In 1886, from a small NYC office, David H. McConnell founded Avon, creating a single fragrance (Rose Extract) and recruiting a team of women to be sales representatives. His aim was to give these individuals economic freedom through a move that many looked at as a radical business model at the time, which still stands strong 138 years later. Having remained stable as a business through significant events in history, from WW1 to the more recent COVID-19 pandemic, the brand has encouraged female entrepreneurs to earn an independent income through its door-to-door (D2D) selling program for a commendable stretch of time.
However, as to be expected in the modern world, consumer preferences and shopping habits are constantly evolving, and for Avon, this means shoppers have begun to seek out the brand beyond its once popular D2D model. Over the past few years, in a passionate effort to remain a competitive player in the industry, the brand has made changes from its traditional business model, moving towards online sales, franchise stores, and partnerships with retailers across Europe.
The commitment to change began in 2020 after being acquired by Natura &Co. in a $2B deal. During this year, Avon took on design agency Free The Birds to work on its digital stance, brand identity, and packaging aesthetics to keep up with the modern consumer. Shortly following, in 2021 Avon ditched the once famous “ding dong, Avon” catchphrase, introducing a digital selling model with the launch of the Avon On app. The app was designed to enable Avon representatives to sell digitally, as well as improving the brand's mobile user experience, allowing sellers and consumers to connect easily. The digitalization of the business worked in the brand’s favor, as online Avon sales grew to 2.7x their pre-pandemic levels shortly after the launch of the app.
Avon CEO Kristof Neirynck, who was CMO at the time of the brand’s digitalization, spoke on the choice to introduce app-based selling. “In my previous role, I talked a lot with consumers to understand the barriers to purchasing Avon. Among the main reasons were always the lack of accessibility to the brand and the preference to purchase in retail and online,” Neirynck tells BeautyMatter. “That’s why expansion into other channels has become crucial to be competitive in the market and it is a key part of our omnichannel strategy.”
Avon’s representatives still remain the core of its brand operations. “Our business model is built around human connection, and we believe in the power of personal relationships,” Neirynck adds. “Relationship selling remains at our core and key to our success, as our Reps provide truly personalized experiences with tailored beauty advice and are trusted experts among their communities.”
To strengthen in-person selling, Avon began to open franchise stores across Europe almost four years ago. The rep-run franchise kiosk model began in Turkey with 75 stores, set to grow to 80 by the end of 2024, and has since been rolled out in the UK (2 kiosks, 3 by EOY) and South Africa (2 kiosks), with upcoming openings in Romania (5 kiosks by EOY, becoming 10 in Q1 2025), with plans to expand to additional markets throughout 2025.
“Our Avon Reps are closer to our products than anyone and have more expertise in selling their benefits to customers, so they are a natural choice for us when looking to expand our presence in a more traditional retail setting,” Neirynck continues. “By opening Rep-run franchise stores and kiosks, we’re bridging the gap between door-to-door selling and retail. It provides greater opportunity to our Reps to diversify their business and take advantage of the benefits of in-store sales and allows us to tailor our strategy by market to meet local customers’ shopping preferences.”
Beyond franchise store selling, Avon has expanded its retail footprint to select beauty stores across the globe. These locations include Turkey (launching in 100 Watson stores by EOY), Czechia (available in 180 Rossman stores since September 2024), Poland (trial launch in 500 Rossman stores since October 2024), Philippines (launched in 110 Watson stores in October 2024, growing to 500 by EOY), South Africa (launched in 300 Clicks stores in September 2024), and Bulgaria (stocked in 100 DM stores by EOY).
Avon’s retail partnerships began in the UK, with a pilot program in Superdrug in September 2023, stocking 150 of the top-selling makeup, skincare, and fragrance offerings from the brand. “Early results of our trials gave us lots to feel optimistic about, and we have loved seeing consumers reconnect with the brand and find us in places they weren’t expecting,” Neirynck attests. “One of the big advantages of having a presence in such an established space is that we’re able to drive greater brand visibility and be more present where consumers are shopping.”
With the success of the Superdrug trial, Avon signed a permanent contract to be stocked in 600 Superdrug stores across the UK, and recently revealed plans to expand to a further 650 by EOY. Neirynck spoke of the initial hesitation when launching into Superdrug, as the move signaled a complete change from the business’s original selling model. “When we started this partnership with Superdrug there was concern about the impact that this would have on our Reps’ business. But what we have seen in the UK and other markets is that Reps within a 5-mile radius of a retail store sell 18% more than those who don’t have a store nearby.”
Neirynck further explained the benefits of being stocked in a retailer for individual online Avon reps. “The increased credibility and visibility of the brand through retail works hand-in-hand with the personal relationships built through direct selling to benefit both sides of the business,” he adds. Additionally, Avon’s retail partnerships have a selection of around 10% of products, whereas all reps have close to 100%, thus consumers who are inspired to shop Avon through seeing it stocked at retailers can go on to have the entire collection at their disposal through online reps. “Our reps are in all respects real beauty experts able to provide personalized advice to their customers and also have the entire complete range of products at their disposal,” Neirynck continues.
Having an omnichannel strategy is also helping Avon to sell different types of offerings in adaptable ways that were not previously possible. According to Neirynck, in direct online selling, the strongest categories are makeup and skincare, but in retail concepts such as Superdrug, fragrance is doing far better than in direct selling. “This, of course, makes complete sense; customers want to smell a fragrance, and this is something that bricks and mortar retail is able to facilitate much better than direct or online selling,” he says.
Neirynck believes that changing Avon for the modern consumer was the only way to successfully sustain the business. “Digitalisation and our omnichannel strategy are fundamental in ensuring Avon continues to evolve as the beauty industry does. We recognise that customers like to shop in different ways, and evolving with the changing customer is crucial to remaining competitive,” he relays. “By the end of 2024, Avon will be available in 2,300 stores via our partnerships with beauty specialist retailers and online via ecommerce sites and marketplaces all over the world. This means more customers will be able to shop us the way that works for them.”
Going forward, beyond retail strategy, Avon has a focus on attracting younger consumers from the next generation of beauty lovers, Gen Z and Gen A, aiming to do so through innovative new marketing methods. “We are always looking for new, unexpected ways and places for our brand to appear, such as partnering with influencers, participating in festivals or building brand partnerships, with the aim of making our brand more accessible and known—especially with new and younger generations,” says Neirynck.
As part of the hope to connect with a range of consumers, Neirynck outlines the need for the brand to continue to work on its sustainability efforts, after being the first cosmetic company to eliminate animal testing. “Sustainability has in fact become a key differentiator between brands, especially in a crowded market such as beauty, and we are striving to be a more sustainable company, from the way products are created to the reduction of environmental impact of operations,” he says.
The CEO shared that Avon has “ambitious targets” to reduce the packaging of its products, switching to 100% sustainable paper and increasing the use of recycled and recyclable materials. “80% of our packaging is already reusable, recyclable, or compostable, with an aim to reach 100% by 2030,” he adds. The brand is also on a path to becoming committed to full transparency and certification for its critical supply chains by the end of 2025.
Avon’s transformation in the past few years reflects a bold commitment to staying relevant in the competitive and fast-paced beauty environment. Through embracing digitalization, expanding into retail, and modernizing its approach to consumer engagement, the brand is working to redefine its business model while maintaining its core values that have brought it success for over a century. The brand's ability to balance innovation with its legacy of empowering Reps highlights its resilience and adaptability, setting the stage for a promising future that honors its rich heritage.
