Why Is New Avon LLC Foraying Into The Health And Wellness Segment?

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AVP: Avon Products logo
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Avon Products

With the creation of a new role of President of Health and Wellness in the U.S., Avon in North America marked the start of its journey in the health and wellness sector. Health and Wellness is considered to be the largest selling and the most rapidly growing category in the direct selling channel accounting for almost 34% of the total sales. The segment grew by 16.3% to around $12 billion in 2015.

These initiatives are coming from New Avon LLC, the private company encompassing operations in North America. Last year, Avon sold around 80% of its North American business to Cerberus Capital. Anjana Srivastava, who will be heading the Health and Wellness segment, will be responsible for the development of the team and catering to the customer needs in this market. Prior to Avon, Ms. Srivastava held leadership positions in several global direct selling companies.

New Avon LLC (“Avon”) is the leading social selling beauty company in North America. The company generated over $1 billion in revenues during 2015, and has nearly 400,000 independent sales Representatives in the United States, Puerto Rico and Canada. Avon’s product portfolio includes award-winning skincare, color cosmetics, fragrance and personal care products, featuring iconic brands such as Anew, Avon Color, Mark, and Skin So Soft, as well as fashion and accessories. Avon’s new segment can grow through cross-selling among the existing customers. It might also bring in a new set of customers to Avon and hence help the company grow faster.

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Have more questions about Avon Products (NYSE:AVP)? See the links below:

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Avon Products

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