Avon Calling! Avon Buys Silpada

Avon, Direct Selling Leader Buys Silpada & Liz Earl

This year Avon bought the fine silver jewelry company Silpada as well as the skin care company Liz Earle. Founded in 1886 as the California Perfume Company. the name change took place in 1939.

Avon, Andrea Jung – Direct Sales Leader

Avon is a long-term success story in direct sales and a trendsetter in the industry. Avon is an internet giant, ranking at number 30 in the Internet Retailer Top 500 Guide, and the largest direct selling business in the world. CEO and Chairman of the board for Avon, Andrea Jung, daughter of Chinese immigrants, has been the driving force in Avon since 1999. She has been ranked as #1 in the Direct Selling Power 50 Awards for 2008 and 2009 and is the 25th most powerful woman in the world, according to Forbes Magazine, 2009. Under Andrea’s guidance, Avon has become one of the top online retailers with an estimate of $739 million in annual sales online as well as one of the top ten most recognized brands worldwide.

Silpada, Home Party Plan Silver Jewelry

Silpada, on the other hand, is a company that exists primarily offline. With about 32,000 consultants, they operate predominately as a party plan business model. Currently, they are one of the fastest growing direct selling jewelry companies.

From what I have read, Avon expects to keep the two companies separate and operate both as stand alone. Silpada does not sell on the internet now and that will not change in the future. Avon perceives Silpada as a success story of its own and has no plans to change the business strategy. Silpada founders Bonnie Kelly and Teresa Walsh and the Silpada business management team will continue to lead the company from their home office in Kansas.

Avon states that the purchase of the UK based company Liz Earl will strengthen the Avon product line with expertise in botanical ingredients and natural-based products.

“Over the past decade, we have watched Silpada build an enviable reputation as a fast-growing, high-quality jewelry brand and one of the most impressive party plan direct selling organizations in the world,” says Andrea Jung, Avon’s chairman and CEO. “This new partnership is an exciting opportunity to reach new consumers and representatives with a higher-tier brand and direct sales model that complements our existing business.”

It is my understanding that the purchase of Silpada was a “cash” purchase by Avon!!

Congratulations to a company who is here for the long term, always one step ahead of the times and booming in a “bad” economy!