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Avon still hopeful in Asia

By Lucy Whitehouse , 25-Feb-2014
Last updated the 24-Feb-2014 at 15:53 GMT

Avon has announced a shake-up of its Thailand approach, suggesting the beauty giant is seeking new avenues for boosting sales in Asia after its recent exit from South Korea and Vietnam.

Although direct selling in Thailand makes up 60% of total non-store retailing sales, last year’s flat growth sales for Avon have prompted the company’s need to reassert its presence, the beauty brand told the Bangkok Post.

Asia focus

The rethink on the brand’s Thailand strategy aligns with its wider emphasis on getting to grips with Asian markets: at the start of this year a new president of the Asia Pacific region was announced.

Avon made explicit their hope for the appointment to tackle its struggles in the region, stating the new president, Nilesh Patel, will have responsibility for “stabilizing the market, and strengthening and growing the Avon business throughout the region.”

"Nilesh has a strong track record of strategic and operational excellence, which will be critical as we work to rebuild our Asia Pacific business,” Sheri McCoy, Avon's Chief Executive Officer, said of the appointment.

This focus on Asia comes as the company feels the hit of poor sales globally, particularly in the US, where the brand is also facing a bribery probe US Foreign Corrupt Practices Act for alleged activities in China.  

Thailand action

This Asia focus has turned on Thailand, with Avon looking to capitalize on the country’s upcoming move to digital television and raise brand awareness with direct TV marketing, including the launch of its own cable programme.

This multimedia progression from their current catalogue-based model will participate in the brand’s larger strategy of courting a younger consumer group, with particular focus on customers under 30.

The cosmetics company hopes to speak to multiple generations of consumer, with the launch of Avon’s range of health and well-being products to complement their cosmetic offering in the country sharing the motivation of attracting a younger audience.

The beauty brand hopes sales will grow on a par with the country’s GDP in 2014, following the strategy rethink. 

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