Avon pledges to remain on worth goal regardless of price pressures

The boss of world magnificence big Avon has pledged to not hit prospects with steep worth hikes, regardless of hovering world prices and efforts to deal with the UK trucker disaster.

Angela Cretu, world managing director of Avon Worldwide, stated price pressures have been rising around the globe and warned they weren’t anticipated to ease for a while.

However it’s dedicated to conserving costs honest for its prospects and a military of 5 million representatives, with costs rising according to inflation regardless of hovering commodity costs.

Now we have made a dedication to not enhance costs, however to maintain a good worth for all our merchandise, to not cross on as a lot as potential and to mitigate

Angela Cretu, Managing Director of Avon Worldwide

She informed the PA information company the group was nicely ready for Christmas because of advance purchases by its representatives, whereas within the UK the group took steps to keep away from the scarcity of truck drivers.

Along with its logistics companions, Avon moved in early summer season to extend the compensation of truck drivers and safe long-term contracts.

The transfer helped protect the group from the availability chain issues that cripple many different industries, leaving grocery store cabinets more and more naked and now resulting in gasoline shortages in lots of elements of the UK.

However that is on prime of the rising prices seen around the globe for uncooked supplies and freight as a result of pandemic disruption and the sudden surge in demand as economies reopen.

Ms Cretu stated the group would search to keep away from passing on further prices the place potential, by driving efficiencies throughout the bigger Natura & Co group, which additionally contains The Physique Store and the skincare model. high-end Aesop pores and skin.

“I need to not put this world turmoil on the shoulders of shoppers,” she stated.

“We’re in a position to synergize purchases and exploit the ecosystem of companions and assure the safety of ultimate costs.

“We made a dedication to not enhance costs, however to take care of honest worth for all of our merchandise, to not cross on as a lot as potential and to mitigate.”

Avon chief government took early motion to keep away from lorry driver scarcity within the UK (Avon / PA)

Because the takeover of Avon by Brazilian magnificence group Natura was finalized final January, the group has been built-in into a bigger firm with greater than 6.3 million consultants and representatives, with mixed revenues of over € 8.9 billion (£ 7.7 billion) and operations in 100 of the international locations.

Ms Cretu stated the corporate has been in a position to share manufacturing sources with sister model The Physique Store, in addition to uncooked supplies and sourcing throughout the bigger group to cut back prices.

However price pressures will persist for the foreseeable future, she warned.

“It will rebalance itself, however I do not see that taking place within the subsequent three months,” she stated.

“It will be robust, however we’re prepared. “

Avon, which is celebrating its one hundred and thirty fifth anniversary this yr, has made a dramatic change on-line because the begin of the pandemic, arming its representatives with instruments to promote via the web, apps and social media.

It nonetheless generates important enterprise quantity via conventional face-to-face gross sales, however on-line gross sales have jumped 132% within the first three months of 2021 and are actually almost 3 times greater than earlier than the pandemic. .

This has helped the group get well strongly from the disaster, with current figures exhibiting that Avon’s whole internet gross sales rose 27% in fixed currencies between April and June.

The group additionally struck a chord with British girls looking for extra versatile work and people made redundant throughout the disaster, with consultant enrollments hovering by 30% within the UK amid the pandemic.

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