Country Focus
May 2011
Country Focus: Avon Partner ‘Delivers the Promise’
.jpg "Managing Director Alpan Cosmetics (Avon) Stelios Taki")
Looking back, Avon’s decision to appoint a distributor partner in 1985 can be seen as the first serious attempt by a major direct selling organisation (DSO) to enter this small market.
The licence went to a local family business keen to diversify its successful retailing interests, who embraced both the model and the spirit of Avon, ultimately leading the way for others to follow.
Managing Director Stelios Taki, whose parents ran the business in the early days, said the challenge at that time was twofold. “Direct selling was a new concept so we had to educate people about the opportunity as well as introduce a new beauty brand to the island,” he said.
“With a new product and a new sales channel, it took a while to get established, but not as long as we had expected. People liked the products, we had strong support from Avon in terms of training and guidance and we soon saw a return on investment,” he added.
The business was named Alpan Cosmetics and while working within the guidelines set down by Avon, the company developed to suit local cultural and social conditions. For example, strong family ties mean recruitment and sales are very much based on extensive personal networking, which has been instrumental in the company’s growth. On a small island where ‘everyone knows everyone’ networking is the natural choice.
A five-time winner (in the past 11 years) of Avon’s Distributor of the Year Award, Stelios has taken the long-term view, growing the business steadily through satisfied active Representatives who generate high-volume sales.
Retention is especially crucial in such conditions. “Our focus has always been to appoint good quality Representatives and to ‘deliver the promise’ to ensure they enjoy their Avon experience,” he said. This means offering a meaningful earnings opportunity and supporting them through ongoing training and excellent service, in addition to an attractive motivational package. Orders are usually delivered within 24 hours and a state-of-the-art training facility for 150 people will form part of new purpose-built premises.
Support extends to Alpan administering Representatives’ tax affairs, keeping essential records and liaising with officials so all they have to do is pay their tax when the demand is sent to them. “We take care of the necessary paperwork and it takes away all the hassle,” added Stelios.
“In a small market like ours the pool for recruitment is so small we can’t afford to lose good people, so we find ways to differentiate ourselves from other companies,” explained Stelios. Retention rates of 85 per cent are the envy of other DSOs, with a strong correlation between Representative retention and customer loyalty. Almost all their area sales managers started as a Representative, which reflects the sense of affiliation and respect that exists at all levels.
Priorities include phase one of a new website, aligned with Avon, as part of a wider internet strategy to enable online ordering and attract new customers. Building work is due to start shortly on new premises that will bring together operations and head office functions on one site, creating efficiencies and cost savings.
Investment on this level indicates there is still potential to be explored. Stelios points to the growing use of social networking among younger people and to those who prefer not to buy through the traditional brochure method as areas where incremental sales can be achieved.
