【導(dǎo)讀】Production. otherplants;largecitesinChina;supermarkets;Discount/Coupon;TV/Radio:35%;Operatingrevenue(RMBMillion). Futuretrends. Production. Distribution. citiesinChina;Operatingrevenue. AvonGroupinChina. AvonProduct. (Guangzhou)Co.,Ltd.wasestablished.AvonManufacture. (Guangzhou)Co.,Ltd.wasestablished.AVONbrandlaunched.Avon’sdirectsalesteam. Avonbegantosetup

　　

【正文】 0 6,000 RMB 3,000 RMB 4,000 7,000 RMB 3,000 RMB 5,000 20,000 RMB 48,00083,000 RMB 1,800 RMB 49,80084,800 RMB 48,00083,000 Assumption: 1. 30 , working area 2. 47 staff for a franchise shop 3. RMB 1,000 /staff/month 4. Equipment such as the beauty equipment and puter etc. Goods RMB 12,000 20,000 Fixed cost when opening a franchise shop. PwC 36 Distribution Channel Source： Industry interview PwC analysis ? Franchise Shop System – Avon Group When open During the operation Franchise shop profit Common Discount 72% “onetime” discount to purchase a package including each of Avon?s beauty products 30% discount to purchase Avon’s products ? 1%4% additional discount if the shop purchases over RMB 20,000 per month ? Varying special discounts by season ? Gifts when purchasing ? Special award to the outstanding shops The actual profit for the franchise shop is nearly 35%50% given all the discounts Special Discount PwC 37 Distribution Channel Source： Industry interview PwC analysis ? Franchise Shop System – Avon Group When open During the operation Franchise shop Credit terms Common Terms Cash on delivery (COD) ? Special loan will be provided by Avon after three months ? The Avon offices will decide whether to provide the loan and the loan amount based on the shops? monthly sales revenue Special Loan ? No special loan PwC 38 Distribution Channel Source： Industry interview PwC analysis ? Franchise Shop System – Avon Group When open During the operation Franchise shop Product ordering Product change ‘For Test Only’ Product ? 5% goods ordered last month can be changed to other products at equal price ? Free supply of “new test” products equal to % the total value of goods ordered the month before Approach ? Beauty products: by telephone or inter ? Other products including underwear by inter Now Avon offices encourage all the shops to order products via inter Delivery time ? Beauty products: At once from Avon offices ? Other products including underwear After 35 days from Avon offices PwC 39 II. Avon Group i: Target Overview ii: Market and Products iii: Distribution Channel iv: SWOT Analysis and Comments iv: Financial Analysis PwC 40 SWOT Analysis and Comments Source： Industry interview PwC analysis ? Main Products – Avon Group Category Facialcare Makeup Bath amp。 Bodycare Fragrance Ladycare Avon has many categories and series of products: Products CLEAWHITE, AVON SUN, NINGBAI* series XINXUAN* series XIANTILU* series WOMEN OF EARTH, INCANDESSENCE, LITTLE BLACK DRESS series LADYCARE series * Direct Chinese translation PwC 41 ? Product Life Phase – Avon Group Source： Industry interview PwC analysis Main Types Short Long Products Replacement Period Common Replacement Period: to 2 years Improve the products without changing the names Add similar new products (nearly same functions) in some series with new names Create pletely new product series to expand the product category Add new types of products (new functions) in some series with new names As the largest category of Avon, facialcare often launches more and faster than any other categories SWOT Analysis and Comments PwC 42 Source： Industry interview PwC analysis ? SWOT – Avon Group Product ? Good brand image and stable customer base ? Long product lines in beauty products Distribution ? Nationwide distribution works covering the small to large 77 cities all over China ? Nearly 4,800 franchise shops to market Avon products Company ? Good pany culture and value theory ? Lots of focus on improving the manpower Strength Weakness Product ? Lack of a “star” product category ? Lack of multiple brands other than Avon and Up2U。 Distribution ? Weak control over the franchise shops? works because there are too many shops to control ? Limited support to the franchise shops ? Too much focus on the quantity instead of the quality of the franchise shops SWOT Analysis and Comments PwC 43 Source： Industry interview PwC analysis ? SWOT – Avon Group ? “Multibrand” strategy in the future such as launching Up2U ? Improve its distribution works such as focusing more on the management and increase support to the franchise shops ? More efficient logistics process by using inter ? Continue to expand franchise shops and counters in the cities to expand its large work acpanying the better control from Avon offices ? Lack of good products to attract more potential customers ? More petitors are doing feasibility research and considering to copy Avon?s distribution patterns such as some Korean players ? Some franchise shops are closing up due to bad sales performance ? Some shops act against Avon?s rules to sell other brands? products ? Self petition among Avon?s own franchise shops and counters due to their close distance and nearly the same customer groups Opportunity Threats SWOT Analysis and Comments PwC 44 II. Avon Group i: Target Overview ii: Market and Products iii: Distribution Channel iv: SWOT Analysis and Comments iv: Financial Analysis PwC 45 Financial Statement ? Balance Sheet Avon Group (1 of 2) Source： Industrial amp。 Commercial Administration Bureau PwC analysis Avon Product (China) Co., Ltd* B A L A N C E S H E ETA S A T 31 D EC EMB ER 1 99 9 In R m b YuanAS S E T S 1999 1998CU RR E NT AS S E T SCa s h 564 , 905 . 30 130 , 709 . 70Ca s h i n ba n k 113 , 223 , 560 .35 107 , 737 , 359 .09A c c ou nt s r e c eiv