Now, Avon has some 6,000 Beauty Boutiques that are owned and operated by entrepreneurs, most of whom were the brand's former direct sales representatives. These units account for 80 percent of Avon's sales in China and have given Avon widespread geographic penetration.Flexibility is key. Business models used in Western or other Asian markets cannot be systematically applied in China. Avon started out with its traditional direct-selling strategy and it worked until the Chinese government banned direct selling in 1998 due to concerns over the spread of fraudulent pyramid schemes in other direct-selling business. Avon's answer? Become a traditional retailer.
Now, Avon has some 6,000 Beauty Boutiques that are owned and operated by entrepreneurs, most of whom were the brand's former direct sales representatives. These units account for 80 percent of Avon's sales in China and have given Avon widespread geographic penetration.
"We are the only beauty player with significant presence outside China's urban centers," a spokesman explained. "Through our Beauty Boutiques, Avon products are sold in 74 percent of cities and towns in China."
When writing the business plan, the Marketing Plan section explains how you’re going to get your customers to buy your products and/or services. This is an OVERALL view of the Marketing Plan section of the business plan. I will be explored in depth in future posts. The Marketing Plan separated into four distinct areas and they are:
Since China banned the direct sales model in 1998, Avon had successfully adopted the traditional sales model of boutique and counter stores. Although the direct sales model had worked well for Avon in almost all other markets in the world, the traditional sales model had proved to be very successful in China
Avon had an overall marketing strategy of direct-selling-approaches, but since China banned the direct sales model, the company had to make a change in their marketing strategy in this country....