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Avon falling ?
July 2005 - eB eye goes shopping
Avon
Poland's battle with a former disgruntled employee
and lagging sales ignited some unwelcome speculation
as to the health of the business in this formerly
thriving market.
But as the clouds pass over, analysts are now
asking; "Crisis ? What crisis?"
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Click image for large version |
Former
Avon saleswoman Katrzyna Swindzinska kicked off
the attack, accusing Avon of setting unrealistic
sales goals that were over market demand and saying
that managers were falsifying orders to make up
the difference in Polish weekly, Gazeta Prawna.
This prompted a series of critial articles Poland's
largest daily, Gazeta Wyborcza, and negative reviews
from Avon clients in the paper.
But the Avon sales people in Poland wonder what
the ruckus is all about. Avon has said in repeated
public statements business is fine. Agnieszka
Czostek, a Warsaw sales rep says: "I have
no complaints.
Those kind of problems haven't touched me. My
business is pretty successful and stable. I'm
happy."
Avon has more reps per capita in Poland than in
the U.S. with a team of 245,000 selling in a Country
smaller than Texas. But after consistent growth
since starting in 1992, sales slipped 7% in 2003.
Piotr Bryski, an analyst at the PMR consultancy
says: "This drop was more a result of the
general economic slow down and increased competition
rather than over-saturation.
Avon is still the market leader, with a strong
position in a growing market. |
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