2015-06-24 14:45

 

Avon direct to retail difficulties only about 15 homes in Beijing

 

[CNDSN6] 24 days (Beijing daily) several twists and turns to rescue the rescue plan has failed to pull AVON out of the abyss. The field of direct marketing in the decline of the nobles tried to expand the retail business, into the field of electronic business, also trying to department store looking for a sense of being, but in the past three years, Avon all efforts are negligible. Beijing Business Daily reporter recently survey found that Beijing AVON store has cut in half, leaving only about 15, while the recruitment of nearly a year of shopping malls shop has not yet entered the mainstream project.
Counter shop no improvement
"Shopping malls open counters, there is no franchise fee, as long as the amount of the monthly order to meet the requirements can be." According to a Avon dealer introduction, from the second half of last year, Avon began to do shop counters and supermarkets leased area stores, and a street paved housing the joining fee will be in the later slowly return compared, Avon store counter not joining in a fee, there are some preferential policies. However, nearly a year in the past, there is no shadow of AVON's mainstream shopping malls.
According to AVON's official website data show that Beijing is only the remaining 15 counties, Shijingshan, Fangshan, Shunyi and other counties a total of 15 stores, all of the stores in the street shop. At the same time, Beijing and the neighboring Hebei Province, the 11 cities a total of 146 stores, most still Deshang shop.
According to the above sources, there is no requirement for the presence of shopping malls, the counter area as long as the three containers can be put down, each container is 1 meters wide, 2 meters high. "If the monthly sales of more than 10000 yuan, the company also can put the container ten thousand or twenty thousand yuan back to the operator."
To street paved housing, for example, Beijing Haidian District Qinghe a Avon franchisee, said do not include rent, need more than 1 00000 yuan investment in equipment, display, goods above. In its view, although not to accept the fee and the return of the container mortgage, but out of a shopping mall is not low cost. Industry insiders, department store cosmetics area is generally located in a layer, as has been to occupy the position of gold, department stores are generally more demanding on the brand's requirements. Department stores and brand with guaranteed koulv mode of cooperation, that is performance, brand famous degree is high, the department store is more willing to accept. "Avon requires a monthly must purchase, parts purchase amount is not the same, to 1 million yuan of the amount of the order, for example, the franchisee to 7 fold takes the goods, product cost 7000 yuan, leaving 3000 yuan certainly not enough to pay the rent and human."
All retail
"Now the company has no direct sales, those who take the goods from the people who sell is not normal, and now all go retail channels." Beijing Shijingshan a Avon franchisee said, the company is now in addition to ordinary street store can also be accept traffic of cosmetic brand shop, or large living area of the store, supermarket rented area stores and shopping malls counters can also, but the latter is not easy to find suitable position. And for the transformation of retail AVON, the store is an important aspect of its remodeling brand image.
In fact, Avon once in shopping malls counters channels breakthrough, according to a person familiar with the Avon direct sales professionals, Avon is the earliest before in Beijing department store opened dozens of counters are by the company straight battalion, unified management, product line also shop in the street than to some high-end, but later the shop slowly transferred to the dealer to do, each dealer has not the same way of doing business, leading to Avon gradually fade out the shopping channel.
Although powerful direct gene, no retail basis, but in order to save the results of the downturn, China Avon or decided to go retail transformation of the road. AVON began to expand retail business in the second half of 2012, including the addition of a new retail channel marketing group and business development group, the introduction of the fifth generation of AVON store image upgrade plan, etc.. However, in 2014 two quarter earnings report, the Chinese district sales plummeted 30%.
Repeated acquisition rumors
AVON although it is a hundred years from the United States, but is no longer a mainstream cosmetics brands. According to Avon's official website around the store address, the downtown area of a second tier cities is difficult to see Avon facade signs, the number of stores distribution in the three or four line city street or township level region. A Avon dealers believe that Avon is currently the location is in the side of the low-end, now almost no advertising, on brand new consumers do not know, which is in a second tier cities to start the reason.
Actually, Avon brand slipped the dilemma is not only in China, U. S. a technology blog website 24 / 7 Wall St once Avon brand for 2013 will disappear, and said "market on Avon itself does not hold confidence. But from the company owned brand and revenue, it is an ideal acquisition targets". Avon peer Coty Inc. Coty has in 2012 to acquire Avon through leveraged trading, offer $23.25 per share, but was Avon rebuffed. In January of this year, Dealreporter said leading private equity fund TPG capital is considered leveraged buyout Avon company, this news caused Avon day shares soared 14.55% and for the trade rumors TPG and Avon refused to respond. 3
(original title: Avon direct to retail difficulties in Beijing with only 15 or so)
Editor: Wan Wan