{"id":9090,"date":"2020-02-26T15:46:52","date_gmt":"2020-02-26T14:46:52","guid":{"rendered":"https:\/\/avs-advisors.com\/?p=9090"},"modified":"2021-09-28T17:52:59","modified_gmt":"2021-09-28T15:52:59","slug":"the-industrys-pace-of-change-has-never-been-so-intense","status":"publish","type":"post","link":"https:\/\/avs-advisors.com\/fr\/the-industrys-pace-of-change-has-never-been-so-intense\/","title":{"rendered":"The industry\u2019s pace of change has never been so intense"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-8vgb1o-6917258f33da21f07e60183664e54de0\">\n.flex_column.av-8vgb1o-6917258f33da21f07e60183664e54de0{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-8vgb1o-6917258f33da21f07e60183664e54de0 av_one_fifth  avia-builder-el-0  el_before_av_three_fifth  avia-builder-el-first  first flex_column_div av-zero-column-padding '     ><style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-k61yn6kg-e2d4d9c2d069d67d2e7d27a89aa24fb7\">\n.avia-image-container.av-k61yn6kg-e2d4d9c2d069d67d2e7d27a89aa24fb7 img.avia_image{\nbox-shadow:none;\n}\n.avia-image-container.av-k61yn6kg-e2d4d9c2d069d67d2e7d27a89aa24fb7 .av-image-caption-overlay-center{\ncolor:#ffffff;\n}\n<\/style>\n<div  class='avia-image-container av-k61yn6kg-e2d4d9c2d069d67d2e7d27a89aa24fb7 av-styling-circle avia-align-center  avia-builder-el-1  avia-builder-el-no-sibling '   itemprop=\"image\" itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/ImageObject\" ><div class=\"avia-image-container-inner\"><div class=\"avia-image-overlay-wrap\"><img decoding=\"async\" class='wp-image-7091 avia-img-lazy-loading-not-7091 avia_image ' src=\"https:\/\/avs-advisors.com\/wp-content\/uploads\/2018\/11\/TTA-02-2018-Jan-Zijderveld150x150.jpg\" alt='' title=''  height=\"150\" width=\"150\"  itemprop=\"thumbnailUrl\" srcset=\"https:\/\/avs-advisors.com\/wp-content\/uploads\/2018\/11\/TTA-02-2018-Jan-Zijderveld150x150.jpg 150w, https:\/\/avs-advisors.com\/wp-content\/uploads\/2018\/11\/TTA-02-2018-Jan-Zijderveld150x150-80x80.jpg 80w, https:\/\/avs-advisors.com\/wp-content\/uploads\/2018\/11\/TTA-02-2018-Jan-Zijderveld150x150-36x36.jpg 36w, https:\/\/avs-advisors.com\/wp-content\/uploads\/2018\/11\/TTA-02-2018-Jan-Zijderveld150x150-120x120.jpg 120w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/><\/div><\/div><\/div><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-7ldcto-9f1016c7c66bb4ad71a854dcaae0ea63\">\n.flex_column.av-7ldcto-9f1016c7c66bb4ad71a854dcaae0ea63{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-7ldcto-9f1016c7c66bb4ad71a854dcaae0ea63 av_three_fifth  avia-builder-el-2  el_after_av_one_fifth  el_before_av_one_fifth  flex_column_div av-zero-column-padding '     ><p>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_heading-3175a64754859d6d160b98ea8b1aeb2c\">\n#top .av-special-heading.av-av_heading-3175a64754859d6d160b98ea8b1aeb2c{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-av_heading-3175a64754859d6d160b98ea8b1aeb2c .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-av_heading-3175a64754859d6d160b98ea8b1aeb2c .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-av_heading-3175a64754859d6d160b98ea8b1aeb2c av-special-heading-h1 blockquote modern-quote  avia-builder-el-3  el_before_av_heading  avia-builder-el-first '><h1 class='av-special-heading-tag'  itemprop=\"headline\"  >The industry\u2019s pace of change has never been so intense<\/h1><div class='av-subheading av-subheading_below'><p>An interview with Jan Zijderveld, CEO of Avon Products Inc.<\/p>\n<\/div><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_heading-ff53cd190e2cac8420d6685b520b8e80\">\n#top .av-special-heading.av-av_heading-ff53cd190e2cac8420d6685b520b8e80{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-av_heading-ff53cd190e2cac8420d6685b520b8e80 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-av_heading-ff53cd190e2cac8420d6685b520b8e80 .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-av_heading-ff53cd190e2cac8420d6685b520b8e80 av-special-heading-h5 blockquote modern-quote  avia-builder-el-4  el_after_av_heading  el_before_av_font_icon '><h5 class='av-special-heading-tag'  itemprop=\"headline\"  >by Andreas von Specht<\/h5><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-k61yt6pc-4b3d0b31c33d1ba5940ad0ea1382b06a\">\n.av_font_icon.av-k61yt6pc-4b3d0b31c33d1ba5940ad0ea1382b06a .av-icon-char{\nfont-size:40px;\nline-height:40px;\n}\n<\/style>\n<span  class='av_font_icon av-k61yt6pc-4b3d0b31c33d1ba5940ad0ea1382b06a avia_animate_when_visible av-icon-style- avia-icon-pos-left av-no-color avia-icon-animate'><span class='av-icon-char' aria-hidden='true' data-av_icon='\ue819' data-av_iconfont='entypo-fontello' ><\/span><\/span><br \/>\n<section  class='av_textblock_section av-k61ywyoh-aa80164a0bbcfe1a68ac25d8daf20471'  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p><em>With net sales of US$5.7 billion, Avon is the second-largest direct selling company in the world. Avon offers products in the beauty, household and personal care categories through its network of nearly 6m Avon Representatives. Direct selling companies such as Avon are facing significant challenges in the digital age; not only are consumers increasingly shifting their purchases online, but technology has enabled brands and retailers to offer more personalized services, a key competitive advantage previously owned by direct sellers. How is Avon going to react? TTA talked to CEO Jan Zijderveld about his mission of change.