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ABC News
ABC News
Business
Aimee Volkofsky and Rebekah Lowe

Avon's business model out of date, experts say

An Avon sales representative says news the company was leaving Australia had come as a shock.

Avon announced last week that after 55 years of selling cosmetics, skincare, fragrance and fashion door-to-door, it was leaving the country.

The company had been one of the most recognisable direct selling brands, making sales through house parties, one-on-one demonstrations and increasingly through private social media accounts.

Famous for its "Avon calling" catch-cry, the company made the announcement through Facebook, which attracted an angry response from some of its 21,400 representatives.

The company said it had notified representatives via email before making the post, but some saw the social media post first.

Narelle Tweedy, who has been an Avon sales representative for 10 years, said she had been gobsmacked.

"I didn't see that one coming," she said.

"All those representatives have to find something else to do now, along with 200 employees who have to find some other income now."

Ms Tweedy said the Avon business model had played an important role for many women who wanted to work while balancing family life.

"It was so good for women. They could take their children with them and it would get them out of the house," she said.

"I really enjoyed it, getting out there talking to customers, I could get out there and meet new people."

Business model out of date

Queensland University of Technology business school associate professor Gary Mortimer said the original Avon model was out of date.

"We've changed, no one's at home anymore," he said.

"Knock on the door, we're all at work or doing something, so it doesn't really work."

Christine Moody, an entrepreneur and brand specialist, said the company had been too slow to change with the times.

"We have different models now, in-store experiences, subscriptions, online sales. Avon didn't go online until 2014. It was too late."

Representatives have been told there will be three more sales campaigns before Avon pulls out of the Australian market, taking them up to the start of May.

Ms Tweedy said her customers were preparing for the change.

"They're stocking up already on everything," she said.

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