Miguel Fernandez, global president of Avon. —EARVIN PERIAS
In the era of e-commerce and social media interaction, the personal touch through direct selling in the beauty and personal care industry is more relevant than ever.
Instead of posting loads of information on various digital platforms and waiting for the sales to ensue, direct sellers pursue leads, simplify overwhelming information for customers and extend that genuine human interaction that brands don’t always deliver.
Miguel Fernandez, Avon’s new global president, made a crucial distinction.
“E-commerce is just a transaction. It’s an effective way in exchanging a product for payment. On the other hand, direct selling is not only selling but also adding a service around the product. In our case, when we sell you a product, the representative is an advisor who tells you which color is suitable for you and updates you on trends. Adding all these human elements makes our sale more complete. We are selling an experience. Millions of our beauty advisors know what they are talking about, and what is around the product what the customer would want. Although they can sell their products through the internet, the important thing is not the transaction but everything that surrounds the transaction that would make the customer come back again and again,” he said.
He explained that Avon’s business model was to make the representative a vital part of the transaction. “We want someone who cares about them and coaches them. The reps are provided with a lot of content. They should make the customer feel that they are building a relationship, not just buying a product.”
Pushing 47, the Mexican-born Fernandez has worked in Mexico and in the United States, starting in Procter and Gamble. He has since ventured into other positions in investment banking, technology and direct selling.
Asked what attracted him to Avon, he said Avon was the leading global direct selling company. Moreover, its sales force continues to increase every year to reach more consumers.
Fernandez also believed in the company’s social responsibility component. “It’s not only about selling products but also about making a difference in the communities that we operate. We are providing millions of women around the world the opportunity to become financially independent. They can have flexible hours—if they want to dedicate two or three hours to selling our products, it’s a great part-time opportunity. We don’t require anyone to have academic credentials. We can empower whoever wants to join us. They start with a little income, then part-time income. In some cases, full-time income.”
Then there are the global and local initiatives to help women.
Avon donated $1 billion for breast cancer education, mammograms and screenings and empowerment programs on domestic violence.
Avon Philippines has raised P24 million to support the breast cancer crusade with beneficiaries such as the Avon Philippine General Hospital Breast Care Center. Every year, it raises funds through product sales that go to mainstream help lines for domestic violence.
As the new boss, Fernandez’s vision is to expand to new markets.
“We are only in 57 countries. There are at least 40 where women need opportunities for legitimate business or get part-time income into their families that can change the whole way family lives. The income could go to a family vacation, changing the car, paying school for the kids,” he added. “The winning equation is the customer will be better served, the reps will make money and we make business.”
Fernandez enjoys the dynamism of job. Avon’s product portfolio changes in every country. One of the reasons he visited the Philippines is that it is the largest Avon market in Asia Pacific and the fourth largest market globally.
In the Philippines, the typical Avon rep is between 35 and 40 years old from the lower-income groups. Its market profile consists of women from 18 to 45 years old in the middle and lower classes.
Avon Philippines leads in color, fragrance, hand and body lotion and lingerie. Its top sellers are the Perfectly Matte Lipstick, Simply Pretty, Skin So Soft with Glutathione and Fashions Intimate Apparel.
“Central Europe is strong in cosmetics and fragrances. Mexico is focused on home and fashion. It has the largest sector on pots and pans. Although our core is that of a beauty company, some countries diversify. In the end, the essence is to provide business opportunities to women,” said Fernandez.
Avon diversified from lipsticks to pots and pans as a business opportunity. Fernandez said the rep observes that customers acquire pots and pans and saw it as additional revenue earner. Avon has since been collaborating with manufacturers.
“Ultimately, we want to be the business partners of our reps and support them,” he said.
On his challenges as the global head, Fernandez candidly admitted that he gets the bad news. “It requires putting out the fires. I wake up with an issue in South Africa. Tomorrow it’s Brazil with its ever-changing taxation. There may be manufacturing problems around the world. How do we operate in the political environment of Venezuela?”
He acknowledged his colleagues for helping him out. “Surround yourself with great people. They are smarter than me. It’s like being a head coach with superstar athletes. Just field them in the right place so they can do what they know how to do. A lot of my job entails putting the great talents around the world.”