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Extended Company Profile:

Avon Products, Inc.

 
Type: Public (NYSE: AVP)
Founded: New York, New York (1886)
Headquarters: New York, New York
Key people: Andrea Jung, Chairman & CEO; Susan Kropf, President & COO
Industry: Personal & Household Products
Products: Cosmetics, perfume, toys, clothing
Revenue: $7.747 billion USD (2004)
Website: http://www.avon.com

Avon Products, Inc. NYSE: AVP is an American cosmetics, perfume and toy seller with markets in over 135 countries across the world and a sales of $7.74 billion worldwide.

Traditionally a direct-selling company, Avon's fastest growing markets today are in China and Russia. Currently, the company is headed up by Andrea Jung, the company's chairman and CEO, who was promoted to the position in 1999. Avon uses both door-to-door sales people ("Avon ladies," primarily) and catalogs to advertise their products, but in some markets (most notably China, who banned all door-to-door selling in the 1990s) Avon products are sold primarily in retail stores.

Some of Avon's product lines include Avon Color, Anew and Solutions, Skin-So-Soft and Naturals, as well as various perfumes, pieces of jewelry and clothing.

Although the company has always been more directed towards female customers, Avon's line of male products continues to expand, and their children's products (such as shampoos and toys) have also proved to be a good source of revenue. Two recent brand diversifications, "mark." (targeted to younger, college-aged women) and "M" (an Avon catalogue for men) have helped the company reach out into markets they traditionally have not serviced in the past. Mark. proved to be extremely successful in reaching a new generation of recruits, primarily ages 18-25, with a monthly "magalog" featuring award-winning products.

In addition to its corporate pursuits, the Avon corporation is also involved in philanthropic causes, primarily centered on women's empowerment and health issues.


History
The company was founded in 1886 by then 28-year-old David H. McConnell as the California Perfume Company (CPC) in New York, New York in a 500 square foot manufacturing and shipping office at 126 Chambers Street. In 1897, McConnell built a small (3000 square foot) laboratory in Suffern, New York; by 1971 the lab would grow into the Avon Suffern Research and Development facility; by 2005 they opened a $100 million dollar 225,000 square foot R&D "glass curtain" facility to house its over 300 Research and Development Scientists on the original site in Suffern, NY. In 1906, the West Coast office in San Francisco was destroyed in the Great Earthquake of that year. Offices open in Luzerne, Pennsylvania and Davenport, Iowa. In 1914 the first non-U.S. office is opened in the Canadian province of Quebec. By 1918, five million units are sold in North America, and by 1928, sales reached $2 million. In October, 1939, the name was changed to Avon Products, Inc. The company was taken public in 1946. By 1954, sales reached $55 million, and the famous "Avon Calling" advertising campaign is introduced. By 1979, sales reach $3 billion, with one million direct sales agents.