Avon's direct sales model may transform into retail

The global economy is declining, and many multinational companies have not escaped this disaster. Avon, the world's largest direct-selling cosmetics company, has begun to take action to save its declining profits. At the same time, Avon is gradually shifting from direct sales to retail business models. However, the channel reform initiated by Avon this time is not optimistic about the industry to a certain extent. Avon's development path is extremely confusing.

In China, Avon is asking its distributors to choose between retail and direct sales, and most of them have chosen the retail business, which they are good at. However, industry insiders believe that if the contradiction between Avon's original stores and direct sales channels is not resolved, then the transformation will be difficult to succeed. Due to the lack of direct sales market and human resources, Avon's transformation to a full direct sales model was not successful. Avon's transformation to retail was quite unexpected in the industry. Therefore, it embraced distributors again and switched to the specialty store retail business. Avon's specialty stores rely on sales to make profits, so it has to compete with traditional daily chemical brands, but it lacks the strong market and human resources investment of traditional brands such as Procter & Gamble and L'Oreal, so it will face huge competitive pressure. An industry insider believes that the prospects for Avon's specialty stores are not optimistic, and distributors still need to follow up cautiously.

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