Avon Products Inc. (AVP), the direct seller of beauty products such as Anew moisturizer, is looking more closely at the way it compensates its U.S., Brazilian and Russian representatives.During a conference call Monday, Avon Chairman and Chief Executive Andrea Jung said the review will focus on all aspects of compensation and incentives, as well as on other factors that impact representative economics and perceived satisfaction.”This analytical work on the representative value proposition is a very high priority for us during the upcoming quarters, and we will have more to say on it later this year,” Jung said.In the latest quarter, sales representative activity in the U.S. weakened from the first quarter.According to Jung, there is a relationship between lower levels of activity and higher fuel prices, particularly among its sales representatives in the U.S. at lower income levels.”While we certainly cannot control the price of gas, we’re looking at a range of other factors that we can control – brochure economics, relooking at fee structures, etcetera,” Jung said.
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