Avon 2010 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2010 Avon annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 114

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

Empowering Women for 125 years
Executing  awlessly
to strengthen
our world-class
beauty brand
is one of our most
critical priorities.
We will also continue to defend our world-famous ANEW anti-aging Skincare brand
with new, fi rst-to-market innovations. These include the launch of ANEW Solar Advance,
which reverses visible sun damage. In addition, in the fourth quarter of 2011 we will
launch a ground-breaking new product 10 years in the making, inspired by genetic
research on longevity.
DIRECT SELLING EXECUTION
Strong Beauty growth is always driven by strong growth in Active Representatives.
Active Representatives grew 4% in 2010 compared to 10% in 2009. Therefore, another
critical priority is to re-energize the fi eld through excellence in direct-selling execution.
As part of this, in 2011 we are shifting some money away from advertising to fi eld
programs that enhance the value proposition for our Representatives across both our
developed and developing markets.
In the U.S., our most developed market, we are investing $20 million in 2011 to improve
Sales Leadership earnings. We are also evaluating signifi cant longer-term changes to our
Sales Leadership model to include more leadership titles and levels, increasing the overall
compensation opportunity. In addition, we have launched new advertising in the U.S. as
well as the U.K. to promote the benefi ts of shopping through the direct-selling channel.
Among our developing markets, Brazil and Russia are our top priorities. While orders
in Brazil increased 30% since 2007 and reached an all-time high in fourth quarter
2010 with 1.4 million orders per selling campaign, these record orders have strained
our legacy systems. We are investing aggressively in infrastructure and technology to
support our rapid growth in this priority market.