Avon Products, Inc., and its ability to change with the market

... INTRODUCTION Avon Products, Inc., is one of the world's largest direct sellers of cosmetics and other beauty products. 98% of its revenue comes from the sale of lipsticks, perfumes and powders by the famous "Avon ladies" directly to women. Today, however, that sales model which has been successful since its inception in 1886 is in the midst of its own makeover. Its direct sales business was on the decline in the American market. In an effort to reposition Avon's flagging image, the Avon board of directors in November 1999 appointed Andrea Jung (a Chinese American) as its new CEO. With little experience, she has the daunting task of piloting one of America's toughest consumer turnarounds. In her challenge to reposition the company, she also has to stabilise and motivate 3 million independent sales representatives in 137 countries across the world. Jung's dilemma was: How could Avon develop new sales channel

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