin every community, Avon is committed to making a difference. Avon is a Top 100 global brand, with over Rs. 48,000 crores in annual revenue globally. It is also ranked as one of Americas most admired companies for more than a decade. As a philanthropy Leader, Avon Foundation has raised and awarded more than Rs. 3200 crores worldwide towards vital issues- breast cancer, domestic violence and emergency relief affecting lives of women and their families worldwide.

Being a socially responsible company, Avons record of innovation goes back to its beginnings. And Avon understands its responsibilities to the world as well as to its customers. Avon was the first beauty company to announce a permanent end to animal testing. Avon is empowering women since 1886. It has been building bonds with women, offering them a dynamic earnings opportunity to achieve economic independence, accomplish their financial goals and transform their lives

The Avon vision

To be the company that best understands and satisfies the product, service and self-fulfilment needs of women globally.Avon's Five Values and our Principles as expressed by the company's Founder, David H. McConnell, have served as a continuing source of strength throughout Avon's proud history; and they remain at the heart of who we are. Our five values are: Trust, Respect, Belief, Humility and Integrity. Principles that guide Avon 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

Since 1886, Avon has lived by principles set forth by our founder, David H. McConnell. They are not rules or procedures. They are the values & the ethics of Avon and what this company believes in. Paramount among Avons principles is "to meet fully the obligations of corporate citizenship by contributing to the well - being of society, and the environment in which it functions." The company was founded on solid values and principles with a longstanding commitment to the highest standards of ethics and integrity. As a result, Avon has been consistently recognized as one of the most admired companies and one of the best companies to work for. Consumer safety is Avons number one priority. We are committed to selling only safe products, using only safe ingredients in our cosmetics products and complying with applicable regulations in every county in which Avon products are sold. We

were the first major beauty company to stop animal testing in 1989. Avon commits large amounts to product safety & research. The state-of-the art $100 million Avon Research and Development center is located in Suffern, New York, where specialists work with world-renowned scientific institutions to develop beauty products that meet the needs of women globally. Today, we pride ourselves on meeting the environmental and product safety laws and regulations of the countries and communities in which we operate. To this day, the heritage of Avons Founding Principles together with the companys Vision, Mission and Values continue to chart our course & remain fundamental to how we conduct our business operations all over the world

Avon Beauty/Cosmetics Products and Network Marketing/MLM in IndiaAvon is now becoming a known company in MLM industry in India. AVON is a cosmetics company which is 123 years old and provides a variety of products in cosmetics, make up, skin care, fragrances, etc. Avon is one of the best MLM Companies in India with a history of more than 123 years.

AVON is now the worlds largest Direct Selling Company of beauty and beauty-related product. Their sale revenue for 2008 has even reached $10.7 billion, with approximately 42,000 associates worldwide promoting their products. Avon is also publicly traded on New York Stock Exchange listing. AVON has a wide range to choose from: First is Avon Color and is the flagship brand, Anew is the best Anti-aging Skincare. Skin So Soft brand is for Bath and Body products Avon Advance Techniques is a range of Hair Products. Avon Wellness is not available in India Avon Fragrance has many award winning Products. Avon Beauty Product Mark for Young Women is not there in India Avon beauty products india pvt ltd has its head office in gurgaon. Avon representatives love colors because avon representative are mostly women and avon the company for women has avon anew as the leading product. Avon cosmetic products are of the best quality, avon cosmetic and avon skin care products are known all over the world. avon sales in India is going up and avon make up products are much in demand Network marketing or multilevel marketing has seen new binary plans. MLM company with binary plan grow fast. MLM business grows slowly but the reason people are attracted to multi level MLM is that in MLM you can make a lot of money. best MLM company is AVON for it is product based. best MLM company is grace tourism. In your first year in Network marketing, just follow your upline.

