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Avon Teams Up With HCL Technologies to Boost Digital Growth

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Avon Products, Inc. recently announced its partnership with HCL Technologies. Following the deal, HCL Technologies will serve Avon’s infrastructure services partner. In sync with its 'Open Up Avon' strategy, this latest agreement marks an important step toward digitalization of the company’s business.

Leading global technology company, HCL Technologies, is expected to support Avon in revamping its IT infrastructure services and systems to enhance quality, scope, and efficiency. These activities also cover data centres, network, security and end-user computing services along with service desk. In fact, this technology leader will employ state-of-the-art service-management equipments in order to build Avon's infrastructure services more efficient and agile.  

Moreover, the latest agreement includes HCL's Mode 1-2-3 vision, hence will drive automation, cloud, standardization and service to produce impressive business results and end-user experience. This will also help the beauty leader to generate cost savings by improved service levels and capabilities for Avon's Representatives worldwide.

Meanwhile, the company remains on track with the 'Open Up Avon' strategy, which is aimed at bringing Avon back to the growth trajectory. This strategy mainly focuses on reviving its direct selling business, renovating the brand, enhancing e-commerce and other capabilities to aid a performance-driven transformation.

Impressively, Avon is capitalizing on the growth opportunities in the fast-growing e-commerce realm, making this platform a major growth driver. The company also remains committed to improve digital tools and e-commerce channel for driving sales and Representative experience. To this end, it created dedicated e-commerce business units in all key markets during fourth-quarter 2018. This helped Avon in steadily expanding the percentage of sales.

While My Avon e-commerce store is present in about 25 markets, digital Avon brochure is now available in all markets and reached 6 million page views. Further, conversion rates expanded from 2.5% to 4%. In 2019, the company targets doubling e-commerce sales.



Price Performance

Backed by these positive endeavors, shares of this Zacks Rank #1 (Strong Buy) stock have surged 43.1% in the past three months, comfortably outperforming the industry’s 11.4% rally. You can see the complete list of today’s Zacks #1 Rank stocks here.

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The Estee Lauder Companies Inc. (EL - Free Report) delivered positive earnings surprise in each of the trailing four quarters, the average being 14.2%. The company carries a Zacks Rank #2 (Buy).

Helen of Troy Limited (HELE - Free Report) is also a Zacks Rank #2 stock, which delivered average positive earnings surprise of 15.9% in the last four quarters.

Medifast, Inc. (MED - Free Report) delivered average positive earnings surprise of 9.1% in the last four quarters. The company carries a Zacks Rank of 2.

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