Avon plans to relaunch in Brazil in 2026 after revenue decline last quarter

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In Latin America, Avon, which completed its merger with Natura in the third quarter, saw sales decline by 17.3% in Brazil. For Ferreira, the numbers reflected the recession in consumption impacting the beauty sector, as well as the transition period between old formats and preparations for new launches.

“We have not yet restarted Avon’s growth. And given its low-priced positioning, Avon is a very important brand in a situation of further contraction in consumption. However, the level of readiness of this brand is low. We are working to relaunch this brand next year, and we are really living in the gap between the old portfolio and the new portfolio that is coming,” he said.

The executive said that starting in 2026, Avon will need to overhaul all of its products and have a more agile operating model that adapts to a new phase of innovation, growth and digitization.

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According to Ana Paula Tozzi of AGR Consultores, the long-delayed integration of Natura and Avon contributed to the larger-than-usual decline in the cosmetics market. The brand will enter 2026 without this weight, increasing its chances of recovering sales.

— The Avon brand has a lower average entry price than Natura, which likely contributed to its better performance this year, so I believe the situation will improve next year. Avon adheres more closely to its direct-to-reseller distribution model and continues to focus on lower-priced, more accessible products.

However, the logic of more affordability does not mean lower prices. Roberto Kanter, business consultant at Idemp Educação Coorporativa, explains that it is wise to focus on this axis, but that quality must be offered at a competitive price.

— Affordable products achieve volume, and volume fixes the revenue curve. If Avon regains the perception that it’s a good purchase by providing solid performance, a reasonable price, and many new features, its range will naturally expand.

Analysts say Avon is a brand with fond memories for Brazilians, so it should capitalize on that, but they also stress that it needs to update itself to connect with a new generation.

— Natura should consider repositioning the brand during reorganization because the brand is outdated. I think next year they will launch a new brand, a more modern campaign. Tozzi stressed that Avon has lost a lot in the past three years and needs to win back new generations out there, such as Gen Z, who don’t know much about Avon.

Kanter said it’s important that the reinvention includes a launch calendar with strategies such as collaborations with other brands and influencers. He also emphasized the need to modernize communication on online platforms, especially social networks, in addition to improving integration between portfolios, digital channels and physical points of sale.