28 September 2000

Avon Products, headquartered in New York, has allocated between $10-$15 million to set up Avon Centers, a new store-within-store retailing venture [WAMN: 19-Sep-00].

The launch budget will cover fixtures and marketing, while ad spend over the next five years will equate to 10%-15% of annual sales. Avon president-ceo Andrea Jung is insistent that the move does not spell the end for the firm’s famed flotilla of ‘Avon ladies’, who will continue to vend the core brand direct to women in their homes across the planet.

The stores, due to open in the second quarter of 2001, will be located within Sears Roebuck and J C Penney outlets, with both firms contributing additional funds to the launch, including ad and promotional spend.

To avoid cannibalizing the core Avon brand, a new 400-line range of cosmetics, toiletries and jewellery, will be created under the discrete banner, Becoming. Individual products within the range will be branded Becoming Centered (aromatherapy), Becoming Radiant (skincare and makeup), and so on.

The range will carry a higher ticket than Avon’s direct-selling products and target a younger and more upscale market – women in age group 25-35 with average annual household incomes of $50,000.

The launch campaign by J Walter Thompson USA will include print and TV ads themed Becoming You.

News source: Advertising Age - Daily Deadline