2016-06-28 15:37

 

AVON bumpy return difficult to return to the peak product aging problem is not resolved

 

[straight news network Beijing June 28 news] (Beijing Daily) has been quiet for many years, the industry that exit the Chinese market has been imminent Avon is brewing regression. Recently, the reporter was informed that AVON will upgrade the existing franchise stores at the same time, start brand rejuvenation strategy, increase product line for the target group of young consumers to upgrade. From this point of view, January March Avon large shareholders Cerberus capital management, the Avon revival plan will soon in China formal be born. The industry believes that the aging of the product AVON wants to achieve through the young consumers need to be longer than expected.
Marketing promotion
26 years after entering the Chinese market, through the performance by a big margin decline Avon tried to rebirth, but the first step in the rebirth of the not overweight aging product line, choosing instead to go ahead of the rest of the marketing channel. Recently, AVON in Shanghai Film Museum held a 2016 dealer conference, with the presence of more than 300 dealers to share the image of the franchise store upgrade and experiential marketing as the main axis of the reform program.
According to the plan, this year, AVON will be the site upgrade in the country preferred 50 stores, shops and to enhance the brand image. New Avon franchise stores image will hit romantic greenhouse "design concept, shops will be divided into for different regions of personal care and daily skin care, make-up, designed for customer experience products exclusive experience zone will debut in the Avon store. In addition, AVON will also select the country's 20 stores in the implementation of the location of the central region's flagship store plans to build local AVON brand benchmark.
According to the plan selection criteria for the upgrade of the franchise stores, Avon responsible person in an interview with the Beijing Daily reporter said Avon will choose at present on the market operating in good condition, proper location of the shop store to upgrade the site. Upgrade plans in the store and the flagship store will be the two or three line of the provincial capital city as the target area.
It is worth mentioning that, with the escalation of the franchise stores, AVON's target consumer groups have changed. "For any brand, the young consumer is very important to grasp. To create a group of favorite shops atmosphere, and follow-up product development and transformation, is the next step in the development of AVON's development in china."
Change to survive
"Chinese consumers have been questioned for many years," why do not see AVON's products everywhere "? This is AVON's biggest problem in China. Although our products to maintain a high quality and cost-effective, but not with consumers, especially young consumers to establish a close contact." AVON relevant responsible person in an interview with the Beijing Business Daily reporter pointed out that the next step in where consumers, AVON is where.
In the industry view, AVON is the first choice of shop image transformation rather than the purpose of product line innovation is to establish a AVON has been missing in the past, the brand image. "In the past few years, even though I have been to the internationalization of the brand itself, but in the eyes of consumers, Avon is the image of the street door smallholder Avon store. Dealers all over the country greatly weakened the uneven in quality, the AVON brand concentration."
For Avon, since 2010, this has 130 years of history, the company has experienced four Huanshuai, four transformation in the Chinese market. At the end of last year, Avon announced a 6.05 billion worth of deals with private equity investment firm Cerberus capital management,, Cerberus capital management, will be at the price of $1.7 billion purchase Avon North American business 80.1% stake. Behind the acquisition is the performance of anguish, Avon's new 2015 three of the Quarterly Bulletin shows that, when the quarter results from $92 million net profit over the same period last year turned into a net loss of $6.97 billion, year revenue fell 22% to 16.669 billion. The Asia Pacific region to China market led. AVON has been losing money for three years.
Return to rough
When asked about the Avon will with what kind of brand as its competitors, Avon responsible person position called "international cosmetics brand", such a target in the industry seems to be some "tragic". "The majority of Chinese women for cosmetics know Co., skin care products are limited to the Ya cream and clam oil, etc., dressed, articulate 'Avon lady' is a magic weapon for winning Avon. AVON can not give up the work of the Chinese market for 26 years, but also the brand upgrade can not be done overnight." Daily chemical industry observers Zhao Xianghui believes that on the one hand, AVON's most important product aging problem is still not resolved. On the other hand, would like to open the market for young people, AVON is facing a huge pressure from competitors.
Actually, this month, Avon in the Chinese market were "new living light perception net Che series" new sale, but the majority of consumers said "never heard of". Although Avon said in the next upgrade on store development more cater to the young consumer preferences for the products, but Zhao Xianghui believes that new product development is admittedly important, but more important is how to make consumers aware of these products. "Store upgrades and flagship store building is the first step, the future of online layout, advertising, and other aspects of the investment, AVON also need to work a little harder." Zhao Xianghui said.
At present, AVON still maintained a pattern of direct sales channels and the coexistence of franchise stores, new products for young consumers have not yet appeared. Hundred years Avon want in Hanzhuang everywhere, the rise of domestic brands in the Chinese market to return to the peak is not easy, but Zhao Xianghui believes that Avon in China still have a chance, "how the brand started. Build up sales team, to revive the dealer of the brand relationship of confidence to the Avon can again return to growth. It takes longer than expected, but not impossible ".
Read news hot spots, showing sensitive events, more exclusive analysis, as in the "things" WeChat, scan two-dimensional code free reading.