Avon Beauty to launch 200 new productsAvon Beauty Products India, a subsidiary of $10.4-billion US-based Avon Products Inc, will launch 200 new products in India across skincare, cosmetics, haircare, jewellery and accessories segments and at different price points, during the current year. The beauty products company, that reaches consumers through direct selling agents, will also set up 10 Avon Beauty Zones, which are experiential centres, across the country during the year. We have doubled our sales in India in the last two years and are now seeing aggressive growth though Indian women consume far lesser number of beauty products than Western women do, says Mr Sebastian Bako, Managing Director, Avon Beauty Products India Pvt Ltd. As part of its promotion campaign this year, Avon India is also on the hunt for a top Indian celebrity as a brand ambassador. Globally, the company is considering entering the services segment (salons) such as other beauty product companies, which would be replicated in India as, We have aggressive plans in this area and India will play a major role in the strategy, Mr Bako. The Indian direct selling industry is estimated at Rs 3,500 crore and growing at 14 per cent annually.

KEY DEVELOPMENTS FOR AVON BEAUTY PRODUCTS INDIA PVT. LTD.1) Avon06/3/2010

India Unveils Manufacturing Facility in Dehradun:-

Avon Beauty Products India Pvt. Ltd. announced the opening of its first state-of-the-art manufacturing facility in India. With the production capacity of 50 million units per year, this facility will operate in full compliance with Avon's global manufacturing processes and quality standards. Spread across 9 acres, the manufacturing facility is equipped with high technology and has multi-product manufacturing capability. It will produce world-class products in various cosmetic categories like skincare, color and toiletries including creams, lotions, lipsticks, talcum powder and cleanser. The facility has been designed keeping in mind Avon's global endeavor and commitment to make earth a greener place. All effluent will be treated within the perimeters of the facility and will be utilized for various purposes within the facility. The facility also has a green belt with fruit bearing trees and ample conservation measures have been taken for sustained contribution to our environmental commitment.2) Avon03/16/2010

Beauty Products India Pvt. Ltd. Announces Executive Changes:-

Avon Beauty Products India PVT. LTD. has appointed Mr. Hemant Singh as the company's Managing Director. Mr. Singh succeeds Mr. Sebastian Bako, who spent two-and-a-half years with Avon India. Mr. Singh will be responsible for driving growth and expansion of the company's market share in India.3) Avon02/16/2010

Beauty Products India PVT. LTD. to Launch 200 New Products in 2010:-

Avon Beauty Products India PVT. LTD. will launch 200 new products in India across skincare, cosmetics, haircare, jewellery and accessories segments and at different price points, during the 2010. The beauty products company, that reaches consumers through direct selling agents, will also set up 10 Avon Beauty Zones, which are experiential centres, across the country during the year.

Avon sticks to women and direct salesSometimes not following market trends and competitors, but sticking to your own business and marketing strategy may be the best way to succeed. One of the best examples of this is Avon, the sixth largest global beauty company, which still ignores men and refuses to sell through retail stores.

Sticking to women's products and direct sales, Avon remains one of the fastest growing leading companies in beauty industry. Instead of looking for growth in the fast expanding male grooming market like many of its competitors, Avon focuses only on women retaining the slogan "the company for women". And, instead of distributing in department stores, Avon has increased the number of its independent sales representatives. Avon reported recently 13 per cent sales growth in the first half of this year, reaching $1.6 billion, and a 16 per cent rise in operating profit -up to $325.5 million. The sales results were driven by a 17 per cent increase in cosmetics sales, which account for about two thirds of all sales. The company is the world's largest direct seller of beauty products. Avon markets to women in over 100 countries through 4.4 million independent sales representatives - an increase of 11 per cent compared to 2003. Avon recently announced it had received a verbal permission and was waiting for a written one from the Chinese government to sell directly to consumers in the land of the rising sun. The company expects to increase its sales in China from $157 million last year to $400 million by 2007. Door-to-door selling has been forbidden in China since 1998 and it is expected to be lifted soon in accordance with the World Trade Organization requirements. ACNielsen, in a recent report about personal care, identified increased interest in grooming among the male population as well as the introduction and wider distribution of premium products, as two of the six key trends that drive sales in the industry. "Prestige products are not only increasingly being sold in mass retail, but continue to take market share from mass brands at mass retailers," said E. Scott Beattie, chairman and CEO of Elizabeth Arden. Avon, on the other hand, has just started on its biggest advertising campaign ever, focusing solely on women and direct sales. The $100 million campaign featuring the new global spokeswoman Salma Hayek is also expected to have a substantial beneficial effect on lifting sales in the second half. The actress is already promoting My Lip Miracle lipstick on TV and in print. This month Avon will relaunch its Anew anti-aging skin care line.

