Avon’s Leading Lady
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Each year Fortune magazine publishes its list of the top 500 U.S. companies ranked according to reported gross revenues. In the highly competitive world of business, the CEO’s of these companies are responsible for making decisions that allow a company into this elite group and remain on the list year after year. Avon Products Inc. first appeared on the Fortune 500 list in 1955 inaugural year, ranked at number 455. Over the years, Avon has moved up and down the list of 500 managing to remain there since its first appearance as a top grossing corporation. In the mid 1990’s the company was on the verge of falling back to its 1955 ranking. Hired as Avon’s first female CEO in 1999, Ms. Andrea Jung, one of only 10 female CEO’s listed on the 2006 Fortune 500 list; led the overhaul of Avon Products Inc. and brought the company from number 308 in 1999 to number 281 on the recently published 2006 list.
Born in Toronto Canada to first generation Chinese immigrants in 1959, Andrea Jung credits part of her success to her family upbringing. Raised with traditional Chinese values and parents who placed an emphasis on education, Ms. Jung excelled in most of her endeavors. Growing up in Wellesley, Massachusetts, Ms. Jung flourished by earning top grades in academics, excelling in piano, and becoming fluent in Mandarin Chinese. Her formal education was completed in 1979 after graduating magna cum laude from Princeton University with a bachelor’s in English Literature. Ms. Jung has two children. A nine year old son she adopted with former husband Michael Gould and a seventeen year old daughter from a previous marriage. When her busy schedule allows, Ms. Jung frequently plays the piano as a way to relax. Her favorite piece of jewelry, a white pearl choker, has become one of her fashion trademarks. On a fun note, Ms. Jung was presented with a Barbie custom made by Mattel in recognition for her efforts in a cross promotional project between Avon and the toymaker. The Barbie features Ms. Jung’s likeness complete with long black hair, dark pantsuit, and of course, a pearl choker.
Upon graduation, Ms. Jung entered the management training program at Bloomingdale’s and quickly rose through the ranks to vice president and merchandising manager by the age of 26. After Bloomingdale’s she held senior merchandising positions with J.W. Robinson’s and I. Magnin. In 1991 Ms. Jung joined Neiman Marcus as the executive vice president in charge of all women’s apparel until 1994. During her tenure in the retail fashion industry Andrea Jung gained valuable insight into the corporate world and several notable allies. Among which are fashion designer Donna Karan, Vogue publisher Anne Sutherland Fuchs, and Bloomingdale CEO Michael Gould.
In 1993 Avon CEO Jim Preston brought Ms. Jung in as a strategy consultant to help bring Avon’s products into department stores. Her recommendation was for Avon to abandon the plan to enter the over crowded department store shelves and instead focus on updating its image and sticking with the direct sale strategy. Ms. Jung’s solid recommendations lead to her permanent appointment as president of product marketing for Avon in 1994. “In one of her first contributions to the company, she unified Avon’s assortment of disparate regional brands into powerful global lines like Avon Color.” (Halpern 2006) With the support of Jim Preston and her high visibility with senior management Ms. Jung quickly rose to head of global marketing in 1996 at the young age of 37. A bold choice by Avon’s leadership since Ms. Jung had very limited experience in foreign markets. Capitalizing on her insight into different cultures she focused on public-relations and expanded Avon’s global lines and presence in new countries. Two years later in 1997, the board of directors promoted Ms. Jung to Chief Operating Officer and hired Charles Perrin as the new Avon CEO. It was the hiring of Mr. Perrin that proved disastrous for Avon. In 1999, Mr. Perrin resigned his position after a 50 percent loss in Avon’s shares. “With little operating experience, Jung was not the obvious choice to run a company with millions of independent sales reps and operations in 137 countries.” (Halpern 2006) However, with her innovative track record, the Avon board of directors announced its appointment of Andrea Jung as the ninth president and CEO of Avon. She would be the first woman to hold that position in the company’s 118 year history.
From her first year as the new CEO, Ms. Jung has led Avon into the 21st century with a new direction in strategy and marketing. “As CEO she quickly established her goal to resuscitate Avon’s old-world image with a reorganization that would make Avon the one-stop shopping center for the modern woman.” (Halpern 2006) One of her first moves was to bring Avon out onto the World Wide Web and into shopping mall kiosks. A major