Businessweek

Avon Products, Inc. operates as a manufacturer and marketer of beauty and related products worldwide. Products The company’s product categories include beauty, fashion, and home. Beauty consists of color cosmetics, fragrances, skin care, and personal care. Fashion consists of fashion jewelry, watches, apparel, footwear, accessories, and children’s products. Home consists of gift and decorative products, housewares, entertainment and leisure products, children’s products, and nutritional products. Distribution The company has sales operations in 65 countries and territories, including the United States, and distributes its products in 43 other countries and territories. The company’s commercial business units are located in Latin America; Europe, the Middle East, and Africa; North America; and the Asia Pacific. The company primarily sells its products to the consumer through the direct-selling channel by approximately 6 million active independent representatives, such as independent contractors. In the United States and certain other markets, the company also markets its products through consumer Websites (www.avon.com in the United States). Trademarks and Patents The company protects its Avon name and other major proprietary trademarks through registration of these trademarks in the markets where it sells its products, monitoring the markets for infringement of such trademarks by others, and by taking appropriate steps to stop any infringing activities. Seasonal Nature of Business The company’s sales and earnings have a seasonal pattern characteristic of various companies selling beauty, gift and decorative products, apparel, and fashion jewelry. Holiday sales cause a sales peak in the fourth quarter of the year (year ending December 2012). Research and Product Development Activities In 2012, the company’s product launches included Anew Clinical Pro Line Eraser Treatment, Anew Genics Eye Treatment, Anew Ultimate 7S (Night Cream, Elixir, Day Cream), Solutions Cellu-Defy Intensive Anti-Cellulite Lotion, Advance Techniques 360 Nourish Moroccan Argan Oil Leave-In Treatment, Skin So Soft Soft Indulgences Collection, Moisture Therapy Calming Relief Balm, Shine Attract Lipstick, Super Drama Mascara, NailWear Pro+ Nail Enamel, MagiX Cashmere Advanced Liquid Foundation, Infinite Moment Fragrance, Viva by Fergie Fragrance, and City Rush (Unplugged) Fragrance. The company’s amounts incurred on research activities relating to the development of new products and the improvement of existing products was $75.2 in 2012. This research included the activities of product research and development and package design and development. Majority of these activities were related to the design and development of beauty products. History Avon Products, Inc. was founded in 1886. The company was incorporated in the state of New York in 1916.