Marketing Analysis of Avon.comby Susan Plonka, Interactive Strategist at Plonka Interactive as published in Baseline Magazine (((((Avon has set up two ways to buy its products online, one directly from the company (Avon.com), and one through fairly standardized Web sites for its sales representatives (YourAvon.com).))))

In effect, Avon is competing against its Avon ladies. The ladies sites have all the products that are in each Avon catalog to sell, which may include sweaters and bug repellent. But Avon.com still sells the full line of cosmetics, fragrances and toiletries for which the company is known. Avon.com does allow buyers to cut in a rep for a piece of the action. But it does so at the very end of the sales process, with an optional response offered to buyers. There's not a serious attempt to direct the buyer first to a rep, which is odd for a company that wants its online strategy to be repcentric. Theyre cannibalizing themselves

offering shopping online without offering their reps (to customers) right from the home page, says Geri Spieler, a Web design analyst with Gartner Group, a research firm. It's their advantage over Revlon or L'Oreal. Avon's making a mistake by having two different sites in Avon.com and YourAvon.com.

Finding an ERepThere should be a zip code input box right on the Avon.com home page. Instead I had to click through two pages of Find an E-Representative. Then it asked me for my username and passwordI didn't have one yet," notes Spieler. Next, it wanted me to fill out a form. I don't want to give all that infoall I want is to find a rep in my community. It would be easy to solve the difference between Avon.com and YourAvon.com, and make sure this was a rep-centric strategy, explains Bruce Arnstein, Director of Operations at Richard A. Eisner & Co. LLP. On Avon.com, you'd just askfirst thing what you rep's name was or (for some) other ID. But it's not always so easy. Len Edwards, the president of Avon.com, said the intent in early 2000 was to come up with one big integrated site. That proved too hard to tackle; so the company decided to let Avon.com be the outlet for so-called channel rejecterscustomers who do not want to buy through representatives. The rejecters don't want someone knocking on their door. They don't want to deal with anybody. They want the anonymous experience of going to a store and buying what they want and walking away, Edwards says. At present, the design of the Avon.com and YourAvon.com sites appears to favor those rejecters.

Avon.comIn three steps, customers can start looking at products to buy; and only after shopping does Avon.com ask the customer to identify herself. The Avon.com site tries to give you the feeling of having that beauty adviser looking over your shoulder while you're shopping. But technology and design isn't used to make Avon.com personal. One test we tried was sending a question concerning a color shade from the Avon.com site through the Email Us link. After three days, the response suggested contacting a representative to see the color chartsigned Avon Information Center. Not signed Ashley, not Jessica. This is a missed opportunity for the site (and Avon) to feel more human, more personal. If the idea of Avon.com is to not "have someone knocking" on the doors of rejecters, the site should answer all the needs of the rejecters online. If there is to be a human link, then link to a live Avon rep on the other end of an instant chat.

