One of the world’s biggest cosmetics companies is pulling back from the “tough” U.S. market to focus on women in emerging markets.
Avon CEO Andrea Jung is telling the media that as far as she can tell, developed markets are a “tough go” this year but the emerging world remains healthier. As such, AVP (quote) is courting more customers in places like Brazil.
Latin America already makes up 40% of AVP’s business and the Russian states account for another 15% — these are places where the women are not afraid of a little make-up.
Naturally, these countries have their own cosmetics brands. Brazil is famous for Natura, which has built something of an Avon door-to-door model. But there is no ADR, so you cannot trade it here.