Avon buys Silpada Jewelry

Avon buys Silpada

Avon is the world’s largest direct seller of beauty products, and it has bought Silpada Designs, a direct seller of sterling silver jewelry, for $650 million, in its biggest purchase since at least the 1990s to complement its existing businesses. This will provide more home business opportunities.  Avon is moving to acquire a business that both expands margins for the company.  Avon knows well, that Jewelry has long been a highly-favored line item. Both Avon and Silpada will benefit from joint sourcing and supply chain programs.

The purchase is Avon Chief Executive Andrea Jung’s third this year, following a long absence since the company’s last purchase in the 1990s. In March, Avon bought Liz Earle, primarily an online seller of natural skincare products followed with the April purchase of baby care brand Tiny Tillia.

Jewelry is part of Avon’s fashion business, which represents 17% of its total last year. In comparison, the company’s core beauty business generates more than 70% of its over $10 billion in sales. Avon has said it’s putting more emphasis on jewelry and has said it sees opportunities to make its own jewelry brand global.  Silpada also has increased annual sales on average 27% since 2004, Vargas said.

Silpada’s representatives sell its merchandise through party-plan settings, different from Avon’s person-to-person relationship-based model. Its jewelry line, with an average price above $25, also costs more than at Avon’s. Avon said it plans to keep Silpada’s existing management team and run it as a standalone business with its existing 32,000 independent sales representatives. Avon has about 6.2 million representatives.

What this means to the Avon or Silpada rep

If you are a rep of either Avon or Silpada, you proably will not see a big change in day to day operations. The main differnce is going to be in the managememt and the running of the company.  Also, you are probably looking for this information for one of 3 reasons.

1. Your money is funny – You are trying to make a little money on the side, but finding it hard to have the money needed to keep the business going.  People are buying, the ones that are buying aren’t paying and your credit cards are maxed out.  You need a way to keep it going until things get better.

2. No leads to build your organization – Avon has been around for a while.  That can be good and that can be good. It can be good because everyone has heard of it.  It is a stable company and you know that it is going to be around.  it can be bad because it has been around for a while. Everyone who wants to buy Avon has a rep alreadyand almost no one wants to do the business because they have tried it before and failed or they are just not interested.

3. The marketing is not working – You do everything that they tell you to do.  You put out flyers, talk to people at church, at the gas staiton at the grocery store. Still nothing!! No body seems to be getting the message.

We’ve experienced all of those things and we understand.  We recently stopped selling Avon ourselves.  Now we just buy a little for ourselves every now and now. If you can releate to one of the 3 issues above, we now help others with those issues. Click the link below to get started and find out how we can help. It Makes Life Better.

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