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Latin Beat: First Avon Door in Brazil

By: Cristina Kroll
Posted: August 7, 2007

Avon has invested $1 million on the implementation of Avon Expressa, the company’s first cosmetic sales center in Brazil. Located in Guarulhos, a city with more then one million residents, the stocking center will train the company’s Brazilian sales force and offer the opportunity for consumers to sample products.

The company currently operates similar facilities in Venezuela, Argentina, Panama, Puerto Rico, Estonia, Malaysia, the U.S and China, and has found the business model to strengthen company/reseller relationships.

Avon has had a presence in Brazil for 49 years, and operates a plant in the city of São Paulo and distribution centers in the states of São Paulo, Minas Gerais, Ceara and Bahia.

The Power of Luxury

Coty Prestige has confirmed its interest in Latin America due to the region’s growth potential. Argentina is of particular interest because of its remarkable recovery after devaluation of the local currency in 2001. In fact, Argentina’s current growth rate is better than that of Brazil, according to Bryan Aykroyd, vice president of finance, Coty Prestige. Currently based in France, Aykroyd gained practical strategic knowledge about Argentina working for a local subsidiary of Procter & Gamble until 2000.

The importance Coty places on Argentina was reflected recently in the regional launch of the new fragrance ckIN2U in Buenos Aires. Approximately 500 guest­s—including journalists and retailers from Argentina, Brazil and Paraguay­—were present at the launch in
the Ciudad Cultural Konex in Buenos Aires. “The fragrance’s target is young people between 18 and 24,” said Aykroyd.