Avon Products, Inc. (AVP) shares rose 1.7% after the company recently announced its new growth strategy and long-term financial targets for 2021.
The updated “Open Up Avon” strategy is geared at bringing Avon back on its growth trajectory by focusing on revamping the direct selling business, renovating the brand and boosting e-commerce.
The Avon Products, Inc plan calls to produce total cost-savings of $400 million by expanding manufacturing and distribution, outsourcing efficiencies, restructuring back office functions, reducing certain facilities and managing revenue, interest and tax. Management expects to invest approximately $300 million toward commercial, digital & IT infrastructure projects. The company does not intend to raise the debt position.
The new strategy is expected to focus on enhancing the company’s competitiveness, digitizing the brand and offering trendy products while trying to boost Representative growth, training and retention.
Recently, Avon reported operational and service supply chain updates as well as improvements in forecasting Representative and customer demand which allow for the boosting of service and delivery capabilities.
Avon Products believes that the “Open Up Avon” strategy will revitalize their growth and help attain the long-term goals.
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