<\/em><\/p>\n<p><strong>What is special about Avon\u2019s business model and why do you hold on to the business model of direct selling?<\/strong><\/p>\n<p>Unique to Avon is our woman-to-woman network of Representatives (\u201creps\u201d), our belief in democratising beauty \u2013 making the latest trends and innovations accessible to all through value products \u2013 combined with our capacity to educate, engage and mobilize. I believe that the power of people selling to people is phenomenal. Our brands are known and appreciated worldwide \u2013 with virtually 100% brand recognition in major markets. From our earliest days we have been a business built on relationships of trust and care. Our network of beauty entrepreneurs gives us a direct and genuine relationship with consumers. So the Avon experience really is personal. Our six million reps know and love the products they sell because they use them every day and have a shared passion for innovative on-trend beauty. I have met hundreds of them and they believe in Avon. In a world where trust in companies is becoming a scarce commodity, our Rep\u2019s relationship with consumers gives us pricing power, communications power and gives our customers a richly personal brand experience.<\/p>\n<p><strong>What challenges is a direct seller like Avon facing and what do you plan to do about it?<\/strong><\/p>\n<p>The industry\u2019s pace of change has never been so intense. The digital world is faster and networks are wider. But flexing with the times must be part of Avon\u2019s DNA. We need to modernize Avon and we need to be bolder and more dramatic \u2013 disrupting our ways of working. We need to open up, and start challenging and changing how we work and what we work on. That means rejuvenating the Avon brand, making our products and category portfolio work harder for us, and unlocking the power of digital for our beauty entrepreneurs across the world. Our geographic footprint positions us for growth: the majority of our business is in growing emerging and developing economies. Our main category \u2013 beauty \u2013 is high margin, high-involvement. And crucially, we are digitizing our business to make it easier for both beauty entrepreneurs and customers to do business with us. Borrowing a page from the playbook of fast-fashion brands, we are transforming Avon to become a high touch, high tech, high impact and fast beauty brand. We\u2019re taking a fresh look at everything, with the sense of urgency that you would expect.<\/p>\n<p><strong>How are you trying to maintain Avon\u2019s business model in the age of digitisation?<\/strong><\/p>\n<p>Digitisation is at the heart of our strategy. Social selling is ripe for technology, digital and analytics. We are working intensely to build the right tools to support our 6 million strong network of reps to help them provide a personal service to their customers that is underpinned by strong digital capability. Having no intermediaries between the brand and the consumer and our beauty entrepreneurs is for me one of the biggest opportunities of the Avon business.<\/p>\n<p><strong>What are the individual steps that are being implemented in order to become a \u201cdigitized Avon\u201d?<\/strong><\/p>\n<p>The term \u2018digital\u2019 can be open to misinterpretation and confusion.\u00a0 For us, it means the digitisation of the whole business \u2013 from the front-end, backwards throughout the value chain. Avon is undergoing a period of significant change and customer-friendly digital interfaces, supported by an efficient technology infrastructure and rich data analytics, are a key strategic driver of our future progress. We have already launched a fully digitised, mobile-enabled e-interactive brochure, allowing our Reps to connect quickly and effectively with their customers by creating an e-enabled personalised shopping cart that can be shared via WhatsApp and Facebook Messenger \u2013 sending the latest trends and products directly to their mobile devices. This includes in-built and real-time analytics for future enhancement and customisation, making it easier to track best-selling products and individual preferences etc. On launch, it received more than 500,000 visitors, with positive feedback from across Avon\u2019s network of beauty entrepreneurs. Plans for My Avon Store are also underway. This will allow our e-reps to host their own store and run a fully digital business. Finally, we are very excited about the overwhelmingly positive response to the pilot of our new \u2018Personalised Beauty App\u2019. This is a revolutionary digital tool that will empower Reps to deliver a whole new level of personalised service to customers \u2013 quickly, conveniently and with confidence. Early results suggest that this technology provides a benefit that really resonates. We\u2019re solving a problem and that\u2019s powerful.