Direct sales giant Avon has repositioned its mass-market brand Avon Colour with new name Avon True amidst big turnaround plans for the company.
As part of the new plans the brand will have new packaging and new products.
Speaking at the Barclays Global Consumer Staples Conference, Barclays Analyst Lauren Lieberman presented an analyst note and said, “The company gave several examples of new product/brand launches that are set [for the fourth quarter] into [the first quarter] primarily in color, which are aimed for Avon to capture a bigger share of mass beauty.
“Avon is also expanding its Mark brand to Latin America. Mark is targeted toward 25-34 year old ‘color enthusiasts’ and to date has played only a limited role in the developed world. In skin, Avon is in the midst of launching Anew Ultimate Supreme Dual Elixir, a serum and oil antiaging product with claims that it has five [times] more moisture than the department store brand.”
More details of how the company plans to turnaround have emerged, with other moves including increasing its social media presence – which has grown by 16 percent in the last six months. Cost cutting efforts were paying off with the North American business officially separated in a spin off to Cerberus Capital Management, meanwhile nine of the 10 markets witnessed growth in the second quarter and that the company was on track to cut $70 million in cost saving this year.
Strategic alternatives are also still being considered for China.
Lieberman said, “From our perspective, this was the most confidently we’ve ever heard management discuss its business and growth potential.”