Avon re-jig focuses on Eastern Europe and China

By Simon Pitman

- Last updated on GMT

Avon has made changes to its global management structure that
reflect the importance of its key growth areas of Eastern Europe
and China, as markets in Western Europe and the US continue to
suffer from a prolonged period of stagnation.

The restructuring, which will be implemented from January 1, 2006, means that Avon will now manage its Central and Eastern European division, together with its China division as stand-alone businesses, a move that reflects their 'strategic importance and long-term growth potential'.

The move will take the upper management team closer to both sales teams, as well as the individual manufacturing and distribution businesses operating in the two rapidly expanding regions.Avon said that the move would also eliminate the 'layers' that currently exist in the company's management structure, as well giving the management 'a clearer line of sight to day-to-day business operations'.

This means that Avon's geographic business structure now comprises six regions, which also include North America; Latin America; Western Europe, Middle East and Africa; and Asia Pacific.

The appointments include Bennett Gallina as senior vice president of the China; Western Europe, Middle East and Africa; John Higson as senior vice president of Central and Eastern Europe and James Wei as senior vice president of the Asia Pacific region.

"Our rapid growth in recent years requires a new way of operating that improves focus on priority geographies, reduces operating complexity, and allows us to achieve the full benefits and efficiencies that come with increased scale,"​ said Avon CEO Andrea Jung.

"By flattening the organization, strengthening integration and centrally managing the global brand and supply chain functions, we will significantly increase speed and flexibility in decision-making, become closer to our representatives and customers."

In addition to the geographical changes, the restructuring also see its Brand Marketing and Supply Chain functions become unified Global Business Units, with regional staff reporting directly to the respective division leaders.

The newly appointed leaders of these divisions will be John Owen, who will become senior vice president, Global Supply Chain and Geralyn Breig, who joins the company to become Brand president.

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