API Bankruptcy Process and the Future of the Avon Brand
Bankruptcy process is to help maintain the brand on the market. API is a subsidiary of Natura&Co, which bought Avon’s non-American business four years ago. After the bankruptcy process was completed Nature & What plans to buy Avon shares outside the United States for $125 million. This gives the Avon brand, along with its salespeople, consultants and network of customers (including Polish ones), a chance to survive despite API’s bankruptcy. Avon’s API-related companies – the British “Guardian” stressed, reporting on the case – directly employ about 5,000 people and millions of sales agents around the world.
In a statement sent to PAP, the head of the integrated communications department Avon Cosmetics PolandEwa Grzech pointed out that Avon’s operations outside the United States are not covered by the investigation“This means that nothing changes for our clients, colleagues, consultants or other stakeholders in Poland. At Avon, everything remains the same – we continue to implement our strategic initiatives while providing customers around the world with the same cosmetics offering they know and love,” said the representative of Avon Cosmetics Poland.
Ensuring Avon’s Business Continuity Outside the U.S.
She also stressed that product safety is a priority for Avon Cosmetics Poland and that is why the company “uses only cosmetic talcum powderwhich passed the confirmatory tests no asbestos“. “Avon strictly adheres to all regulations regarding ingredients and safety, and each of our cosmetics is subjected to rigorous testing, so it can be used without worries,” she said.
Causes and effects of Avon’s collapse according to Forbes
American Forbescommenting on the bankruptcy petition filed in mid-month, noted that although legal problems are the direct cause of Avon’s collapse, the real reason is loss of company innovationwhich, after all, emerged as an innovator: since the last decades of the 19th century, Avon, instead of relying on traditional retail channels, sold its products through a network of independent representatives, thus creating a host of brand ambassadors deeply connected to the company. However, when technological possibilities began to allow convenient online salesAvon was unable to leverage old values in new circumstances.
Avon’s downfall is “a story of wasted opportunities, strategic missteps and a failure to evolve in the face of a rapidly changing market landscape,” Forbes said. The company had the potential to lead the trends that ultimately destroyed it.
Avon and the potential of an untapped network of micro-influencers
“Long before the rise of social media influencers and direct-to-consumer brands, Avon had a vast network of micro-influencers—its representatives—who had deep, personal relationships with customers. If Avon had recognized the value of that network and leveraged it in the digital age, it could have become a social selling powerhouse,” Forbes said.
Avon Product Safety in the Context of Bankruptcy
Despite the ongoing lawsuits, the company emphasizes that it uses only cosmetic talc in its products, which has passed tests confirming the absence of asbestos contamination. (PAP)
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