<\/p>\n<p><strong>You are talking about a major shift of the Avon business model. Did you need to exchange your top management team to implement this soft digital revolution?\u00a0<\/strong><\/p>\n<p>We have continued to inject new talent and capabilities into the business. This includes the newly-created role of SVP, Chief Digital &amp; Information Technology Officer. Benedetto Conversano is an outstanding talent and we will benefit from his consumer-focused digital, technological and operational skillset. He will be responsible for developing a new digital strategy as a foundational element of Avon\u2019s future plans, while building, developing and standardizing technology solutions and delivery across the global organization. We are committed to radically rethinking how we exploit digitalisation as a game changer \u2013 evolving to become a fast-beauty brand for the omnichannel world. So our new Global Sales Organisation is also key, made up of leading experts to be deployed directly to markets for immediate impact. Focusing on enhancing the Reps experience and service model evolution, Reps segmentation, field sales excellence, commercial optimisation and entry strategies for new territories, it will use data driven insights to tailor the training and incentives that fuel Avon\u2019s beauty entrepreneurs. We know that improving earnings potential, expanding learning opportunities and scaling best practice are fundamental to achieving our targets and sharpening Avon\u2019s competitiveness. We are building the right structure to institute a rigorous performance culture, one where we dramatically step up accountability for end-to-end execution and results.<\/p>\n<p><strong>Did you create something like a \u2018digital advisory board\u2019 of external business leaders and\/or experts with deep experience in digital organization and transformation \u2013 or are you managing the transformation process on your own?\u00a0<\/strong><\/p>\n<p>As part of our digitalisation ambitions, we are building a new \u201cdigital board\u201d comprised of digital, commercial and other business leaders. Benedetto\u2018s role includes being Chair of Avon\u2019s new Digital Board, which is essentially accountable for Avon\u2019s digital transformation. The Digital Board will work closely with Avon\u2019s Board of Directors and Executive Committee, in order to boost growth and keep digital at the forefront throughout the business.<\/p>\n<p><strong>Digital is transforming everything from consumer behaviour to employee engagement. What is the cultural change at Avon that you expect to see in the course of your transformation?<\/strong><\/p>\n<p>Avon is a very strong brand with a sense of warmth and likability that is really, really powerful. But at times our culture has been too internally focused and siloed. Everything is up for grabs. We\u2019re going to be a simpler, faster, more agile business. And this starts with a different mind-set, one that is open to re-assessing the assets, infrastructure, partnerships and alliances. So the transformation already underway marks a shift away from a cumbersome and quite closed business to a nimble and open company. In other words, we are going to open up this company.<\/p>\n<p><strong>Many traditional companies are having to shift focus from top line to bottom line, further complicating the imperative of investing for the future. Further, they are at a stark disadvantage compared with start-ups, whose investors are willing to forego profit for growth. How do you resolve this conflict of aims?<\/strong><\/p>\n<p>I know the start-up methodology inside out and it is key. Everything is done in 2-week sprints, with clear KPIs and a tight PMO. That is how we are working as we accelerate to become a fast-beauty brand. We are investing in commercial initiatives, digital and IT infrastructure, and we are on track to stabilize our financial results and achieve our goals of low-single digit revenue growth and low double-digit margins by 2021.<\/p>\n<p><strong>Consumers are no longer isolated entities; instead, they move in self-organizing groups. The membership and subscription-driven business models tap into this desire to belong, even at the price of sharing personal data. Do you see this happening at Avon as well?<\/strong><\/p>\n<p>Avon believes that it is hearing the stories of our consumers \u2013 the deeper stories, the ones that go beneath the surface as well as above it, will give us our biggest connections and our biggest breakthroughs. Today\u2019s consumers are stressed, busy, overwhelmed with information, and they are looking for brands to address their unique needs. The beauty consumer of tomorrow doesn\u2019t want to have to tell you how she wants a product to make her feel; she will expect you to already know. She will be buying into brands to facilitate meaningful connections to lifestyles and beliefs. She wants to feel as if her products have been made just for her. Connections and conversations are, and always have been, at the heart of Avon. That direct contact with consumers means rich data, analytics and the personal approach to beauty that enables self-expression and inspires confidence that is grounded in the everyday experience of millions of women.