| Type | Public |
|---|---|
| Traded as | NYSE: AVP S&P 500 Component |
| Industry | Cosmetics |
| Founded | 1886 |
| Founder(s) | David H. McConnell |
| Headquarters | New York City, New York, U.S. |
| Key people | Andrea Jung (Chairman and CEO) |
| Products | Cosmetics Perfume Clothing Toys |
| Revenue | US$ 10.863 billion (2010)[1] |
| Operating income | US$ 1.073 billion (2010)[1] |
| Net income | US$ 609 million (2010)[1] |
| Total assets | US$ 7.874 billion (2010)[1] |
| Total equity | US$ 1.673 billion (2010)[1] |
| Employees | 42,000 (2010)[1] |
| Website | AvonCompany.com |
Avon Products, Inc. (NYSE: AVP) is a US cosmetics, perfume and toy seller with markets in over 140 countries across the world and sales of $9.9 billion worldwide as of 2007.[2]
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Avon Product is a multi-level marketing company.[3] The company's chairman and CEO is Andrea Jung, who was promoted to the position in 1999. She has completed a decade as CEO and is the longest tenured female CEO among Fortune 500 companies. On December 13, 2011, it was announced that Avon had initiated a search for a new chief executive. Jung will remain as CEO until her successor is found. She will have a role in choosing her replacement and will also continue as chairman of the board for the next two years. [4][5]
Avon uses both door-to-door sales people ("Avon ladies," primarily and a growing number of men) and brochures to advertise its products.
The California Perfume Company, Inc. of New York, NY filed their first trademark application for Avon on June 3, 1932 with the USPTO. Part of the description for goods and services provided to the USPTO included "perfumes, toilet waters, powder and rouge compacts, lipsticks," and other toiletry products. First use and commercial use for Avon by the California Perfume Company was on September 1, 1929. Registration was granted on August 30, 1932. The trademark is owned by Avon Products, Inc. of New York, NY. The status of the original stylized word mark for Avon is expired.
In addition to its corporate pursuits, the Avon corporation is involved in philanthropic causes. The Avon Foundation for Women, an accredited 501(c)(3) public charity, is the largest corporate-affiliated philanthropy for women in the world. Avon founded the Avon Foundation for Women with its first grant, a $400 scholarship, in 1955. Avon was committed to helping women achieve their highest potential of economic opportunity and self-fulfillment by empowering them through scholarships and support for other forms of educational and occupational training and advancement. Women's empowerment continued to be the focus through the early 1990s when Avon began to increase its philanthropy with a new emphasis on breast cancer; the Avon Foundation still awards scholarships for Avon Sales Representatives and their families, as well as for the children of Avon associates. The Avon Foundation is currently focused on two key causes: breast cancer and domestic violence.[6]
Since at least 2008, the conduct of various employees and executives of Avon has been investigated for possible violations of the law, including possible bribery and violations of the Foreign Corrupt Practices Act[7]
Avon began a probe of its China division after allegations of bribery in June 2008.[8] At least four executives, both in Asia and in the United States, were suspended in 2010,[8] and later fired for their roles in the activities being investigated.[9] According to the New York Times, Avon has spent over $170 million on legal fees and costs related to the investigation: $59 million in 2009 and $95 million in 2010, and $22.5 million for the first quarter of 2011.[10] The Times reported that the final tally may be close to $250 million, after which Avon would report the findings to the United States Department of Justice and the Securities and Exchange Commission and try to negotiate the penalties that those entities may impose.[10] On February 24, 2011, Avon filed a report with the Securities and Exchange commission highlighting the investigation as a corporate risk factor that could cause investor loss.[11]