Direct-selling still bigger than live-selling for Avon Philippines
MANILA, Philippines — Amid reports claiming that direct-selling is no longer working, allegedly leading to bankruptcy filings such as those by Avon Products Inc. last August and by Tupperware a month after, Avon Philippines affirmed to Philstar.com that the practice remains to be its biggest revenue driver as opposed to other platforms like e-commerce.
“Avon, it’s really known for direct-selling… But we still have our reps (representatives) also, and our reps also do TikTok live (selling)… since the pandemic,” said Charm Adasa Anonas, Junior Manager for Skincare, Avon Philippines.
“Right now, bigger pa rin ‘yung traditional (direct-selling). It’s kind of hard for us to really track this because some reps do both (online and direct-selling),” she added, sharing that the company also has its own TikTok Squad composed of sales representatives.
“Definitely, in terms of getting your products across the market in terms of like social media in general, very, very helpful. We had products where we saw a boost in sales because of social media. I don’t have data… But I think everyone now has social media (accounts).”
Although their marketing efforts include organizing events and tapping different channels from online flagship stores to retail outlets, according to Anonas, e-commerce is still not yet a significant source of revenue.
“To be honest, it’s still a very small chunk (of the business) compared to our traditional tool (direct-selling). But it’s still growing.”
According to her, the company is number one in makeup, fragrance and lotion locally in the beauty category. Under makeup, “definitely the lipsticks” are the bestsellers from the brand.
Skincare is an opportunity for the brand since Avon “is not yet top-of-mind” in skincare, said Anonas, but the company is seeing Anew, the company’s bestseller under skincare, as an “opportunity” to tap a bigger market since this anti-aging line is “Science-backed.”
Opportunity, not challenge
Instead of calling direct-selling a challenge in the face of other selling methods like live-selling, Avon Philippines general manager Vanee Gosiengfiao sees modernizing the direct-selling business as an opportunity.
“I want Avon to continue to be relevant in the Philippines. I want the business to continue to grow, but more importantly, how to continually drive women empowerment,” she said.
According to her, for as long as the company sticks to its ethos of empowering women through direct-selling, such marketing effort that Avon pioneered in 1886 would still steer the company to its growth.
“As I go around the branches sa bansa, nata-touch ako sa stories ng mga women reps namin in terms of how Avon transformed their lives – making them financially independent, nakapag-aral, napa-aral nila ‘yung mga anak nila. So I want to continue driving that mission here in the Philippines,” she shared.
Instead of seeing other forms of selling as potential killers of direct-selling, Gosiengfiao sees these as even allies in achieving her vision of doubling the business in a few years.
“Alam mo, nakakatuwa, ‘yung iba naming reps, they’re on TikTok! They’re doing very well. So more of that in the future,” she declared.
The company boasts of having close to 200 retail shops nationwide, and regardless of whether their representatives’ stores are physical or online, the company gives these representative the same support, she said .
“And even our reps, they open their own stores and we support that,” she affirmed.
“It’s very important because our shoppers shop in various ways – whether it’s direct, through retail or e-commerce. So we are able to make our products available to our various shoppers and still be able to support our women reps to continue help growing their business.”
Celebrity endorsers
Through online platforms, the company is also able to maximize its celebrity endorsers.
“Very effective,” she said when asked how effective celebrity influencers are. “But also, they help us to engage with the various types of consumers that we have. And that’s really the value that they have for our brands – they can connect us, they can engage, they can talk about the products. They can help educate consumers about our products.”
"Definitely, because we also would like to work with like-minded individuals and personalities who share the same values as Avon and of course, would resonate with our audience,” added Avon Philippines Communications Head Marion Limlengco when asked about working with celebrity endorsers.
Direct-selling leader for 46 years on
Gosiengfiao told Philstar.com she spent decades in consumer healthcare with various healthcare companies before officially joining Avon Philippines last August 1. Just as she found her “purpose in driving transformation and leading change” in the previous companies she worked with, she aims the same for Avon.
“I hope I can bring that to Avon also – how we can further transform the business to make it stronger for the future,” she attested.
Globally, the brand has around five million representatives, and around hundreds of thousands in the Philippines, said Limlengco.
“What really attracted me to join Avon is really the mission and the purpose of Avon – of really helping to empower women,” Gosiengfiao explained.
“So the business model is really about that – being able to empower women. I think it is the secret ingredient. And of course, the products are high-quality. The Avon brand name is very strong, but at the heart and soul is really to help and empower women. That for me is our secret ingredient and what makes us relevant,” she said on what makes Avon a direct-selling leader in the Philippines for 46 years and counting.
