Why This Traditional Cosmetic Giant Might Be In Trouble

The high level beauty industry is one of the most competitive and challenging segments of the personal care market segment. As such, firms like Estee Lauder Companies Inc. (EL), The Procter & Gamble Company (PG) and Sally Beauty Holdings Inc. (SBH) are under constant pressure to override their competitors.

Avon Products Inc. (AVP) is no stranger to this scenario, with over 100 years of trajectory in the cosmetics industry. The multilevel marketing company is the world’s largest direct seller of female products, with 6 million active representatives in over 65 countries worldwide.

The sales combination of beauty, fashion and home goods has helped this company establish itself domestically and internationally as a strong market competitor. However, the last few years have put a strong halt on the company’s profitability and management changes have shifted gears on this beauty firm’s route, causing investment guru Ray Dalio (Trades,Portfolio) to sell out his shares.

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