YourAvon.com

If you want to buy from an Avon sales rep online, you first have to say who you are, and then it will take about a half-dozen steps before you start looking at any products to buy. Thats due in large part to the attempt by YourAvon.com to faithfully replicate the actual pages of the Avon catalog online. The YourAvon.com site provides shopping via their catalogs. You choose which catalog you want to shop from and then see images of the spread catalog. You can flip through page by page or by the table of contents. The large images are slow to download; the shopping process is tedious. YourAvon.com is the site that will allow you to shop with a rep ID following you around the site. You can easily ask questions by e-mailing your rep. Yet many rep bios are empty. That needs to be fixed. By contrast, Avon.com lets a customer browse by product name and shows individual, small product images. Images are much faster to load and navigation leads buyers to products they want, or to see what's new. Its silly and very expensive to have so many different Web sites, a bit behind the times. They'll eventually come to that conclusion, said Andrew Rudin, Partner at Richard A. Eisner & Co. LLP. I think ultimately they want people to go to Avon.com.

What Avon Is Doing RightAvon may have worked out a way to have its cake and eat it, too, explained Laird Miller who has worked as a Creative Director at Ogilvy & Mather and Foote, Cone + Belding. Avon.com is a new opportunity to market directly to the consumer, while YourAvon.com respects the valuable existing Avon/Rep/Customer relationship. Avon.com is more effective from a selling standpoint than MaryKay.com. On the Mary Kay site you can't get anywhere without choosing a rep. And consumers cant purchase online at MaryKay.com at allno credit card, no ecommerce. You can only place an order on the rep site and wait for your rep to presumably call you for a credit card number. Avon.com opens a new acquisition channel to the customer who either doesnt have an Avon representative or doesnt want one, Miller says.

Multi-Level Marketing Business of AVON:Multi-level marketing businesses sell products directly to consumers.

A multi-level marketing business, also called a direct-selling company, creates and sells products directly to consumers through independent consultants. The compensation paid to a consultant is not only based upon the

amount of merchandise sold, but upon the consultant's ability to recruit new consultants. Many reputable multilevel marketing businesses are in operation. This business model is not to be confused with pyramid schemes, the illegal practice of compensating consultants solely for enrollments, not product sales.

Avon

One of the most famous multi-level marketing businesses, Avon is also a renowned cosmetics and personal care brand. It is a publicly-traded company with 2009 sales in excess of $10 billion. With a strong presence in more than 100 countries, Avon sells directly to consumers through a sales force of 5.4 million independent consultants. In addition to the many well-known cosmetics and personal care products such as Skin-So-Soft, Advanced Techniques and Avon color, the organization markets jewelry and apparel. An Avon consultant can sell face-to-face, as well as via personalized website.

Who is Avon? Avon Products, Inc is a US cosmetics, toy seller, perfume company with markets in over 140 countries across the world and sales of $9.9 billion worldwide as of 2007. Avon Products is a multi-level marketing company or if you have ever hear the term MLM. HOW DOES AVON WORKS If you are considering making money with Avon, here are some facts you should know:

Avon products are sold primarily in retail stores. Avon's product lines include lipsticks, foundations, bath and skin lotions, anti-aging cream, perfumes, as well as jewellery and clothing. Avon uses both door-to-door sales people ("Avon ladies," primarily) and catalogues to advertise their products. Avon also encourages Home Parties to promote products and to accumulate sales.

Strengths:Diversified product. . Reasonable product price

. Customer can have product warranty period for one month. . Excellent brand and corporate image. WEAKNESS:The total bonus is lower than competitors. Difficult to develop male Customers. Product price is in the middle and low range purchase from and high price consumption groups might be lost. THREATS:Multiple sale system to increase business development chance. Advertisement spokesman can increase the willing of purchase from consumers.

OPPORTUNITY:Multi-channels will

increase the cost. It is more complicated in the sale channel management.

