David H. McConnell
Brief description of the products/services/business concepts
The Avon’s products are a powerful brand. Avon Representatives around the world sell four lipsticks every second. Avon has 90% brand recognition in most major markets. In fact, two out of five women worldwide purchased an Avon product in the last year. And more beauty products carry the Avon name than any other brand in the world.
Avon is the world's largest direct seller. Being an Avon Representative means you’re selling an iconic global brand while running your own local business. Direct selling is a type of sales channel, where products are marketed directly to customers, eliminating the need for middlemen – wholesalers, advertisers and retailers. Direct selling can be conducted one-on-one, in a group or party format, or online. At Avon, the “direct” part of direct selling also refers to the personal component of this sales channel; it’s about building relationships with people and offering them a high level of service and personal attention.
Avon is the world's largest direct seller. Being an Avon Representative means you’re selling an iconic global brand while running your own local business. Direct selling is a type of sales channel, where products are marketed directly to customers, eliminating the need for middlemen – wholesalers, advertisers and retailers. Direct selling can be conducted one-on-one, in a group or party format, or online. At Avon, the “direct” part of direct selling also refers to the personal component of this sales channel; it’s about building relationships with people and offering them a high level of service and personal attention.
Profile Of The Entrepreneur And The Business
David H. McConnell was the founder of Avon. Avon Founder David H. McConnell offered women a rarity in 19th century America: a chance at financial independence.
To McConnell, the product and the people were everything to the company, and he dedicated himself to ensuring that both would be successful. In addition to inspiring the Representatives, McConnell also wanted to encourage the company's employees with the same positive spirit. A century before it would become de rigueur for companies to institute employee incentive programs and hire hordes of consultants to make sure employees were happy, motivated and productive, McConnell knew just how to rally the troops. The motivational leader created a set of guiding principles that are still the heart and spirit of Avon today. They include:
- Providing an earnings opportunity so individuals can achieve financial independence and enjoy all that comes with such an accomplishment.
- Recognizing everyone's unique contributions.
- Giving back to the communities Avon serves.
- Offering the highest-quality products with a guarantee of satisfaction.
- Maintaining and cherishing the "friendly spirit of Avon."
A brief introduction of how the business started
In 1886, it was practically unheard of for a woman to run her own business. Only about 5 million women in the United States were working outside the home, let alone climbing the ranks of any corporate ladder. That number accounted for just 20% of all women.
On the heels of the Industrial Revolution in the United States, women were mainly confined to jobs in agriculture, domestic service and manufacturing, not exactly glamorous lines of work; the manufacturing sector, in particular, was notorious for its dangerous working conditions. On top of that, women’s wages across the board were a fraction of men’s.
For many women, McConnell would radically alter that scenario. The man behind the company for women was the son of Irish immigrants and grew up on a farm. Yet, it was this young man from rural New York, a visionary leader decades ahead of his time, who would become a pioneer in empowering women. McConnell, a bookseller-turned-perfume entrepreneur, would offer women the opportunity to create and manage their own businesses through what later became known as direct selling.
The origin of the idea begins during his travels as a book salesman, McConnell made two important discoveries. First, he quickly noticed that his female customers were far more interested in the free perfume samples he offered than they were in his books. He made these fragrances himself to serve as “door openers” when he traveled from home to home. Second, McConnell saw women struggling to make ends meet and recognized in many of them natural salespeople who would easily relate to other women and passionately market the products his new company would first sell -- perfumes.
On the heels of the Industrial Revolution in the United States, women were mainly confined to jobs in agriculture, domestic service and manufacturing, not exactly glamorous lines of work; the manufacturing sector, in particular, was notorious for its dangerous working conditions. On top of that, women’s wages across the board were a fraction of men’s.
For many women, McConnell would radically alter that scenario. The man behind the company for women was the son of Irish immigrants and grew up on a farm. Yet, it was this young man from rural New York, a visionary leader decades ahead of his time, who would become a pioneer in empowering women. McConnell, a bookseller-turned-perfume entrepreneur, would offer women the opportunity to create and manage their own businesses through what later became known as direct selling.
The origin of the idea begins during his travels as a book salesman, McConnell made two important discoveries. First, he quickly noticed that his female customers were far more interested in the free perfume samples he offered than they were in his books. He made these fragrances himself to serve as “door openers” when he traveled from home to home. Second, McConnell saw women struggling to make ends meet and recognized in many of them natural salespeople who would easily relate to other women and passionately market the products his new company would first sell -- perfumes.
How the business gained success
What makes direct selling such an attractive career option is the flexibility it offers. Those who engage in direct selling are independent contractors who determine how much time and energy they want to invest in their businesses. They set their own hours, and define and control their work-family life balance. An Independent Sales Representative is her own boss. Direct selling is also a way to own a business with minimal capital investment.
According to the World Federation of Direct Selling Associations (WFDSA), 62 million people, roughly the population of France, are part of the global, direct-selling sales force. Direct sellers around the world have $114 billion in sales annually.
According to the World Federation of Direct Selling Associations (WFDSA), 62 million people, roughly the population of France, are part of the global, direct-selling sales force. Direct sellers around the world have $114 billion in sales annually.
The ups & downs of the entrepreneur & his/her business
Historically, the whole premise of Avon’s business had been door-to-door selling. So what happens when no one is home to answer that door? It’s a question the company had to address in the 1970s, once more women were working outside the home. One answer was the Advance Call Back brochure, a brochure that could be left on a doorknob and included samples.
A second solution came in 1986: workplace selling. This was a way to move the Avon “store” to a place which the customer could access more easily.
Earnings Opportunity 2.0
Until the early 1990s, there was only one way for an Avon Representative to earn money: by selling to customers. That changed with the launch of Avon’s Sales Leadership program. Representatives could earn money, not just by selling, but also recruiting and training others.This new earnings avenue could exponentially increase the amount of money her Avon business generated. It’s the reason some Representatives today are running multimillion-dollar Avon businesses.
Harnessing Technology
Nothing in recent history has changed the way people interact and shop more than the Internet; the creation of a digital, virtual world has altered fundamental behavior.
Avon’s challenge was to find a way to adapt to this sea change while preserving the core personal-attention component of its direct-selling model. The company needed to marry high tech with high touch. And it did.
Always the innovator, Avon created a collection of digital tools so Representatives could use the technology - which had become so integral to their daily lives - in their businesses. Online ordering; "intelligent ordering" with prompts about special promotions; an “eBrochure;” and customized online communities all help Avon Representatives run their businesses as never before.
The Staying Power of Direct Selling
The Little Dot Perfume Set is long gone, save for a special 2011 anniversary limited edition. Change is at the core of any beauty business – shifting trends and tastes, seasonal color palettes and forever-improving technology.
But a critical constant of Avon’s global beauty business - in addition to the empowerment of women – is something that can never be replaced by the dot-com world. “The relevance of direct selling has to do with what the consumer expects from service,” says Angie Rossi, Group Vice President, North America Sales. “There will always be a space for relationship-based service to the consumer.”
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