Beauty giant Avon faces criticism over its relationship with Russia

Beauty giant Avon has come under fire for maintaining ties with Russia despite the ongoing war in Ukraine.

The BBC revealed that the company is still recruiting new distributors in the country and continuing production at its huge factory in the Moscow region.

UK-based Avon started operations in Russia 30 years ago.

The company said it was providing “critical support” to women who depend on the business for their livelihoods.

The 137-year-old company is best known for its door-to-door salespeople who demonstrate first-hand how to use its cosmetics, perfumes and creams.

But the company has undergone a transformation in recent years, with a renewed focus on brick-and-mortar stores and social media sales.

“We believe that restricting access to our products will have a significant impact on local women and children,” the group said.

However, the BBC revealed that it is still possible to register as a new distributor for the company in Russia, and that new employees will be offered prizes, cash bonuses and even time off if they reach their goals.

The website offers Russian citizens over 18 years of age access to “iconic high-quality products” and the extras they may get by creating “their own life” as a beauty professional. Explaining income.

After registering online, the BBC received a welcome email with the opportunity to launch the 'Easy Start' sales program and contact details for a local coordinator.

A YouTube video published on Avon Russia's account to celebrate its 30th anniversary shows senior managers attending an award ceremony, social media management training and a trip abroad as a reward for top sellers registered in the “Star Club”. It explains how to increase sales. ”.

An Avon spokesperson said: “Avon Russia supports women in Russia through locally-funded activities that support social selling businesses.

“We believe this is an important support for women whose livelihoods depend on Avon businesses.”

Russia is said to be an important market for major beauty companies.

Stephen Tian, ​​part of a team of Yale University researchers tracking what companies have done in response to the Ukraine war, said the company should be “ashamed” for continuing to operate in Russia. Ta.

“There is no excuse for continuing to fund President Putin’s war machine…and [there] “Enough time has passed for companies to exit in an orderly manner,” he said.

Mark Dixon, founder of the Moral Rating Agency, which campaigns against companies operating in Russia, accused Avon of continuing to operate some operations in the country as a “moral baptism”. Its parent company, Natura & Co., said it “expresses its concern for all those affected by this.” Ukraine's website calls it an “unacceptable invasion.”

Dixon called on Ukraine to ban Avon from operating in the country and for “a legion of Avon representatives” and consumers to “take a firm stand.”

“How can [Avon] Do companies in good faith sell products to women and children that are supporting the economy behind President Putin's invasion of Ukraine? he asked.

The company started its operations in Russia in the early 1990s and has enjoyed great success there ever since.

According to Avon's Russian website, it is the country's number one perfume brand.

The company opened its Naro-Fominsk factory in the Moscow region in 2004 and produces more than 220 types of cosmetics and perfumes. Since its opening, more than 2.5 billion units have been manufactured there.

Avon told the BBC that its Naro-Fominsk factory currently exclusively supplies the Russian market.

At the outset of the Ukraine war, the company told Interfax that it was considering moving production for the Eastern European market from Naro-Fominsk to Poland, and that promise appears to have been fulfilled.

In late October last year, a person placed an order with Russia's Avon and found that three of the four products he received were produced at the Naro-Fominsk plant and one was made in Poland.

One official also placed an order locally with Avon Ukraine to confirm whether exports from Russia had indeed been stopped. Five items previously known to be produced at the Naro-Fominsk factory near Moscow were ordered, all marked as made in Poland.

Natura & Co. has said in the past that there is “no economic advantage” for the company to be in Russia.

In the latest update for investors, In the three months to the end of November, Avon International's sales fell 11.8% year-on-year to 1.73 billion Brazilian reals (276 million pounds), according to Natura & Company.

The company was founded in the United States in 1886 by David McConnell, who created his own fragrance formulations in a small New York office.

Natura & Company's acquisition of Avon in 2020 was seen as a landmark deal creating the world's fourth-largest cosmetics group.

But just recently, the Brazilian company announced it would sell beauty brand The Body Shop for £207m “to simplify and refocus the business”.

Under Natura & Co's ownership, the retailer redesigned its stores and introduced a refill service, but failed to turn its finances around.