DIRECT SELLING:Direct Selling is a distribution method for consumptive product or service through personnel contact (Sales personnel to the purchaser) and at different commercial locations, mainly at home. Here the nature of consumptive and distribution way are emphasized from Direct Selling. Direct Selling can be categorized in two ways in broad sense and in narrow sense. In broad sense, Direct Selling is a selling way that the manufacturer or the product importer sells the product directly to the final consumer. For example, the fisherman sells the fishes to the customers directly and the farmers sell the rice directly to the consumers, etc. However, for further definition, the Direct Selling in broad sense should include the narrow Direct Selling: Product manufacturer or importer, through Direct Seller and consumer and through a way of face-to-face selling, introduces or sells the product or service to consumers. Generally speaking, Direct Seller is not employee of the company and the selling is usually done in non-fixed selling site (Professor Te-Fa Chen, 2006). Today, both direct Marketing and direct Selling are sometimes all called Direct Selling. However, a direct effectiveness selling is that the product manufacturer or importer, through the mail of DM, catalogue, broadcasting, TV channel, internet, etc., transfer the product and service information to the consumer, and the consumer then reply through mail or answer through telephone . Therefore, we can see two keys in Direct Selling: Face-to-face selling and Sell at non-fixed places. Direct selling is a process of face-to-face communication between two persons, and the direct effectiveness marketing is way of selling product or service such as mailing of catalogue, telephone/TV marketing, direct reply to the advertisement or the recent emergence of network marketing. The lack of face-to-face contact is the major difference between Direct Selling and direct effectiveness marketing. Direct selling further includes single level marketing and multi-level marketing. In single level Direct Selling, Direct Seller is also the consumer and Direct Seller sells the product or service of the company to the customer, then the Direct Seller receives bonus from the company according to

his/her sale performance. In single level Direct Selling, the income of Direct Seller comes directly from the retailing profit he/she sells the product to the final consumer. Multi-level Direct Selling is also called network marketing, in addition to getting profit through the sale of product or service, Direct Seller can also become an upstream to absorb or instruct customer to become downstream Direct Seller, then the Direct Seller is awarded with rank and bonus according to the number of persons in his/her downstream and the sale performance. Bonus system is the major difference between single level Direct Selling and multi-level Direct Selling; especially, multi-level Direct Selling is also called Marketing or multi-level Marketing, which is a business operation model selected by most of the Direct Selling companies.

Avon 5P+Aanalysis:1)

Product

Avons product is so diversified and it will mail every year a copy of general catalogue of that year to cosmetology supervisor and VIP member; in addition, it will provide the member 18 volumes of catalogue for one year or special edition catalogue; in the web site, you will see catalogue product of two volumes. Since its product is so diversified, we can not list all of them, and they are only classified in different types; only price range for different product type is listed as follows. To guarantee customers right, within one month after the purchase of Avons product, customer can get refunded for 100% with full satisfaction. 2)

Price

With Low unit price and high circulation in mind, Avon has provided the members with diversified consumption way and discount, for example, VIP member has the favored purchase right of Use it first and pay it Journal of International Management Studies * February 2008 later; meanwhile, VIP and cosmetology representative can purchase ultra low price clearing product, that is, product that is sold in its cost. Since Avon product is so diversified, it can not be fully listed; therefore, in this study, only the price range of different product type . 3)

Place

On Feb., 1998, in one way, Avon recruits more newcomers to expand its Direct Selling net, it also steps aggressively into open shelf cosmetic retailing channel; starting from Feb., it was sold in Watsons and COSMED to try to raise its sale proportion in retailing channel to as high as 8%. Until now, Avon is the largest female catalogue sale channel. Currently, Avon has more than two hundreds thousands members and the annual issuance of its catalogue is over 6 millions.

In addition to the open shelf special counter in Watsons, Avon is only operated in three different sale models, that is, headquarter-operated store, Miss Avon and network sale: 1. Exhibition center: Avons exhibition center is run by the headquarter directly and it not only sells cosmetic product but also provides personal cosmetology service to the customer. 2. Miss Avon: That is, Avon Direct Seller. Miss Avon sells the product through single level Direct Selling model and there is no difference of up-level or down-level. 3. Network sale: As early as Nov. 1999, Avon had seized the newly emergent e commerce wave and started its network selling activity. Avon takes full use of the unlimited nature of network space and combines its new web site launching activity with the real expansion work of special counters. Avon has its own logistic channel also. After customer places the order in the internet, the product can be distributed directly to customers home. Meanwhile, consumer can pay at the convenience store to facilitate the financial flow. In the process of changing sale model and performing supply chain change and in order to ensure normal and high efficiency operation of special counter system, Avon has enhanced its internal management. It has passed the implementation of standardization and internal target management, the operation efficiency of store and sale channel is thus greatly enhanced, at the same time, this is also the guarantee for the sustaining development of the company. 4)

