Avon 2010 Annual Report Download - page 7

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2010 Annual Report
In Russia, following social benefi t tax changes that impacted our fi rst year Sales
Leaders, we are introducing a new Sales Leadership compensation plan that increases
their earnings potential by 25%. We are also strengthening fi eld incentives and
consumer promotions to drive improvements in Representative productivity.
In addition to Brazil and Russia, we also continue to benefi t from our leadership
positions in other markets across the developing world. For example, 2010 revenue in
constant dollars increased over 60% in South Africa, over 50% in India, 17% in Central
America, 14% in Ukraine, and 10% in Colombia and the Philippines. (In reported
currency, revenue increased 82% in South Africa, 65% in India, 16% in Central America,
12% in Ukraine, 25% in Colombia, and 15% in the Philippines.) We continue to remain
positive on our long-term opportunity in China, where our focus is on transitioning from
retail to a full direct-selling model.
Across our geographic portfolio, we continue to enhance the overall value proposition
for Representatives, making it easier for them to sell and serve their customers. In 2010,
we launched a comprehensive suite of e-tools, including the e-brochure and other
web-based tracking tools. Our focus now is on driving broad-based geographic coverage
and usage of these tools.
Also in 2010, we launched a major new initiative to transform the service proposition for
our Representatives and customers. We are taking an end-to-end look at their entire
Avon experience. This includes order submission, product availability, product fulfi llment,
returns and customer service.
Strong beauty
growth is always
driven by strong
growth in Active
Representatives.