Exclusive | On an expansion mode: Avon's Ujjwal Mukhopadhyay

Avon Beauty Products India is looking to consolidate its presence in the domestic beauty products market by launching 300 new products this year and covering more towns from the present 100 to over 1200 in the next two years. The new products would be launched across several categories, including colours, jewellery and skincare.  

 

Ujjwal Mukhopadhyay, Managing Director, Avon Beauty Products India was speaking to Adgully regarding their steps and strategies going forward.

 

He says, “For the last three years we have been growing at 40 per cent CAGR. We would like to maintain this healthy growth rate in the coming years.”  The company currently estimates its share in the domestic market to be around 0.50 per cent of the $ 3.2 billion market – divided between direct selling and retail trade. The company which is a subsidiary of the US-based Avon has more than 65 lakhs representatives selling its products over 100 countries. It had posted global turnover of more than $ 11 billion last year.

 

Avon currently operates in the home delivery segment through direct selling and has a negligible presence in the retail stores segment with about 12 stores. The direct selling market in the country is estimated to grow at 20 per cent to Rs 10,800 crores by 2015 from Rs 5,320 crores in 2010-11, according to the annual survey report (2010-11) by the Indian Direct Selling Association.

 

According to Mukhopadhyay the strategy is to go in depth and increase penetration in the direct selling mode. They shall look at retail stores format going ahead but currently there are no plans to focus on it.

 

Speaking about the pricing strategy he said, “Our products are priced between Rs 35 to Rs 2000. As we look at reaching majority of women users affordability is a key criterion. Our current distribution structure is more about personal touch as there is very good earnings opportunity and to expand the product portfolio.”

 

In a country like India where the per capita consumption of beauty products is low, marketing and distribution matters. Creating new touch points that helps create business is significant to growth. Mukhopadhyay says, “Going ahead we would like to be present in around 2,000 places. I would not like to put a time frame for covering these areas, but this is the way forward.”

 

The company currently sells its products through its representatives in 16 states covering around 70 per cent of the population. “By 2015, we would like to cover around 93 per cent of the population across the country,” Mukhopadhyay added.

 

The company has a manufacturing unit at Dehradun, which produces 85 per cent of the products sold in India and rest 15 per cent of the products are imported from various locations globally.

 

As far as advertising strategy is concerned Mukhopadhyay told us that there are no plans to advertise for Avon in India as word of mouth plays a lot for the company whereas for the digital route per say, it has a Facebook presence and has a huge fan following. Globally the strategy is to go more and more digital. 

 

The company also has plans to strengthen the men care market and believe that the market for men in India is estimated at Rs 1,700 crores with an annual growth rate of 25 per cent.

 “Going ahead, Avon will continue to focus on women, but would also tap the fastest growing segment in the personal care market,” he said.

 

Avon has always stayed away in terms of making any celebrity the face of the company or any model for that matter. Mukhopadhyay while signing off very proudly made a statement saying, “For Avon every women is the face of the company.” | By Aanchal Kohli [aanchal(at)adgully.com]