In one of her first interviews since taking the helm at Avon, CEO Sheri McCoy spoke with Forbes about the company’s current challenges and the strategies that will guide the world’s fifth-largest beauty company forward. The last five years have seen Avon stock fall more than 50 percent, along with a decrease in net income. McCoy discusses the necessity of establishing a clear vision for the company’s future and maintaining a disciplined focus on big-picture goals.
McCoy’s disciplined approach characterizes the initial steps in Avon’s turnaround plan, namely cutting 1,500 jobs, pulling out of Vietnam and South Korea, and reducing the company’s spending to save $400 million by the end of 2015. These cost-saving measures aim at refining the core business and products to better address the external question of what is important for Avon’s representatives. The company is also implementing a strategy to invest additional resources in the company’s most dynamic markets.
In the same spirit of efficiency, McCoy is working to carry the company’s business model of social connection into the digital age. Avon will invest $200 million to update its information systems and cultivate digital and social media. With an increased online presence and contemporary direct selling model, McCoy aims to restore the over 100-year-old brand to its iconic status in the global beauty market.
Read the entire Forbes Q & A with McCoy here.