Beauty Giant Avon Faces Criticism Over Business Continuation in Russia
Avon, the renowned beauty company, is facing scrutiny for maintaining business operations in Russia despite the ongoing conflict in Ukraine. The BBC investigation has revealed that Avon is actively recruiting new sales agents in Russia and continuing production in a sizable plant located in the Moscow region.
The 137-year-old beauty company, headquartered in the UK, began its operations in Russia three decades ago and has recently come under fire for sustaining ties with the country. Avon, famous for its door-to-door sales representatives demonstrating cosmetics and skincare products, has transformed its business model in recent years, incorporating physical shops and social media sales.
Despite announcing a halt in investment and suspending exports from Russia at the outset of the Ukraine conflict, Avon is still actively engaging with the Russian market. The company’s parent, Brazilian firm Natura & Co, has justified its continued local operations by stating it provides crucial support to sales agents dependent on their business.
The BBC investigation discovered that individuals can still register as new sales agents in Russia, with enticing incentives such as prizes, cash bonuses, and holidays for achieving targets. Avon’s website promotes iconic products and the opportunity for Russian citizens over 18 to create their own beauty business.
While Avon maintains its commitment to supporting women in Russia, critics argue that the company should cease operations in the country due to the conflict in Ukraine. Some accuse Avon of moral-washing by continuing business activities in Russia while expressing concern for the impact of the conflict on its website.
The company, founded in the US in 1886, has a significant presence in Russia, with its Naro-Fominsk plant producing over 220 types of cosmetics and perfumes. Avon has stated that the plant now exclusively serves the Russian market, and it has fulfilled its pledge to relocate production for Eastern European markets from Russia to Poland.
Natura & Co, Avon’s parent company, has reported a decline in Avon International’s sales, citing the impact of the war in Ukraine and a planned decrease in the number of sales representatives as part of a new business model. Despite challenges, Avon’s net worth remains substantial, and the company recently announced plans to open physical stores in the UK.
The ongoing controversy raises questions about the ethical considerations of global companies maintaining business ties in conflict regions and navigating the complex intersection of commerce and geopolitics.
