terça-feira, 24 de janeiro, 2017

'' To grow, we stopped talking in economic crisis '', says President of Avon

After several difficult years, with constant falls in sales that resulted in the sale of control of the Avon to Cerberus fund-specializing in distressed assets, direct sales company saw its results improve in Brazil, its main global market. In the third quarter of 2016, had high sales of 14% over the same period last year, even in a recession scenario.
Avon Brazil President, David Legher, credits this turn the product launches on the dot and a better relationship with the sales force. But the Colombian Executive also says that there was a change of mentality. In the halls of Avon, from 2015, it was forbidden to speak in crisis. "It took people a bad environment."
Read, then, the main excerpts from the interview:
Avon grew so relevant in the third quarter. What brought this result?
We work strongly from 2015 to regain our focus. And the roots of our business are: relationship with resellers, capacity for innovation and democratization of prices. We strengthen all these points. We started with the repositioning and the motto "beauty that makes sense". Our company came back to the core business, which is the democratisation of beauty.
And what was it like working need to change during the crisis?
The role of leadership was essential. In a meeting that we had, we set a goal: Let''s not talk of crisis within the Avon. And it started a mega positive movement. You may have a crisis out there, but let''s not think about that here. Turned to a mantra of internal campaign to fend off the crisis. It took the people of bad environment. We start the meetings talking about external problems.
And how did it make this change with a new driver demanding results?
Cerberus partners have collaborated. When an investment fund enters, everyone gets nervous, because there''s more aggressive targets. So far, they have shown that they are long-term investors. Rode a very experienced team to help the company deliver the numbers. At the corporate level, expanded the level of discipline. That was the big change that the Cerberus brought to the Avon.
And, at least for now, the Cerberus didn''t even in global leadership (Sheri McCoy) nor the brazilian.
Generally, a trust fund return key parts. Until now, (the Cerberus) has been respectful in relation to company leaders. And this brings up a very important confidence.
Why the change in numbers only began to appear in the third quarter of 2016?
We came good in the fourth quarter of last year. Maybe not the absolute numbers, but the gain in share (market share) in several categories, what is relevant in our sector (high, in fragrances, 1.1 percentage point was in the third quarter, according to Nielsen). We have very professional competitors in Brazil. And earn participation shows that we''re able to compete on innovation, relationship and value proposition.
In terms of product development, what''s changed?
One of the main issues was to reconnect the Avon with the Brazilian consumer. The new notice, with the rescue of Brazilian women, helped to reconnect the brand with the customer. Secondly, we have brought innovation. In the case of a product, the lipstick ultramate, sell more than 8 million units in two years, in the release campaign. A global record.
And the issue of price, had to be adjusted because of the crisis?
For our global scope, we can get products at prices quite good. But this year we we increased prices of important way in Brazil, perhaps even more aggressive than our competitors.
What changes you''ve noticed, in recent years, the behavior of the client?
In the last ten years, the Brazilian consumer has matured a lot and began to demand better quality products. Despite the crisis, the client is not willing to go back in this regard. Therefore, people have decreased the frequency and are buying fewer items.
The crisis can help capture resellers, because of rising unemployment?
The crisis help and hinder on the uptake. Help because there are more people looking for opportunities. And a hindrance because consumption is more contained. So, you can have more consultants, but with lower productivity.
What is the setting for 2017, in your opinion?
We say "crisis here, but we have clarity that we are in a complex macroeconomic and political scenario. The most important thing at the moment is take back consumer confidence. In the short term, it''s not going to change much; 2017 will be difficult, with an improvement from the end of the year.
What can be done, in your opinion, to improve business environment in the country?
I think Governments should intervene less in the business environment and to worry more in creating conditions for the success of the companies. There''s no need to give benefit to one sector or another, but to make structural reforms to the economy moving forward.
A tarde - 23/01/2017
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