With sales falling, Avon bet on the web

Sales over the internet will be the big bet of the multinational cosmetics Avon this year to reverse the drop in sales that faces the country, its main global market. Earlier this month, the company put up the Avon Store, which sells various products-branded lines following closely strategy adopted in the USA. The idea is to expand the site and make an official release of e-commerce this year. Before, the Avon just need to make sure that the opening of a new front of sales will not arouse the wrath of the brand consultants on porta a porta.
The attempt to seek new sources of revenue comes at a time when the company is losing market in the country. In the third quarter, the company admitted, to publicize his findings, that the performance was "slow" in Brazil. The recipe in the country, which is not revealed, grew 1%, but only because of tax benefits. Sales of the beauty sector-flagship brand--fell 4% between July and September, while household products had 3% reduction. In the same period, its main competitor in the direct sales industry, Brazil's Natura, was discharged from 5% in net revenues.
All the major cosmetic companies know that the beauty segment is strong in sales over the web, but struggle to avoid the cannibalization of their other sales channels. O Boticário, present both in retail and in the direct sales, has an e-commerce, but the participation in sales is small.
Natura had for years a "hidden" shop at Submarino.com.br. At the end of 2014, launched nationwide Natura, after two years of testing and a lot of conversation with the direct sales team. Works as an e-commerce any, with the difference that the brand "elects" automatically a consultant to receive Commission from the sale if the customer has no prior relationship with a dealership.
Is this battle to capture the web client without arousing the ire of their dealerships-an army estimated at approximately 1 million partners-that Avon is waging now. According to data from research firm ebit on the e-commerce market, is a worthwhile exercise. The beauty sector concentrated in mid-2014, 16% of applications of the internet. Is the second largest segment, behind only sets and accessories (18 percent).
Moreover, even at a bad time for retail--which grew 2.6% in 2014, according to a projection of the National Confederation of Commerce (CNC)-web sales were discharged from 24% to r $ 35.8 billion, according to the eBit.