Business Description

Avon Products, Inc. is a manufacturer and distributor of beauty products and related products. Beauty and Fashion & Home are the Company’s main product categories. Beauty includes color, fragrances, skincare, and personal care. Fashion and Home include fashion jewelry, watches, and footwear as well as gift and decorative products. The company’s business is conducted worldwide through one channel: direct selling.

Segments are based on geographical operations and include units of commercial business in Latin America; Europe; the Middle East & Africa; North America and the Asia Pacific. The Company operates sales in 62 countries, which includes the United States. These countries and territories are not the only ones where their products are sold. The majority of its Beauty Products are manufactured and packaged by the Company.

Key Financials

Revenue (US$ Mn)

Avon Products, Inc.’s annual revenue for 2021 was US$ 768 Mn, a -23.02% decrease from 2020
The annual revenue generated by Avon Products, Inc. in 2020 was US$ 998 Mn

Operating Income(US$ Mn)

Avon Products, Inc.’s operating income for 2021 was US$ 19 Mn, a -20.59% decrease from 2020
The operating income generated by Avon Products, Inc. in 2020 was US$ 24 Mn

Operating Margin %

Avon Products, Inc.’s operating margin for 2021 was US$ 2 Mn, a 4.35% increase from 2020
The operating margin generated by Avon Products, Inc. in 2020 was US$ 2 Mn

SWOT Analysis

Strength

Unique Business Model

It is the largest direct-selling company in the world. Avon’s strengths over the years have been its direct-selling model and large sales team. Direct-selling is a low-cost business model that requires little to start up. It allows the company to expand in different markets. It offers licenses for its products to be sold through its beauty centers, and other direct-to-consumer channels.

This complements the direct-selling efforts. The company sells merchandise online via its own websites and those of third parties in the UK and other countries. Avon has been able to maintain its market leadership position thanks to its unique business model and a range of market-recognized brands.

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