Promotion

Avon commitment day is a nationwide virtual network that Avon has built for research, medical care and social service for the recognition of the complication of breast cancer among the females of different races; starting from 1993, 5 key anticancer fields are the focuses: namely, medical research, clinical care, support and service, education and early detection. More than a decade, Avon Breast Cancer Crusade continuously raise fund and waken people the importance of the finding of breast cancer prevention channel.

6)

Advertisement

In TV advertisement, Avon always resorts to the emotional aspect of a product and uses sensible topic and story to attract customers and to be distinguished from other brand names. In the advertisement of magazine and website, its unique slogan of Understand woman better than a woman. really impresses people on Avons expertise and brand content. What it is different than Mary Kay and Nu Skin is, Avon

devotes to advertisement, no matter it is TV advertisement or spokesman way, etc., Avon put large amount of money into them, Avon hopes that its resort of Understand woman better than a woman can really impress women around the world.

CASE STUDY:HINDU BUSINESS LINE:-

It takes time to understand the Indian market'Ratna Bhushan "We want to be affordable to all consumers across various price points."

Harmeet S. Pental, Managing Director, Avon Beauty Products India Ltd.

It has taken Avon Beauty Products India Ltd, the wholly-owned Indian subsidiary of the $6.2-billion New York-headquartered Avon Products Inc, about six years to get its product mix right. The future for Avon now is penetrating the mass market further, expanding distribution and strengthening its product portfolio, says Harmeet S. Pental, Managing Director, Avon Beauty Products. Excerpts from an interview to Catalyst: Avon Beauty Products has maintained a low profile, even when other direct selling companies have been fairly visible. What would you attribute that to? We came to India in 1996, and took two years to test-market our products. That exercise took longer than expected. We realised there was a need to understand the Indian consumer's product preferences in detail. It was two years later, in 1998-99, that our portfolio lines were redrawn. Our product mix was totally overhauled to suit the Indian consumer's product and price preferences. The first portfolio of products we brought to India was too expensive for the consumer here. The next three years - from 1999 to 2001 - were years of expansion for us. Second, we had begun as a multi-level business in India. But in 1998, we dropped the multi-level system and adopted the single-level direct sales structure. Therefore, for close to two years, we were also trying to understand what kind of sales structure would work

in India. The single-level structure is the model we adopt more or less all over the world. Multi-level sales are not our core competency. How would you rate Avon's performance in India compared to other global markets? We are very small still. Avon India barely accounts for two per cent of the company's Asia-Pacific turnover. But then, you have to view this in the perspective of larger countries. China, for example, is a very large market and among the fastest growing worldwide. Japan and the Philippines, too, are very significant markets for Avon Inc. Having said that, India is perhaps the youngest market in Asia with good growth opportunity. Last year, Avon registered a growth rate of 34.5 per cent over the previous year. In the current year, we expect a growth rate of 25-30 per cent. We closed last year with a total sales figure - inclusive of make-up, skincare and fragrances - of Rs 100 crore. What key focus areas has the company identified now? Last year, pricing was our main focus, and we introduced several new products in the mass segment. Now, we have adopted a two-fold strategy: To strengthen our product portfolio and to expand our distribution network. We want to be affordable to all consumers across various price points. Now, we have make-up, skin care and fragrance products priced to suit all segments. We already have products priced to cater to SEC B and C households. Now we could even consider entering SEC D households. We plan to add another 125 new stock keeping units (SKUs) this year. As for reach, today, we have 1,25,000 distributors, and we cover 30 cities directly and another 50 through indirect channels. We have projected 20 per cent growth in the number of distributors by the end of this calendar year. Which is your best-selling product in India? In India, make-up products (colour cosmetics) are leading in terms of product sales. Skin care and fragrances account for more or less a similar percentage of sales. Also, across all three categories, our products are now priced more or less the same as competitors. Within our mass line, for example, Avon's talcs are priced similar to Pond's, our lipsticks and nail enamels are in the same price bracket as Lakme, and our fairness creams are priced competitively against, say, Fair & Lovely. To be specific, our lipsticks are now priced upwards of Rs 40, while our least expensive nail enamel is priced at Rs 25. For the record, three years ago, our least expensive lipstick was priced at Rs 80-90, while our lowest-priced nail enamel was priced at Rs 100. Brands sold through direct selling companies are obviously not tracked by AC Nielsen/ORG, but according to an internal track, Avon has a five per cent share of the domestic cosmetics, fragrances and skin care market. Avon Products Inc's global portfolio comprises several product categories other than cosmetics. Is Avon India planning to diversify beyond personal care products?

