Mr. David McConnell founded the “California Perfume Company” in 1886, New York. Actually Mr. David was a salesman. He wanted to sell his books, for this purpose he persuaded women to buy his books with an incentive of a perfume bottle. As a result his perfume bottles got popularity instead of his books. So he left his books business and started the perfume selling business that ultimately turned into the world’s largest skin care and beauty products business.
In 1939, the company was renamed as “Avon”. The company’s first product name was “Little Dot Perfume” that was manufactured by McConnell’s own perfume formulas. In start, company decided to target the rural areas, only in order to get the benefit of large social networks to which they were connected to. The company’s first overseas office was established in 1914 in Montreal, city of Canada. Today Avon has spread its network with wide range of skin care products, cosmetics, jewelery and fragrances for women, men and children all over the world by using the multilevel marketing approach.
Avon is a listed enterprise and offered its first Avon stock for public sale in 1946.Avon introduced its “Ding Dong, Avon Calling “advertising campaign that raised Avon’s sales at $55 million in 1954.During the 1970, Avon started to contribute in charitable purposes like for the protection of environment and to keep it healthy Avon stopped to use the chlorofluorocarbons (CFCs) in its aerosol products. Basically CFCs is harmful for the ozone layer that protects the earth from the ultraviolet rays of the Sun, it also sponsored a tennis championship and two marathons for women.
In 1990, Avon was the first cosmetic manufacturing company that stopped the animal testing and persuaded others. For women’s health Avon also raised fund of $10 million in 1992 that was later on used in the research of Breast Cancer and domestic violence. The Company also launched its first website in 1997 and raised its annual sale growth up to $5 billion. In 1999, Andrea Jung became the CEO of the company and was the first female in this company who came on this designation. Andrea Jung started to renovate the Avon’s productline, marketing tools; packaging etc with the motive of huge sale growth through cent percent customer satisfaction and that’s why she reconstructed its website and linked it to the websites of individual sale representatives so that the access to end-user could be easy.
As the L’Oreal, Mary Kay and Amway are the main rivals of Avon. When L’Oreal had made a takeover offer for the Avon last year, it raised the Avon 4.2% in New York trading. Hence Avon rose from $1.38 to $34.54 in New York stock exchange last year. Last year Avon bought the jewelry company “Silpada Designs Inc” with the motive of expanding its product line.
Now-a-days Avon Inc is one of the leading MLM’s Companies that has more than $5 million sales representatives all over the world. Avon’s joining cost is $10.Avon Inc gives its representatives the incentive packages against their hard work and motivate them to do more in future like representatives who sell more than $10100 value of product in a year will be a part of President Club, similarly who will sell more than $20200 product worth in a year will be the member of Honor Society.