2015-09-22 14:25
Avon ＂prostitute＂: a Japanese Empire decline of war
CNDSN on September 22 news (direct derivative news agency) recently, a "prostitute" the news again the Avon pushed to the cusp of public opinion. It is said that AVON is working with a number of private equity Holdings Company on the transfer of part of the equity negotiations, the auction process will start next week. However, AVON has not disclosed the number of specific transactions and trading hours. Insiders said the industry, AVON wants to try the overall sale, but there is no one to pick up the disc.
AVON was founded in 1886, in 1990 to enter the Chinese market, has been 25 years. And AVON is the first to get the business of the Ministry of Commerce direct sales business license, enough to see how AVON has been. Now why go step by step to "sell" situation?
Scandal ridden dilemma
The collapse of the dam has never been a momentary thing, but a long time of continuous erosion caused by. 2008 AVON "bribery door" event is the beginning of all this, since then the Avon Co into a reputation damage, and other executives were expelled, the results fell sharply, and a series of embarrassing.
Bribery door event will be exposed to the public under the AVON. AVON had to fall into the protracted business survey, the May 2011 Avon Co to dismiss the global internal audit and safety department heads, as well as three Chinese District executives. As the investigation continues, AVON's internal investigators found that in addition to China, its operating agencies in Brazil, Mexico, Argentina, India and Japan also exist to pay the officials to the problem.
Bribery door event upgrade, resulting in a substantial adjustment of personnel, but also makes AVON sales in the industry disadvantage. 2011, Amway preliminary sales of 26000000000 yuan, AVON has stopped at 2000000000 yuan, fell to the industry sixth.
In August this year, Avon has once again burst scandal, a former Avon customer handler sued Avon executives illegal, and in the complaint wrote: "avaricious bosses control celebrities to help their promotional products.
Numerous scandals make capital and consumers have lost trust in the Avon, and Avon also from bribery began change cannot recover after a setback, the performance of successive years of decline.
The self-help type quench a thirst with poison
In the face of difficulties, AVON also tried to save themselves, but the series of measures taken to take it seems to have no effect, but accelerated their own decline.
Although always wanted to wash white, but many years of bribery door is AVON can not erase the black history. In December 2014, AVON paid $135000000 to $to try to settle the bribery case in China. But the case did not end on this. By the end of 8 this year, according to Reuters, the Avon Co to seek approval of $62000000 to reach the u.s.. The continued loss of Avon, is an increasing financial pressure last ditch selection.
Change of business model does not help Avon turn back the powers of darkness. 2010 Avon, Avon appointed had appointed South general manager of the Latin American region Oddone Azee for Avon, general manager of China, Avon China business model were "reinvent the wheel" type of transformation will set the direct sales and retail in a composite mode gradually shifted to direct sales model. April 2014, general manager of AVON Taiwan District, Ye Jinghui, President of AVON Greater China region, and put forward in the Chinese market to open up the mall channels, but there is no substantive initiative.
In 2015, AVON has sharply reduced its business in the Asia Pacific region, particularly in China, and has started to implement a series of layoffs in January this year to save money. In 25 years, China for Avon market position one can imagine. Reducing China's business and job cuts are on the surface, but in fact, it's a big weakening of AVON.
And fate seems to be joking with AVON. In May this year, Avon Co bought by a scam to get an apple of sodom. Fake world's leading private equity firm TPG capital of PTG Capital Partners Ltd., on May 15, brought close to 3 times the market value of a full takeover of Avon products, Inc., Avon, which makes Avon shares soared 20%, but the offer was quickly expose as an attempt to manipulate the profit shares scam.
In July, the Avon Co sold its non core business to Boz Wall Green, the UK's natural skin care brand, Earle Liz, to strengthen its capital structure. As of the end of 6, the company has cash and short-term investments of $697000000, compared with the end of the end of 961000000, a substantial reduction of $2200000000, and its long-term debt has reached $2014, and is subject to the standard universal".
What is the reason for the Avon step wrong, wrong step, the final demise?
Continuous corrosion of commercial bribery
2008's bribery door is a major turning point for AVON. The huge commercial interests of executives to the very means of profiteering. This is tantamount to a suicide type of indulgence. In fact, there is a commercial bribery companies and more than AVON, IBM, SIEMENS and other companies have also been out of commercial bribery scandal. And Avon never recovered. Lies in itself and not enough attention, that is commercial bribery has eroded the strength of the company capital, and consumer trust.
Natural capital profit, multinational companies lack of business ethics are the internal reason led to commercial bribery this global phenomenon, and on the external environment, industry monopoly industry and government and strict control of the opaque nature of existence is the privilege of and to a certain extent, easy to lure multinationals in front of the unspoken rules of the desperate become commercial bribery "disaster".
Self lost business channels
Influence of bribery door time, Avon has been in the adjustment of personnel structure. And such intensive personnel adjustment will inevitably bring a lot of negative impact. The most important is the business model of the transition. In fact, AVON's positioning has been not accurate. Whether it is pure direct selling, direct sales + monopoly or direct + retail, the industry has a very successful example. Before 2008, AVON is still able to Amway, perfect compared with the direct selling companies. And now, AVON in addition to negative, acquisition and other news, it seems to have been unable to attract the eyes of the industry.
Cosmetic experts fengjianjun also said: "(strictly sense,) I don't think Avon is a cosmetics company, before it promotion is dominated by direct, later became the franchise, is atypical format; Avon in our industry pays close attention to very low now few in the industry to it as a conversation piece, a topic to discuss; and, combined with the Avon in China sales turnover and market share etc., it can be said, it is lost in China's market strategy."
If the brand aging in vain
The aging of the brand is another important reason for AVON to turn over the stand up. May be trapped in the scandal, the decline in performance, in addition to the occasional launch of the new product, AVON in the maintenance and updating of the brand has little to take any measures.
AVON brand in the Chinese market has entered the early, the development of the advantages of fast. But increasingly fierce competition makes even Lancome, Estee Lauder such a big still need a lot of advertising to continue to maintain and improve the exposure rate, to maintain the brand image. Coupled with the competition of Japanese and Korean companies, the survival of the brand AVON has repeatedly been compressed. A few years ago, can see a lot of Avon brand advertising in the media, but now, Avon advertising is almost extinct. And this situation has not been improved, no brand strategy based on the trend adjustment, AVON brand has been aging, a lot of 80 and 90 will believe that AVON is the last generation of people's brand".
At present, AVON's official website still shows the annual sales income of more than $11000000000, the world's most influential women's company, and so on. Compared Avon today's distress, can make people sigh. AVON's end we can not be expected, but it can be expected that the once daily chemical giants are gradually fading. 3
(original title: Avon: a Japanese Empire downfallen war)
Editor: small Shen
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