Avon 2013 Annual Report Download - page 4

Looking at our category performance, in 2013 we saw modest growth in Fragrance, and
Fashion & Home. We made some progress in Color cosmetics. We continue our work in
Skincare, where we have good potential for growth, particularly given our tremendous
position in anti-aging with many first-to-market technologies.
Looking ahead, in 2014 we are driving toward continued improvement of our  nancial
performance, including additional progress on our sales goals, reducing costs, and improving
operating margins. And, importantly, we are focused on reversing the decline of the U.S.
business, which is critical to the company’s overall performance.
To drive profitable growth, we are focused on three areas:
Strengthening and Leveraging
our Direct Sales Core
Direct Sales is the core of Avon’s business and
strengthening the fundamental processes that support a
healthy direct selling business is a top priority. In 2014,
we are focused on improvements in  eld management
and commercial marketing. Strong  eld management
capabilities will ensure that we are able to effectively
recruit and retain Representatives. Strong commercial
marketing capabilities will ensure that we have the right
product portfolio, pricing strategies, and merchandising
to generate strong consumer demand for our products.
We plan to strengthen our people and processes
signi cantly across both of these crucial areas in each of
our top markets. We will also continue to modernize our
direct selling channel, offering digital tools like virtual
makeover apps and mobile brochures, to make it easier
for Representatives to do business with Avon.
Maximizing our
Geographic Portfolio
Our top 12 markets represented 77.5% of Avon’s
revenue in 2013, and to improve consistency in our
overall performance, it is important that each of our top
markets is on solid footing. In 2014, we are focused on
moving our top markets through stabilization to growth. In
some markets, that means investing to grow. In others,
the focus will be on continuing our stabilization agenda. We have an enviable geographic
footprint with 75% of our business in emerging markets, where we see good growth potential.
However, it’s also important that we have a stable U.S. business to balance our geographic
portfolio. We aim to deliver signi cant improvements in our U.S. business in 2014 by focusing
on the basics: re-energizing our  eld, and building a better consumer and Representative
proposition. We will also be taking bold actions to create a sustainable cost base for the future.
Rosallie
Avon Independent Sales Representative
Philippines
Rosallie has been an independent
Avon Sales Representative in the
Philippines for more than 20 years.
As a young mother, she made the
decision to stay home to raise her
children rather than complete her
studies. She began selling Avon to
earn spending money, and quickly
turned her love of makeup and her
love for family into a successful
career. She says: “I didn’t expect that
by joining Avon my dreams would
come true.”
See Rosallie’s story online at
www.AvonCompany.com/EarningsOpportunity