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By J. Alex Tarquinio
New York Times
Published on Friday, Nov 28, 2008
The cosmetic company Avon Products traces its roots to the horse-and-buggy days of the late 19th century, when sales representatives sold perfume door to door, often to women who lived far from big department stores.
This American frontier model has translated well to countries like Brazil and China, where large populations are dispersed across a vast countryside. Today, more than two-thirds of Avon's sales are outside the United States.
The direct-selling model — where independent sales representatives do not work directly for Avon — makes it easier to break into new markets, says Avon's chairwoman and chief executive, Andrea Jung. About 5.5 million sales representatives now sell Avon products, be it lip gloss in Shanghai, China, or face powder in Rio de Janeiro, Brazil.
Jung, who was born the daughter of Chinese immigrants in Toronto and moved to a suburb of Boston when she was 10, recently discussed how she thinks the company's direct-selling model can improve the lives of women in developing countries and where the next big growth opportunities are for Avon.
Q: Since you became the chief of Avon in 1999, the company has expanded into emerging markets. Why do you think your direct- selling model works so
well in developing countries?
A: It is part of a movement around the world for women to have more economic independence. From her very first order, a representative does not have to pull the money out of her pocket. We send her the products, and she pays us after she sells them.
Q: And the majority of your independent sales representatives are women?
A: Well over 95 percent are women and the men are often in Avon couples. I love those conversations, where the husbands tell me that they quit their jobs because their wife's business was doing so well, so they've joined forces to run the business as a couple.
Q: Do you feel that your experience growing up as the daughter of Chinese immigrants has influenced your career?
A: It has given me a global vantage point, being the daughter of immigrants from China, who had nothing when they came here. And now I am leading a company. It speaks to something deep in me, the concept that you don't have to start with anything. The direct-sales opportunity allows people to change their lives.
The cosmetic company Avon Products traces its roots to the horse-and-buggy days of the late 19th century, when sales representatives sold perfume door to door, often to women who lived far from big department stores.
Get the full article here.
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