On the surface, Avon's plight is due to channel the chaos caused, in fact, the deep reason is because of
its lack of a clear positioning strategy.
As a 124-year history of direct selling companies Avon in the direct sales model has been used overseas,
has a mature management experience and payment standards, but Avon has
Is the chosen change course, abandon all along insisted on the direction, has become a relatively pure
Japanese enterprise, in terms of channels, or in product design, both
Like most of Procter & Gamble, L'Oreal and other traditional Japanese enterprise. Avon Why change? In
1998, after the Chinese government promulgated the ban on direct sales, direct selling enterprises to
foreign capital required to "
Shops + direct seller "sales model business activities. In order to get the first direct selling license,
Avon reports 11 easy to draft, which will ultimately make it completely changed the original
Some direct sales model, has since started recruiting dealers to open stores, specialty stores selling
products through direct sellers....
For multinational companies, localization is a permanent task and they want to settle down roots in the
Chinese market. Too adhere to the principles, such as Google, completely give up
Fundamental, such as Avon, have stumbled in the localization. The former withdrew from the Chinese
mainland market, while the latter is difficult to survive in the quagmire. There is no doubt the failure
of localization "
Extreme "label: either refused to change by China, or completely change by China. Avon's transformation
seems forced, in fact, intentional, with the Avon
China's defeat in the category of "under pressure of transformation", than it is to give up their core
competitiveness and self-tasted the bitter pill.
Business model itself is not right or wrong, select the retail market in Avon is not a wrong choice to
some extent, at least it is in the Chinese market has more than 6,000
Store. The "end to the king" in context, this is a huge network of the terminal has sufficient mass
destruction. Make a bold assumption: If the Avon, as Watson
The same as selling other brands of products, think of these shops will have much energy.
Why is Avon the past few years has been very tangled, the largest because it wanted to "fish" and "eat"
have both. The power of choice and sometimes devastating, when you choose
The fish, which means bear's paw will be farther and farther away from you. Many people believe that the
total return of direct marketing is its best way out is the direct reason for the survival of a century
the fundamental Avon
, And Amway's success also shows promising direct sales in the Chinese market.
However, after ten years of development, the development of direct selling Avon the best time to have
missed. Avon and distributors of long-term action, a relatively thin product category, and
Price system has long been, its development would adversely affect the direct selling business.
In contrast, I personally optimistic about Avon cosmetics from a manufacturer, retailer completely
transform into the prospect of a terminal to open attitude to accept other brands, it
Like Watson, the same as salsa. Once the transfiguration successful, all the cosmetics company Avon crush
wants to get into the shop. On Avon, this may have significant
Risk, but worth a try.
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