Avon has a strong market position, being most often used brand in most beauty care related categories (Source: SNA Focus Data). Despite being successful, its business model of direct selling through representatives came to its maturity (key selling measures - representatives access, brochure contact, purchase – were decreasing vs. 2013 – Source: Avon Yearly Reporting) requiring a new strategy of increasing consumers’ base.
To address this challenge, at the end of 2013 Avon launched its e-commerce shop www.avon.ro. However, almost one year after the launch, results were seriously lagging behind objectives, mainly driven by Romanians’ limited propensity towards cosmetics e-shopping (only 4% of Romanian consumers are purchasing cosmetics from an on line cosmetics retailer, based on the data from Google Consumer Barometer 2014).
In this context, at the end of 2014 Avon was facing two major challenges:
1. Overcome the fact that purchasing cosmetics on line is not a common behavior for Romanian on line users.
2. Achieve 2014 e-commerce sales target, being pressured to recover in Q4 the undelivered objectives from Q1-Q3.
In brief, the objectives we were asked to deliver against were:
Business: in order to recover the sales objective gap vs. previous quarters: double net sales from www.avon.ro in Q4 vs. average Q1 - Q3 (client data) and deliver the sales goal for the entire 2014.
Behavioral: in order to increase consumer base, double the number of new customers in Q4 vs. average Q1-Q3 (client data, Google Analytics)
Media: in order to recover the sales objective gap vs. previous quarters, double the conversion rate from unique visitors to orders in Q4 vs. average Q1 - Q3 (client data, Google Analytics) and ensure that at least 50% of Black Friday orders are coming from media campaign (Campaign Media Report based on Facebook, Google & Gemius data)
General Information:
Strategy: In 2014 online shopping started to shift from male dominated phenomenon (IT&C driven), to a more balanced share of men vs women e-shoppers. The trend was fueled by clothing e-retail, with 2014 being first year when clothing overtook IT&C as number of orders (Source: Daedalus Millward Brown e-commerce study, February 2014).
However, cosmetic shopping was still made mainly off line and we needed a strong boost to change our target audience behavior, determining them to buy Avon cosmetics online.
As Black Friday is THE most important and expected e-shopping moment of the year, with increasing awareness from year to year (in 2013 the awareness of Black Friday increased with 80% vs. 2012 and 57% of those aware intended to buy something - Source: Black Friday study prepared by Daedalus Millward Brown for Emag in 2013), it looked as the best trigger to generate the impulse buying needed to convert women to online cosmetics' buyers. One single initial order would turn them into new e-customers, which could be later on re-marketed for retention and repeated purchases on line.
In 2013 most of Black Friday purchases focused on home appliances (44%), IT&C (30%) and electronics (24.3%) (Source: Black Friday study prepared by Daedalus Millward Brown for Emag in 2013).
Avon recognized both the opportunity of being the first cosmetics e-commerce website embracing Black Friday as well as the challenge of being relevant in a clutter of durables and high value goods promotional offers and decided to embark on this bold attempt, as its last chance in the year to deliver on the undertaken e-sales objective.
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