<\/p>\n<p><strong>The rise of millennials is driving significant shifts in consumer expectations. They demand transparency and immediacy, and place little value on brands. How is Avon trying to embrace this segment?<\/strong><\/p>\n<p>In today\u2019s market, authenticity is everything. Which makes it vital for us to innovate and tell our story better. We are proud to be empowering millions of micro entrepreneurs globally, giving them the tools to work in their own way and on their own terms. Avon is much more than a business \u2013 it\u2019s a movement of women. With major sweeping social change afoot, we believe the future is full of possibilities for women, and our beauty entrepreneurs are in turn helping to reinvigorate our core purpose as a business. Interestingly, in the last 12 months, 45% of the women who have joined us are under 30. Those front-line Reps are also vital to the insights that feed breakthrough innovation and we are now delivering the newest trends faster than ever. For us, it\u2019s about democratizing beauty, making it accessible by bringing our customers great products and the latest trends and technology at amazing value. Premium skincare is growing very, very fast so that\u2019s a key focus. Asian beauty, Korean beauty, Japanese beauty are all huge, particularly for the millennial audience. So we are going to really look at those growth segments and go after them. Beauty is becoming increasingly complex but it is interesting that the sometimes-fickle millennial market can actually be very loyal brand consumers, especially where a brand is grounded in strong values.<\/p>\n<p><strong>You joined Avon from FMCG giant Unilever. What are your personal challenges to succeed in this mission (almost) impossible? Did you need to adjust your own style and modus operandi?<\/strong><\/p>\n<p>After 30 years in Unilever, having lived in seven countries, many different parts of the world, seen many, many different businesses, many different challenges and cultures, I see Avon as a business with a potential which is difficult to overstate. I love a challenge and my modus operandi has always been to do what is worthwhile, not what is easy. Can we get this business back on the front foot and drive it to the next level? Absolutely. That has to start with a deep understanding of the root issues facing this business as well as the key strengths to leverage for the future. Avon needs a fundamental reset, and that will need time, but we\u2019re well on the way.<\/p>\n<p><strong>Jan, thank you for these insights!<\/strong><\/p>\n<\/div><\/section><br \/>\n<div  class='avia-buttonrow-wrap av-k61ze9w6-f76018f3fb98b17a0aff0b6ac95eb808 avia-buttonrow-right  avia-builder-el-7  el_after_av_textblock  avia-builder-el-last '>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_buttonrow_item-c34955ef1ccc827aa69cf05a0f31dfe6\">\n#top #wrap_all .avia-button.av-av_buttonrow_item-c34955ef1ccc827aa69cf05a0f31dfe6{\nmargin-bottom:10px;\nmargin-left:10px;\n}\n<\/style>\n<a href='https:\/\/avs-advisors.com\/fr\/trustedadvisor'  class='avia-button av-av_buttonrow_item-c34955ef1ccc827aa69cf05a0f31dfe6 avia-icon_select-yes-left-icon avia-size-small avia-color-theme-color'  ><span class='avia_button_icon avia_button_icon_left ' aria-hidden='true' data-av_icon='\ue830' data-av_iconfont='entypo-fontello'><\/span><span class='avia_iconbox_title' >back<\/span><\/a>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_buttonrow_item-eb6507a1095949ee39b746e3ef1d3050\">\n#top #wrap_all .avia-button.av-av_buttonrow_item-eb6507a1095949ee39b746e3ef1d3050{\nmargin-bottom:10px;\nmargin-left:10px;\n}\n<\/style>\n<a href='https:\/\/avs-advisors.com\/wp-content\/uploads\/2020\/03\/TTA_2018_02_AvS-industrys-change_EN.pdf' class='avia-button av-av_buttonrow_item-eb6507a1095949ee39b746e3ef1d3050 avia-icon_select-yes-left-icon avia-size-small avia-color-theme-color' target=\"_blank\" rel=\"noopener noreferrer\"><span class='avia_button_icon avia_button_icon_left ' aria-hidden='true' data-av_icon='\ue82d' data-av_iconfont='entypo-fontello'><\/span><span class='avia_iconbox_title' >Download PDF<\/span><\/a>\n<\/div><\/p><\/div>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-2a6n1o-6aeba8d515cc66995d2ad0cbef497f1c\">\n.flex_column.av-2a6n1o-6aeba8d515cc66995d2ad0cbef497f1c{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-2a6n1o-6aeba8d515cc66995d2ad0cbef497f1c av_one_fifth  avia-builder-el-8  el_after_av_three_fifth  el_before_av_textblock  flex_column_div av-zero-column-padding '     ><\/div><\/p>\n<section  class='av_textblock_section av-2i02f6-2158e40008e79c98b0dd64e4081f07a2'  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p>?<\/p>\n<\/div><\/section>\n<section  class='av_textblock_section av-av_textblock-445188a952fb265869ea404d0e52fad7'  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p>?<\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":5,"featured_media":7091,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[53],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.6 - 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