Door to door, but digital: Avon CEO on how a historic firm gets with the times
Think of Avon and the image that emerges is probably a pretty wholesome one – an Avon lady, or perhaps an Avon man, presenting their make-up wares in a pleasantly spruced-up living room.
In your mind, it’s probably set in black and white too. But times are changing.
The cosmetics firm made its mark across the world as a direct seller – millions of entrepreneurs under one big Avon-branded umbrella.
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So when a global pandemic comes along, you’d be forgiven for thinking that might be something of a fly in the (affordable) ointment.
Not so, says CEO Angela Cretu. It was an, in fact, an opportunity to speed up a digital transformation.
“We moved at warp speed to transform the business model from a ding-dong direct selling model to a digitally led beauty company. In the last year we’ve really seen a fantastic transformation in the way we connected with our people around the world – so yes, clearly challenging, but equally a tremendous learning experience,” she tells me.
Still a big player
Any firm with sales channels in 55 countries and distribution in 25 more is a big operation.
Revenues of $4bn even amid a Covid-19 pandemic is nothing to be sniffed at, either.
But it’s the millions of representatives that Angela feels most passionately about – and has a responsibility to, she tells me.
“We want to give them an opportunity to earn and learn, understanding that financial independence and access to information and education is really helping them build an independent life.”
Part of that process means equipping the modern-day Avon Lady (and Man) with the digital tools they need to connect with their customers – especially amid a global pandemic that Cretu says took away “high-touch” relationships.
“Once we tried these new ways to connect with customers,” she says, her representatives “loved it.
“We accelerated the pace of creating more digital tools for them, and applications that are now live in all our markets allow them to share the brochure on whatsapp, to share content on social media, to manage and grow their businesses from their mobile.”
Cretu says that as restrictions have relaxed in some parts of the world, reps are already beginning to use the combination of digital contact and human relationship-building in a hybrid way.
Where Avon has gone, perhaps the rest of the world may soon follow.
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Innovate to thrive
Cretu’s innovative streak extends to the product suite. Avon have invested heavily in recent years in research and development and Cretu is particularly proud of a new skincare formula which saw the firm win an Edison prize.
But she also says Avon needs to innovate in its messaging and what it does as a firm.
“Everyone wants a personalised relationship, for a brand to recognise me for my unique needs,” she says. That should be an advantage for a firm like Avon, who have built long-term customer relationships for years, but Cretu recognises that is not enough anymore.
There is “also a demand of customers to work with those companies to give back to their communities, more than what they take.
“For real, not just for creating a PR campaign on TV.”
Cretu points to Avon’s philanthropic contributions – more than $800m worth of contributions to fight female cancers since 1992, amongst others – as a sign that they get it.
Either way, Cretu certainly talks a very modern game for a brand that was probably in need of a refresh. Time will tell if it works.
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