Natura`s Acquisition of Avon Products

For years, Avon had been struggling to keep pace with the changes in consumer tastes and habits, and also faced competition from online beauty companies. Though the company had pioneered the direct-selling modal in cosmetics supported by Avon Lady sellers, it continued losing market share to rivals such as Sephora, Estée Lauder Companies Inc., and L’Oréal. While the competitors managed to attract new younger customers, Avon failed to make itself relevant to younger customers, consistently losing ground to rapidly changing personal-care trends and start-ups. The company’s business suffered even in its biggest market, Brazil, where it made nearly a quarter of sales, due to a weak economy and stiff competition from Natura...