Will this American icon survive the competition in the powerful skin care industry?
Avon was founded in 1886 as the California Perfume Company. When the company expanded overseas, the name was later changed to “Avon” after a town in England in 1939 and the company has prospered ever since. But, fast-forward to 2013 and trouble is brewing on the horizon…global analysts on Wall Street have singled out this US firm as one most likely to disappear in 2013 due to its operations abroad and in the US:
- The vice-president had been fired in 2012 due to bribery allegations in China
- Ongoing internal investigations from 2008-on, regarding company violations of the Foreign Corrupts Practices Act
- Back in October, the FDA determined that Avon’s “Anew” product claims contravened FDA guidelines
- By December, Avon announced leaving its S. Korea and Vietnam markets and cutting 1500 jobs
- Avon will be closing 2 US facilities; in Atlanta and Pasadena
Analysts say that Avon is in a venerable position since it hasn’t concentrated on its core business, but rather on other concerns, making 2013 a make or break year for this troubled company.
Resources: Cosmetic Design News