Direct Sales Giant Avon Ranked 9th “Most Successful Brand Of 2010”

by johncini on December 21, 2009

Last week the website “24/7 Wall St.” announced “The 10 Most Successful Brands of 2010.”

This list is noteworthy for those of us in direct sales because #9 is Avon (mentioned on this site in a Dec. 1st post, “What Is MLM?“), a direct sales giant with millions of reps and annual revenue of $11 billion, first becoming publicly-traded in way back in 1946.  Sharing this with anyone who is skeptical of the legitimacy of our industry adds immediate credibility to our profession.

The Ten Most Successful Brands Of 2010

Brand measurement is a popular exercise. Several major business magazines run brand value lists. The annual Brand Z and Interbrand lists always get heavy press coverage. Companies are concerned about their rankings and what they will brag to customers, investors, and consumers about how the world sees their products and services. The Tiger Woods fiasco brought up the issue of how much a brand’s value can be undermined by a rapid and negative change in the fortunes of an important endorser.

Most brand valuation analysis focuses on dollar value, sales and earnings momentum, and how much an individual brand helps a company’s market capitalization. 24/7 Wall St. looked at several major systems to determine brand value and the brand lists based on them. We then looked at the future earnings forecasts for those companies and the recent movement in their stock prices to decide which brands should have the most appreciation in their values in 2010. 24/7 used brand valuations from Brand Z and Interbrand to set 2009 values and then made its own adjustments based on anticipated 2010 improvement. Each brand on the 24/7 list is expected to have an increase in value of least 20% next year. This list is restricted to brands based in the US.

In the article, specific details are given to explain the selection of each company, but except for Avon, below we’ve listed just the company name, stock symbol, and “Brand value.”

1. Amazon (NYSE:AMZN) Brand value: $25 billion.
2. BlackBerry (NASDAQ:RIMM) Brand value: $35 billion.
3. Nike (NYSE:NKE) Brand value: $20 billion.
4. Goldman Sachs (NYSE:GS) Brand value: $13 billion.
5. Oracle (NASDAQ:ORCL) Brand value: $26 billion.
6. JPMorgan Chase (NYSE:JPM) Brand value: $15 billion.
7. Google (NYSE:GOOG) Brand value: $140 billion.
8. Ford (NYSE:F) Brand value: $28 billion.
9. Avon‘s (NYSE:AVP) sales were up for the first through the third quarters of 2009. The same was true with operating income. Avon’s stock price has more than doubled off lows. Despite a poor economy, Avon’s revenue was essentially flat in the last quarter at $2.6 billion. Analysts estimate revenue will rise 10% next year to $11.4 billion. EPS should rise from $1.72 to $2.22. Brand value: $14 billion. 10. McDonald’s (NYSE:MCD) Brand value: $75 billion.

From the article’s comment that “Avon’s sales were up for the first through the third quarters of 2009,” you can see a tough economy’s impact on the number of people who seek extra income via network marketing.  There’s never been a better time to promote and grow your company!

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{ 1 comment… read it below or add one }

sandra delaa August 27, 2010 at 3:04 am Thumb up 0 Thumb down 1

This information was insightful as well as helpful. It served to confirm my decision to open my own Avon company.

I want to have an international company, as my husband is from overseas and we have family there. My husband speaks 5 arabic languages as well as fluent French and English. I feel this will benefit us greatly with our company. He also has a degree in Civil Engineering.
For myself, many years of executive secretary background, and a certified teacher assistant degree, will come in handy.

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