The Power of Beauty

AVON Philippines’ Julie Tatarczuk has been through amazing and devastating times since becoming general manager and president of the company in September. She was just settling in when Typhoon Haiyan wreaked devastating havoc in the island of Leyte. Known as “Yolanda” in the Philippines, the super typhoon made landfall in the island’s capital, Tacloban City – far enough from the central business district in Makati City, where Ms. Tatarczuk has her office, but making more of an impact than anyone could have ever imagined.

As a direct selling company in the beauty, household, and personal care categories, Avon relies on thousands of representatives – including the thousands in Tacloban City alone, many of whom had their homes leveled by the storm surge and all of whom lost a source of income. Yet to Ms. Tatarczuk amazement, it wasn’t long before there was a clamor in Leyte to get back to business.

Just a month later, Avon Tacloban had re-opened amid the wreckage and debris owing to the resolve of Avon Ladies to restore operations as soon as possible.

“We were looking for the right, sensitive time to roll out our programs and we were heartened when the sales leaders themselves stepped forward and told us that they were ready to get back to work again, because they really look at their Avon business as a critical part of recovering from Yolanda,” explains Ms. Tatarczuk.  “We immediately responded to their request because this reopening also means their own personal restoration after going through such a life-changing experience.”

The resilience of those women is why Avon is as much about empowering women as it is about a tube of lipstick. Yes, Avon Philippines sells 19 tubes of lipsticks a minute, but it is very much about being a company that offers women the opportunity to earn and be independent.

“The reason why I joined Avon was because I worked in many corporations before and this is the only company that genuinely has a heart. It’s about women earning opportunities, and it makes you think of business in a very different way,” she says. “I think, especially now in the Philippines, we’re helping to reestablish these micro businesses – it’s really very important to help these women get back on their feet to earn for their families.”

Prior to her assignment in the Philippines, Ms. Tatarczuk was CEO of Liz Earle Beauty Company, an Avon-owned company in the UK that is built on naturally active skincare, but considers herself at home in the Philippine market.

“The Philippines is generally considered a vibrant market because consumers are aware of the latest in global lifestyle trends. Filipino personal care consumers are curious and open to trying new products, but they also develop brand loyalty when they find products that work and satisfy them, and give them the value they look for,” she explains, noting that personal consumers in other Avon markets in Southeast Asia are just as savvy.

An Asian presence, a global ethic

Avon prides itself in knowing the Asian woman – and men and children, for that matter. It first entered the competitive Japanese market in 1969, and has operated in Southeast Asia, including the Philippines, for over 30 years. In many cases, the company introduced the direct selling concept to these markets and operated as a micro lender to hundreds of thousands of women.

In addition to a vision of empowering women through its marketing model and in CSR efforts to promote breast cancer awareness and campaign against domestic abuse, Avon also has raised quality and environmental responsibility standards in the markets in which it operates.

Avon is understandably proud of its product safety record, which can be traced to instituting a single Global Product Safety Standard for the nearly 1,000 beauty products developed in its labs every year. Controlled laboratory tests are performed at every stage of development and manufacture.

In 1989, Avon was the first major beauty company to stop testing products and ingredients on animals and took a proactive role by opening an in-house cell culture facility dedicated to the development of in-vitro alternatives to animal tests. The company also supports and funds external organizations that are working to develop viable alternatives to animal testing in all fields in Europe and the USA.

As a direct-selling company, Avon requires less packaging than other companies that sell through traditional retail outlets. Nonetheless, systems around the world are in place to reduce packaging waste and energy consumption, and to promote and measure re-use or recycling wherever possible. New packaging materials and production methods are evaluated to ensure that products and business operations fulfil a healthy balance with regard for environmental responsibility and meeting consumer demands for product safety and impact.

Trend-conscious consumers

Avon consumers want quality and value for money, many of them are also trend-conscious, which is what they get with the products the company’s portfolio. Popular Avon brands in the country include Avon Color make-up, Skin-So-Soft lotions, and Anew Genics skincare, among others.

“The customer profile is diverse, and our brand categories address the needs and preferences of different segments. We’re the company for women, naturally the focus is on what they want and look for, but our product lines cater to different age groups of the female market – from moms, teens and kids – as well as boys and men,” says Ms. Tatarczuk.

Avon, a leader in anti-aging skincare, has seen the category expand in the Asian market to address not only older consumers but also a younger demographic. Growing consumer awareness and desire to improve and maintain overall appearance and wellness is driving category growth.

“Aside from the older consumers who were the previous focus, you now have a younger population that is more conscious about the importance of taking care of themselves and starting this early. So we have products that are formulated and targeted specifically for this age group. Developments, technology and new breakthroughs also drive the anti-aging category as consumers continue to look for products that work for them,” she explains.

The personal care category for men is also evolving in the Philippines, in line with trends in the global market. She believes that Avon has been instrumental in the growing popularity of products for men, not the least with the launch of their product lines for grooming, fragrance and intimate apparel, and creating awareness on available options for Filipino men.

“Men’s grooming and skin care can be considered a growing category with male-specific products gaining better acceptance among Filipino consumers. This may be because the population has gotten more appearance-conscious, driven perhaps by what they consider important to their jobs, and influenced by women in their lives,” notes Ms. Tatarczuk, impishly adding that Avon Ladies are shaping their husbands’ attitudes toward skin care.

Networking in the 21^st century

Makeup blogs, YouTube how-to videos, and Facebook and Instagram posts, indicate how Filipinos love their beauty care routines. Being Internet and social media savvy, they can be influenced by their communities/peers and by celebrities they follow or look up to, says Ms. Tatarczuk. “Social networking is widespread in the country, with Filipinos being actively involved in their social media communities.”

Social media has a role in Avon’s marketing strategy. “With a huge number of Filipino consumers being active on social networking sites such as Facebook and Twitter, the brand must secure presence on these channels. So, yes, complementing launch campaigns with social media activities is part of the marketing strategy,” she says.

Still, Ms. Tatarczuk affirms, the direct selling strategy is far from being replaced. Success in the Philippines still remains firmly in the hands of thousands of Avon representatives who, on the average, sell in each minute 3 umbrellas, over 50 pieces of undergarments, 20 bottles of deodorant, 13 bottles of Skin So Soft  hand & body lotion and, not to forget, 19 tubes of lipstick.