Worldwide, our competency is cosmetics. But we are looking at newer categories. We plan to bring in products such as jewellery, intimate apparel, and nutrition and well-being products (for example, nutritional supplements and anti-oxidants) from our international portfolio. We are currently evaluating opportunities, and will foray into at least one of these categories within the next 12-15 months. Initially, we will import these products, for say, about two years, after which we plan to indigenise production through third-party manufacturers. For Avon, what is the time gap between introducing products in the US and other developed markets, and India? Avon Inc has a tradition of introducing a global fragrance every year, in November. For the Indian market, too, we have maintained that, and the products are brought here simultaneously. For make-up, we obviously have to adopt an Asia-Pacific strategy, owing to factors such as colour sensitivity. What are the challenges facing the Indian direct selling industry today? The biggest challenge facing the industry is that of the proliferation of scam companies. The Indian Direct Selling Association (IDSA) had submitted a draft Act to the Government to regulate the direct selling industry two years ago. The industry has raised several issues such as protecting consumers against pyramid schemes, legitimising the industry, and distinguishing genuine direct sellers from look-alikes. How many contract manufacturers does Avon India have? Our third-party contract manufacturers include Aero Pharma, which manufactures lipsticks, pressed powders, lip balms, fragrances, scrubs and face masks, Shree Shiddhi Vinayak (which produces talcs), Assam Cosmetics (which makes cold cream and body lotions), and Colortek (manufacturer of cold cream, sunscreens, body lotions), among some others.

For 125 Years, Avon has worked towards improving the lives of women around the world. Avon pioneered the concept of the unique earning opportunity through revolutionary direct selling business model. This has resulted in financial independence and personal empowerment of women. Over the decades, Avon Lady has created an identity for herself and for other women. Hemant Singh, Managing Director, Avon India

Having an experience in strategic planning and management for over 27 years, Hemant Singh is responsible for driving growth and the expansion of the company's market share in the country. He joined Avon Asia Pacific in 2009 as Executive Director. Prior to his association with Avon, Singh has served Modicare Ltd for seven years where he acquired the position of CEO. He began his career with Hindustan Lever Ltd where he worked for over 14 years, followed by six years stint with PepsiCo. Avon's product line includes beauty products and fashion accessories, with well-recognised brand names

such as Avon Color, Anew, Skin-So-Soft, Avon Solutions and Avon Naturals. In a conversation with exchange4medias Preeti Hoon, Singh talks about the future of beauty solutions and the tricks of a rather successful trade.

Q. How has the journey been since Avons inception in India? What have been the changes in the cosmetic industry ever since then?

A. Since 1996 when we started operations in India, we have come a long way. Over the 15 years, the cosmetic industry has undergone a significant change and is now one of the most rapidly growing industries. Today, it is providing lucrative opportunities for existing as well as scope for new market players amid changing lifestyle and increasing consumer awareness. The Indian cosmetic market growth is accredited to female consumers, but with the increasing influence of the media, the male consumers are also exposed to the importance of this sector. We are one of the largest direct selling companies of beauty products in the country and have managed to become a house hold name amongst our target audience.

