Avon exited Indonesia after 30 years — the 'Avon lady' couldn't compete there

Avon Products, the 134-year-old American direct-selling cosmetics company, announced in January 2020 that it would exit Indonesia, ending operations in Southeast Asia's largest economy after more than 30 years. The decision came just days after Brazil's Natura &Co completed its acquisition of Avon on January 3, 2020, making the combined company the world's fourth-largest pure-play beauty group.

Indonesia was a challenging market for Avon's door-to-door direct-selling model. The country's vast archipelago made distribution expensive, and local competitors — both traditional cosmetics brands and newer digital-native players — had stronger consumer recognition. The rise of e-commerce and social media-based selling had eroded the relevance of the 'Avon lady' model, which depended on personal relationships and in-home visits.

Avon said the exit was part of its 'Open Up Avon' global restructuring plan, which involved reviewing all markets and prioritizing investment where the company could achieve sustainable growth. The company had already exited Vietnam in 2017 and would continue to operate in other Asian markets including the Philippines, Malaysia, Thailand, India, China, and Japan. The Indonesia exit was completed by mid-2020.