Avon SWOT analysis – SWOT analysis of Avon: Avon Products Inc that is also called Avon is a directly-marketing business that sells cosmetics, household products as well as fashion accessories as well as personal hygiene products. Based in London the UK Avon reaches its customers around the globe via its network of 7.2 million employees by means of multi-level marketing.
The company was first set up in 1886 has been operating for over 130 years and is able to sell its products in various regions including the Middle East, Africa, Latin America, Europe, the UK, the USA, and the Asia Pacific. The company made profits of 6 billion dollars in 2016 and is the second-largest directly selling business in the world.
Avon fun facts: Avon was the first beauty company to launch an e-commerce site in 1996! And they are one of the most talked about Beauty Brands on social media.
About Avon – SWOT analysis of Avon
Company: Avon Products, Inc.
CEO: Angela Cretu
Founder: David H. McConnell
Year founded: 1886, New York, New York, United States
Headquarters: London, United Kingdom
Annual Revenue: USD3.63 Billion
Profit | Net income: USD$377.7 Million
Number of employees: 23,932
Products & Services: Makeup | Cosmetics | Beauty, and Technology | Personal Care Products | Skin care products
SWOT analysis of Avon – Avon SWOT analysis
SWOT Analysis Of Avon is brand-based. SWOT Analysis of Avon evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing Avon’s SWOT Analysis. Below is the detailed SWOT Analysis of Avon.
Let’s talk about Avon’s SWOT assessment.
Strengths of Avon – Avon SWOT analysis
- Clear Specific Target segment: Avon has a distinct segment it targets: women. In order to attract their customers, they ensure that they give preference to women when it comes to the choice of representatives. Their products are also made intended for women, and the business with regard to their social activities also has an unwavering commitment to women’s self-determination.
- Stakeholder relations that are good: Avon clearly understands that the success of any direct-marketing company is based on the satisfaction of its customers and that’s why the company is focused on increasing the value of every stakeholder, whether it is its agents, partners, or clients.
- A strong brand recognition: Research suggests that Avon is among the top-known brands with the brand recognition of around 90%. To ensure there is enduring branding and brand recognition company makes sure that its products are able to meet every need for personal and beauty of different segments like women, men, and children.
- The maximum return: Avon guarantees an extra income for all its employees with two choices, either a sales representative or a leader. The former will be accountable for direct sales, the latter oversees the team of representatives. Each receives a commission on sales that are made by each one of them.
- Utilizing technologies: Avon uses technology to connect with their customers as well as other stakeholders. A few of their latest technology advancements comprise the use of social media environments that can be customized with e-brochures, monitoring, and e-brochures for sales executives.
- Cultural Consciousness: Avon has clients all over the globe, which means they cater to a variety of hair and skin within their cosmetic segment. Most items they offer are created following careful study of the market segment they are designed and the brand is sensitive to cultural differences in advertisements and brochures that are used across all regions.
Weaknesses of Avon – SWOT Analysis Of Avon
- Change in women’s status in society: Earlier there were more women in the home, and as more women entered the workforce, the number of homemakers who wanted to work as sales reps for Avon to earn an extra income began to diminish in numbers.
- Online retailers are competing: The biggest reason why people opted to buy Avon products was the convenience. The development of online stores, the ease of shopping at home, as well as the option of having quality brands, have altered the preference for online stores in comparison to Avon.
- Overly optimistic expectations: In a bid to beat traditional and online retailers, Avon attempted to make untrue promises about its quality goods as well as the benefits that it offered its partners. This unrealistic expectation led to the loss of the face of Avon as a brand.
- The drastic drop in US revenue: The dip in US sales created panic for Avon as it was among their top market by shares. It was associated with a decline in the number of representatives. The combination of these two factors led to Avon shifting their focus away from low-income segments as well as regions such as Vietnam, South Korea, and Africa.
Opportunities of Avon – Avon SWOT analysis
- Selling on websites: Apart from direct selling, Avon can also use the services of online retailers such as Amazon and Flipkart to ship the product to the customers. This can help them reach larger markets at a lower cost.
- Need to earn extra money: As the rate of inflation rises, individuals employed are also seeking additional income sources to supplement their income source. This creates a variety of possibilities for multi-level businesses to expand their reach and, in turn, bring increased business.
Threats of Avon – SWOT analysis of Avon
- Competition: The main competitor to Avon Amway is Amway.
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Overview Template of Avon SWOT analysis
Avon can be recommended to continue its selling strategy of relying on multiple distribution channels. At the same time, it is important to prioritize online sales and create more opportunities for customers. For example, the option of consultations with shopping assistants can be introduced via Avon’s official website. Feedback from customers can be initiated on social media to better understand what features are valued or disliked by customers. Today, Avon is one of the most demanded and effective companies in the global beauty market, but it needs to increase its research and development to remain successful. The implementation of a new re-branding campaign is likely to drive customers’ interest and increase sales.
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