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The encyclopedia · Sales & Retail · Strategic decision · 2024

Avon's door-to-door 'Avon lady' model faded with the internet — then bankruptcy

For over a century Avon sold cosmetics through its door-to-door 'Avon ladies.' As shopping moved online, sales fell for years; Avon went bankrupt in 2024.

Avon · 2024-08

What happened

Avon, founded in 1886, built one of the most recognizable sales models in history: the 'Avon lady,' a door-to-door salesperson who sold cosmetics and personal-care products directly to customers in their homes. For more than a century, that direct-selling model was the engine of the company, employing millions of representatives around the world.

But the model that made Avon famous became its weakness. As shopping moved online and to retail stores, and as fewer people wanted to buy cosmetics from a door-to-door salesperson, Avon's sales declined. By 2014 the company reported its fifth consecutive year of falling global sales, with North American revenue down 18% that year. Avon struggled to adapt its direct-selling model to a digital age.

The decline continued for years. Avon closed operations in some markets, and in August 2024 Avon Products filed for Chapter 11 bankruptcy, weighed down by lawsuits over talc-based products and years of falling sales. The company that had built an empire on the 'Avon lady' became a cautionary tale about how a once-dominant sales model can fade when the way customers buy changes.

Why it happened

  • Avon's business was built on a door-to-door direct-selling model that depended on customers buying cosmetics from a salesperson at home.
  • As shopping moved online and to retail stores, and fewer people wanted to buy from a door-to-door salesperson, Avon's sales declined.
  • Avon struggled to adapt its direct-selling model to a digital age, reporting years of consecutive sales declines.
  • Weighed down by falling sales and talc-product lawsuits, Avon filed for Chapter 11 bankruptcy in 2024.
What it costa century-old sales model; 2024 bankruptcycatastrophic

The lesson

A sales model is only as durable as the customer behavior it depends on. Avon built an empire on the 'Avon lady' selling door to door, then watched that model fade as shopping moved online.

Aftermath

Avon's bankruptcy in 2024 marked the end of a long decline for a company that had built one of the most recognizable sales models in history. The 'Avon lady' door-to-door model that had defined the company for over a century faded as shopping moved online, and Avon couldn't adapt fast enough. The lesson is durable: a sales model is only as durable as the customer behavior it depends on, and a company that fails to modernize its channel as that behavior changes will decline with it — no matter how iconic the brand or how loyal the customers once were.

Sources

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