Avon continues pulling prices up

Avon accelerates the pace of product launches in the second half, along with greater investments in advertising and technology to improve digital tools of resellers. Prices should continue rising.
The Executive Director of marketing for Avon, Ricardo sponsorship, says that the company is developing products with more technology and wants to "raise the cost-benefit for the consumer."
Among the releases for this quarter, a new line of moisturizing lotion 400 ml will be sold at $ 20-nearly 40% above the price practiced by Avon in the category. The products have been made to the Brazilian market. The Avon makeup line, the company's flagship, was relaunched in July, with 8% more expensive, on average. And, in the first half, the company reissued the Luiza Brunet, perfume 30% more expensive.
Yesterday, the CEO of Avon, Sheri McCoy, said that pricing is one of the company's challenges. "It's an area in which no such competence as we would like". She said the breakthrough in the category of fragrances, but ponders: "But we really need to figure out how to move consumers up in jail and have the appropriate price".
Avon's net revenue in Brazil fell 1% in the second quarter, as compared to the same period last year, impacted by foreign exchange effect. In constant dollar, revenue rose by 4%. The base of consultants increased, but the average value of each sales fell. Sales of beauty products were stable. What pulled the recipe was the fashion segment, with high of 19%. The portfolio includes jewelry, lingerie and shoes, was carefully in 20%, eliminating products with low sales.
The Brazil is the largest market of Avon, with 1.5 million of resellers. Natura, its biggest competitor, also announced last week that their investments will be concentrated and releases in the second half. Natura's revenue rose 1.1% in Brazil in the second quarter.
In the world, Avon's revenue fell 2% in the second quarter, to $ 2.51 billion. Net income dropped 48% to $ 32 million. The Latin America and the region that includes Europe, the Middle East and Asia showed a slight growth, while North America and Asia Pacific registered retreat in the recipe. The United States, one of the largest markets of the company, continue to fall.