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Ben Gallina, Senior Vice President, China, Western Europe, the Middle East & Africa and Asia Pacific in Avon, has full profit-and-loss responsibility for operations in half of the company’s regions. His responsibilities span more than 20 markets and sales in his regions totalled $2.47 billion in 2008. The 32-year company veteran talks about the opportunities for the direct selling industry in the current economic climate and how Avon has remained strong since it was founded more than a century ago.

AS a result of the current economic crisis more people are looking for new ways to earn money and that spells opportunity for the direct sales industry. I feel it is important for us to seize this moment and promote the flexible earnings opportunities we offer more widely and raise our profile. While the current situation is bleak for businesses and consumers, in many markets the number of direct selling agents has increased and we should recognise we can be the solution for many people.

Certainly in Avon we have sought to capitalise on this opportunity. We have been investing more resources into promoting our earnings opportunity through a variety of mediums including the internet, TV advertising and extensive public relations activities and we have been very encouraged by the results. People who have never seriously considered direct selling before have been attracted by the opportunity to earn money in a way they can fit around other commitments.

We recently funded some independent research which showed that 70 per cent of stay-at-home mums in Great Britain will go back to work sooner than they expected due to money concerns, with 33 per cent aiming to begin work immediately. The majority
(86 per cent) are worried that there aren’t enough flexible employment opportunities for mums like them looking to return to work. This is where we can be the answer.

Over the past few weeks I’ve visited markets across Western Europe and Asia to carry out business reviews and as I always like to take time to meet with some of our Sales Leaders and Representatives. During these meetings I heard encouraging stories of people who had joined Avon in the hope of supplementing their income or to replace a full-time job they had lost as a result of the recession. In some instances they had not only increased their income significantly, but had changed their lives dramatically for the better. They had been able to quickly build a business through our Sales Leadership programme and see the opportunity to grow their business; something they did not think would be possible – especially in the current environment.

There’s no doubt the recession is hitting the consumer purse hard and this is impacting businesses across the board. I don’t believe any organisation is exempt, but in direct selling we have another benefit, that we can increase our reach and coverage more quickly and more cost effectively than retailers. They are struggling to keep existing stores in profit and curtailing their plans for new store openings and many local independent retailers are having to close down despite consumers’ desire to support local businesses. Even as an international brand, we can be the local independent “store” with personal service and competitively priced products.

Through the course of its 123-year history Avon has faced many external crises and remained strong. The business was relaunched during the great depression of the 1930s and Avon Representatives continued to sell through the Second World War and in fact supported the war effort by selling war bonds.

And in the 90s Avon not only survived but went on to thrive following two major economic crises, the devaluation of the Russian Ruble (71 per cent overnight) and the Brazil Real (by 56 per cent).  These experiences not only provided learning, but give us confidence that we can remain strong and successful even with the challenges today presents.

While our operating structure has changed over the years, the Avon Representative and her main selling tool, the Avon brochure, remain the core of Avon and have stood the test of time. We have stayed true to the principles of our founder, David H. McConnell, and they are more relevant than ever in today’s challenging environment. Strive to provide individuals with an opportunity to earn in support of their wellbeing. To serve families throughout the world with products of the highest quality backed by a guarantee of satisfaction. Give full recognition to employees and Representatives, on whose contribution Avon depends. I believe it is this and our earnings opportunity, particularly for women, that have helped us to stay so successful.

I believe the future for the direct selling industry is very bright. In these harsh times people are looking to earn money or for a way to build a business that does not require a major financial investment. They want flexibility and to decide how much time they invest. We can be the answer.

Over the past six months the world has changed dramatically and we must accept that this severe economic recession is going to be our reality for some time to come. However, I do think that when the recession is over as an industry we could be in a stronger position. Certainly in Avon that’s our aim.

Origins of Success

Avon started out as the California Perfume Company in 1886 when founder, Mr. David McConnell, a book salesman from New York, discovered that the rose oil perfumes he was giving away free were the real reason people were buying his books.

The company was renamed Avon in 1939, after the river that runs through Stratford-Upon-Avon in England. The name was a tribute to McConnell’s favourite playwright, William Shakespeare, who hailed from the town.

Women have been selling Avon since 1886 – 34 years before women in the US won the right to vote! The first ever Avon lady, Mrs. P.F.E. Albee of Winchester pioneered the company’s now-famous direct-selling method.

The Avon Foundation was founded in 1955 to improve the lives of women and their families. Now past its half-century milestone, the Avon Foundation is a public charity that focuses on breast cancer and domestic violence. From the initial $400 scholarship in 1955, Avon philanthropy has expanded globally and through 2008 exceeded $660 million raised and awarded worldwide.

Today there are almost six million Avon’s sales Representatives and Avon products are sold in over 100 countries around the world.