Avon Products Inc., the second largest direct seller in the world, has announced that it will exit the Australia and New Zealand markets by the end of this year.
The London-based company provided Direct Selling News with the following statement: “As part of the strategy to return Avon to long-term sustainable profitable growth, the company is focusing on markets with the greatest potential for future growth to support its vision of becoming the world’s leading social beauty company. In line with this, after a thorough deliberation on performance, the direct selling conditions in the market, and potential for growth, the company considered all options for the business and is announcing our decision to exit the Australia and New Zealand markets by the end of 2018. There are currently no plans for any further business closures.”
“This has been a difficult decision to make and I would like to take this opportunity to thank every Associate and Representative in Australia and New Zealand for their hard work and dedication to Avon,” said Avon Global President Miguel Fernandez. “Our commitment is to support our Associates and Representatives in the region through this transition period, with sensitivity and respect, guided by our Avon values.”
Fernandez added, “There is much work to be done ahead. But working together, we will be able to work through the challenges and move forward toward steady recovery and growth.”
According to Australia’s Sydney Morning Herald, the closure will leave 220 employees in both countries without jobs. In Australia, where Avon has been operating since 1963, more than 21,000 Representatives will be affected.
Avon was founded by David H. McConnell in New York in 1886. Last week, the company reported sales of $5.7 billion for 2017, which was relatively unchanged from 2016.