We employ certain web enabled systems to increase Representative support. which allow a Representative to run her or his concern more expeditiously and besides let us to better our order-processing truth. For illustration. in many states. Representatives can use the Internet to pull off their concern electronically. including order entry. order tracking. payment and bipartisan communications with us. In add-on. in the U. S. and certain other markets. Representatives can farther construct their ain concern through personalized web pages provided by us. enabling them to sell a complete line of our merchandises online. Self-paced online preparation besides is available in certain markets. In some markets. we use decentralised subdivisions. orbiter shops and independent retail operations ( e. g. . beauty dress shops ) to function

Representatives and other clients

Representatives come to a subdivision to topographic point and pick up merchandise orders for their clients. The subdivisions besides create visibleness for us with consumers and assist reenforce our beauty image. In certain markets. we provide chances to licence our beauty centres and other retail-oriented and direct-to-consumer chances to make new clients in complementary ways to direct merchandising. In the U. S. and certain other markets. we besides market our merchandises through consumer web sites ( e. g. . World Wide Web. Avon. com in the U. S. ) .

The recruiting or appointing and preparation of Representatives are the primary duties of territory gross revenues directors. zone directors and independent leaders. Depending on the market and the duties of the function. some of these persons are our employees and some are independent contractors. Those who are employees are paid a wage and an inducement based chiefly on the accomplishment of a gross revenues objective in their territory. Those who are independent contractors are rewarded chiefly based on entire gross revenues achieved in their zones or downline squad of recruited. trained and managed Representatives. Personal contacts. including recommendations from current Representatives ( including the Leadership plan ) . and local market advertisement constitute the primary agencies of obtaining new Representatives.

The Leadership plan is a multi-level compensation plan which gives Representatives. known as independent leaders. the chance to gain price reductions on their ain gross revenues of our merchandises. every bit good as committees based on the net gross revenues made by Representatives they have recruited and trained. This plan by and large limits the figure of degrees on which committees can be earned to three. The primary duties of independent leaders are the prospecting. naming. preparation and development of their downline Representatives while keeping a certain degree of their ain gross revenues. Development of the Leadership plan throughout the universe is one portion of our long-run growing scheme. As described above. the Representative is the “store” through which we chiefly sell our merchandises and. given the high rate of turnover among Representatives ( a common feature of direct merchandising ) . it is critical that we recruit. retain and service

Representatives on a go oning footing in order to keep and turn our concern. From clip to clip. local authoritiess and others question the legal position of Representatives or enforce loads inconsistent with their position as independent contractors. frequently in respect to possible coverage under societal benefit Torahs that would necessitate us ( and. in most cases. the Representatives ) to do regular parts to authorities societal benefit financess. Although we have by and large been able to turn to these inquiries in a satisfactory mode. these inquiries can be raised once more following regulative alterations in a legal power or can be raised in other legal powers. If there should be a concluding finding adverse to us in a state. the cost for future. and perchance past. parts could be so significant in the context of the volume and profitableness of our concern in that state that we would see stoping operations in that state.

Promotion and Selling

Gross saless publicity and gross revenues development activities are directed at helping Representatives. through gross revenues AIDSs such as booklets. merchandise samples and presentation merchandises. In order to back up the attempts of Representatives to make new clients. specially designed gross revenues AIDSs. promotional pieces. client circulars. telecasting advertisement and print advertisement can be used. In add-on. we seek to actuate our Representatives through the usage of particular incentive plans that reward superior gross revenues public presentation. Periodic gross revenues meetings with Representatives are conducted by the territory gross revenues or zone directors. The meetings are designed to maintain Representatives abreast of merchandise line alterations. explicate gross revenues techniques and supply acknowledgment for gross revenues public presentation. A figure of trading techniques are used. including the debut of new merchandises. the usage of combination offers. the usage of test sizes and samples. and the publicity of merchandises packaged as gift points.

In general. for each gross revenues run. a typical booklet is published. in which new merchandises are introduced and selected points are offered as particular publicities or are given peculiar prominence in the booklet. A cardinal precedence for our selling is to go on the usage of pricing and promotional theoretical accounts and tools to enable a deeper. fact-based apprehension of the function and impact of pricing within our merchandise portfolio. From clip to clip. assorted ordinances or Torahs have been proposed or adopted that would. in general. curtail the frequence. continuance or volume of gross revenues ensuing from new merchandise debuts. particular publicities or other particular monetary value offers. We expect our pricing flexibleness and wide merchandise lines to extenuate the consequence of these ordinances.

Competitive Conditionss

We face competition from assorted merchandises and merchandise lines both domestically and internationally.