1982: $0.82/Share 2011: $29.71/Share
In 1886, David H. McConnell founded the California Perfume Company, which eventually became Avon, in New York City. A book salesman, he had created a rose-scented perfume as a “free gift” to encourage people to buy his books. The perfume became so popular, McConnell decided to abandon the book business and start a perfume company instead.
In 1897, McConnell built the California Perfume Company’s first factory in Suffern, New York. After his death in 1937, his son took over the family business. The company changed its name to Avon in 1939 in honor of Shakespeare’s hometown, Stratford-on-Avon.
DIRECT MARKET
ING BEGINS
Avon’s direct-marketing system was developed by Mrs. P.F.E. Albee in 1886, and was the first of its kind. As Mrs. Albee sold perfumes door-to-door, she recruited a team of saleswomen. Direct-marketing offered women a chance to work outside the home in an era when they ha
d few opportunities to do so.
The company’s first catalog appeared in 1896 with no illustrations. The first full color catalog was produced in 1905. Avon recorded its first $500 sales day in December 1897. The company sold $1 million worth of products in 1920. In 1972, sales reached a staggering $1 billion.
Avon’s first product was the Little Dot Perfume Set. By the end of the first year of business, the company had a line of nearly 20 different fragrances. In 1902, the company was selling a full range of cosmetics. In 1931, 11 products received the coveted Good Housekeeping Seal of Approval. The first “novelty” decanters were sold in the 1960s. The collectible glass car decanters appeared in 1968. Over the years, the whimsical decanters featured themes ranging from animals and flowers to planes and trains.
Like many industries, Avon retooled half its factories during World War II to produce products for the war effort, including insect repellents and gas mask canisters. With the American economy booming after the war, Avon’s sales soared. By 1949, there were 65,000 representatives and 2,500 employees.
EVOLUTION OF AVON’S MARKETING
For decades, Avon relied solely on catalog sales through their network of representatives. The first TV commercial for Avon appeared in 1954 with the famous “Ding Dong! Avon calling!” tagline.
In 1989, Avon announced it would end animal testing for all its products. It was the first major cosmetics company to do so. In the 1990s, Avon launched a campaign to raise awareness for breast cancer by selling “pink ribbon” items.
Avon has grown from a small perfume company in New York into a global cosmetics and fragrance industry with almost 5 million representatives. The original product line has expanded to include jewelry, soaps, Christmas ornaments and other household goods. Customers can purchase Avon products through a representative, online or in certain department stores.
In recent years Avon focused on expanding overseas, and about 80 percent of its revenue comes from outside of the U.S. Latin America alone makes up 50 percent of the company’s sales. Analysts’ estimates for Avon’s 2011 revenue are $1.88 billion.
Editor Phil Robertson is an award-wining journalist and graphic designer. With a degree from the University of Florida’s School of Journalism, his career in journalism and publishing spans over 30 years, and includes positions as editor a
nd publisher for several newspapers and magazines. During his career he has received a first-place award for investigative journalism from the Society of Newspaper Editors, and five ADDY awards for advertising design.
