2016-03-03 14:22
Barron oath let a golden rooster mother for AVON regeneration
[straight news network Beijing on March 3 news] (Avon) on March 2, Avon announced, Cerberus Capital Management Co., Ltd. (a) has agreed to put $435 million in the company, to subscribe for the company convertible perpetual preferred shares. At the same time, AVON's North American business split into a Private Companies, owned by Cerberus and is responsible for the management of the rights and interests of 80%. To this end, Cerberus will invest $170 million (HK $1 billion 326 million).
AVON chief executive SheriMcCoy said the partnership arrangement allows the group finance with greater flexibility, but also increase certain capital. Through the 2 transaction, the company's cash will reach to $1 billion.
Founded in 1992, Bolong is one of the largest private equity firms, by financier Steve Feinberg created devoted to the acquisition of quick collapse of the company to be reformed residual, sold and used their management skills and contacts the company back on track after. Bolong by established his reputation to blessing company value underestimated conditions, and assist in loans to revive their profession work, also use management technology to improve the existing management and Steve Feinberg that many quick collapse of the company actually only one or two little mistake, as long as you can fix them can become a golden goose. Even in the long-term business without having to sell.
Objectively speaking, AVON's $about 2000000000 debt is not a small number, even if the capital in the tens of billions of dollars in barron. The one or two mistake is not a small place, but from the product to the management of almost all. But Barron must fancy AVON what brand or model? So the repair fee will stop throwing money at high enthusiasm. As for the repair where, where is the key problem.
Of course, not only rich in Barron advantage. His bad is that he can always be people of confidence into the acquisition of goods to regain confidence. He now believes that AVON is undervalued, he has confidence in AVON, he can mend AVON. He hope you like the idea with him:
These will be in the future of AVON's market capitalization and reflected.
Let us see, by Barron phase is a chicken mother how.
[reading] Association of AVON as of September 2015 debt has exceeded 2 billion U.S. dollars of brand aging hard to win market
According to the insiders, before AVON in Chinese circle have a wide range of users, mainly by selling price welfare of young people gathered. Now, because of the rapid development of the Internet industry and the logistics industry is becoming more and more diverse types of cosmetics, consumers choose to buy more and more channels, the advantage of AVON lost.
And then, AVON has been swinging between the store mode and direct mode, accelerating its market position.
Industry experts pointed out that the two models are very different, distribution, discount and other aspects there is a big difference, AVON has been hovering between two modes, the great impact." Due to the monopoly in the field is the Avon to expand channels of the short board, space in the market to gradually narrow the background, turning the performance in terms of the monopoly in the form is undoubtedly a waste of investment cost, consumers are not buying it. But in 2008 the "bribery" in the future, AVON China carried out drastic personnel changes. High instability led directly to AVON in the Chinese sales pattern and style can not be fixed.
AVON's direct sales model the inventor of this identity in the brilliant but bring to AVON, has limited its development. Because AVON is not in the main retail business model around the world. Therefore Avon in to the retail process, basic is zero experience, and also to be in the face of Procter & Gamble, L'Oreal, Unilever and other cosmetic giants' encirclement and suppression ', failure of transformation can be said to be expected.
At the same time, it seems people in the market, even when AVON Z brilliant, there is still a problem, that is in the AVON system, there are few series of impressive brand or product. As a result, consumers are easy to forget this brand. In addition, AVON brand aging, is one of the reasons it is difficult to win back market. In addition to the new product launch of AVON occasionally, almost did not take any measures in the brand maintenance and update.
Industry analysts believe that the market did not have time to AVON a fumble, a transformation, if AVON wants to survive, must be in our products.
Avon has no retreat, or gradually disappear in the fierce competition in the market, or backs against the wall, increase the intensity of the deep tier cities, perhaps to live there hope. 3
(original title: Barron oath let AVON for the regeneration of a golden rooster mother)
Editor: dust wind
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