Direct reporting network in Beijing in May 12th (Beijing business daily) by currency exchange rate fluctuations, beauty and personal care product company AVON is still not out of the loss of the situation. A few days ago, AVON announced first quarter earnings in 2016, the net loss continued to expand to $, total revenue fell 1 billion 300 million to $16%, which is the eighteenth consecutive quarterly decline in AVON's revenue. The industry believes that AVON is powerless to boost China's demand side.

Reported that the Asia Pacific region fell 17% to $, according to a fixed exchange rate of 10% decline in the calculation. By category, AVON perfume, skin care products and color cosmetics plate sales in the first quarter of this year, there were more than 10% decline. Specifically, the skin care products sales fell 22 percent to $367 million, compared to the same period last year of $468 million; fragrance sales from last year's $393.2 million fell 14% to $to 3.365 million; cosmetics sales 15% decline, from 2.927 billion over the same period last year fell to 2.479 billion.

AVON said the loss was mainly from discontinued operations, including $9 million 600 thousand worth of North American operations. In addition, the company is implementing a restructuring plan, designed to provide $three in savings of $in the year, and lay off 1700 people. As part of the plan, the Avon Co has moved its headquarters to the uk. But analysts still questioned whether by virtue of the huge cost of Avon Co direct sales model to reverse the decline. At present, the company needs to support and maintain a sales team of 6 million people.

The industry believes that AVON can rely on layoffs to achieve recovery remains to be seen. With the rapid rise of electronic business platform, overseas purchasing, bonded area trading center, AVON's direct sales model has been a great impact. Although AVON has a wide range of users in China before, but mainly rely on direct selling price benefits to gather young people. Today, more and more diverse types of cosmetics, consumers buy more channels, AVON's advantage is gradually lost.

At present, AVON is in a protracted recovery process. Since 2012, AVON has been on the decline in the performance of the overseas market and layoffs. 3

(original title: AVON: is the implementation of the restructuring plan and lay off 1700 people turn around)

Editor: Xiaoqing

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