Q. This is your 125th year of existence, what does it mean to the company? Tell us more about the $1 million Avon Global Believe Fund...

A. For 125 Years, Avon has worked towards improving the lives of women around the world. Avon pioneered the concept of the unique earning opportunity through revolutionary direct selling business model. This has resulted in financial independence and personal empowerment of women. Over the decades, Avon Lady has created an identity for herself and for other women. As a company, our iconic beauty brand and leadership in direct selling has kept us at the forefront over these years. We are the largest creators of economic opportunities for women around the world. Today, we are serving more than six million Avon representatives in over 100 countries. As part of our endeavour to empower women, Avon Foundation for Women, the largest corporate-affiliated philanthropy, focuses on issues related to women. Avon global philanthropy has donated more than $800 million to improve womens health and safety around the world. Avons new $1 million commitment is in addition to the companys

previously announced financial donations to other major partners in global efforts to stop violence against women including: the United Nations Trust Fund to End Violence Against Women; Vital Voices and the US State Department to establish the Global Partnership to End Violence Against Women and Cornell University Law School for the creation of the Avon Global Center for Women and Justice.

Q. 2011 marks 15 years of Avon in India. What is the road ahead for the brand? Any expansion plans?

A. Avon India is a potential growth market for Avon Global. Thus we have robust plans for the coming years. Our strategic pathway would include expanding our product portfolio, increasing our representative base and entering new geographies within the subcontinent.

Q. How was 2010 for the brand?

A. 2010 marked a year of many developments for Avon India. We launched our first stateof-the-art manufacturing facility in Dehradun. With the production capacity of 50 million units per year, this facility operates in full compliance with Avons global manufacturing processes and quality standards. Spread across 9 acres, the manufacturing facility is equipped with high technology and has multi-product manufacturing capability. It produces world-class products in various cosmetic categories like skincare, color and toiletries including creams, lotions, lipsticks, talcum powder and cleanser.

Q. What were the major developments of the year 2010?

A. Last year, Avon also strengthened its position in the rapidly growing beauty and cosmetic market in India by launching 5 world-class Avon Beauty Zones in Bangalore, Delhi, Mumbai, Kolkata and Chennai. Avon Beauty Zone is essentially a one-stop point where the Avon independent sales representatives can experience world-class quality products, place and collect orders; attend extensive sales, product and beauty training programs and attend monthly campaign meetings. We also introduced the International Jewellery Collection to give a complete beauty offering to our consumers satisfying their beauty needs. In the last quarter of the year, we also extended our presence in Southern India by opening market in Chennai. Avon globally launched Avon Voices, first-ever global online singing talent search for women and songwriting competition for men and women in celebration of its 125th Anniversary. A renowned judging panel of music industry leaders from around the world includes: Fergie, six-time Grammy award winner; Diane Warren, legendary songwriter. We received unprecedented response from Indian participants and thus added 3 very popular Hindi songs to invite more and more Indian talents to participate in the talent search. The submissions were on till Feb 13th 2011.

Q. Since the products are not sold through retail, how important is advertising for the brand?

A. We understand the importance of advertising and realize that it is critical for brand awareness. And therefore we have huge plans for advertising in the coming years.

Q. Which are the various promotional activities planned in the coming days?

A. As part of Avons 125 Year celebration, we will be planning activities to create brand awareness and reach out to our consumers.

Q. How is the digital medium perceived by the brand? Have you kept aside any

digital budget?

A. Today, with the advancing technologies, more and more brands are optimally using digital medium to connect with the target audience. Last year we started with e-brochure that can help while ordering online. It is a faster mode for our representatives to place and track their orders. We also entered the social media space by opening Avon India corporate page on Facebook and within a span of a month, we saw tremendous response