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Johnson & Johnson Message Board

ob1kinob 6 posts  |  Last Activity: Apr 8, 2014 9:43 AM Member since: Nov 4, 2011
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  • ob1kinob ob1kinob Apr 8, 2014 9:43 AM Flag

    Oh and I forgot, the negative cash flow from continuing operations which means that by running the business they loose money.

  • ob1kinob ob1kinob Apr 8, 2014 9:41 AM Flag

    You're kidding right? NA down down digits again. LATAM the primary market for growth and profits down. EU down. China WAY down with a "10 years before profitable" forcast noted. Canadian business wrecked by a $100 MM+ SMT software debacle now trashcanned. FCPA looking like a $130 MM fine but still TBD. Just to name a few ....

  • Reply to

    Carl Icahn interested in AVON ?

    by davidsonisaackson Mar 29, 2014 7:14 PM
    ob1kinob ob1kinob Mar 31, 2014 11:21 AM Flag

    We can only hope. But, Avon is not Herbalife.

  • Reply to

    No great insight, but neither am I spam

    by umukk Mar 12, 2014 1:56 PM
    ob1kinob ob1kinob Mar 13, 2014 10:13 AM Flag

    Your story does not quite ring true as representatives are SELF EMPLOYED and are NOT Avon employees. It would be possible that after a long period of inactivity her status was inactivated as would be the case for any other business. That said, attrition in developed markets is a huge issue as consumers have so many instant gratification options on every corner versus spending the time to order and then waiting 1 to 2 weeks to get a lipstick from a middleman(representative) delivered. Avon beauty has no exclusivity with the product unlike a pampered chef or other exclusive brands. In addition, the commisions a representative earns on beauty is a large (30 - 40%) but the base value is small ( $1 - $5) whereas the commision on nonbeauty is only 20% but the base value is large ($10 - $30). It can be a hobby but since the vast vast majority earn well below minimum wage for the effort, that's all it is when trying to compete with instant retail.They try to keep them happy with new product churn and better "service" (read product availability) but these are diametrically opposed concepts the latter of which Avon has never achieved success with, In addition Supply Chain ruined the order experience years ago by implementing auto order picking with NO DUNNAGE in the box so that everything gets damaged in shipment. Why waste 50 cents on an expensive cologne carton only to crush and scratch it up in shipment? It is just all wrong.

  • They have just signed to develop and represent the Korres brand in LATAM. Korres just ended a partnership with J&J at yearend. So these prior J&J execs think the J&J model of representing a skincare brand is a path to success. What they will learn is that the Avon model is not about and cannot build big skincare branding. This is because their primary consumer is poor relatively speaking, and the campaign churn holds interest in nothing cosmetic for more than a year at best. The constant need for more newness every two weeks is driven by the representative's need to generate sales and not by consumer pull demand. That is the vicious paradigm that Avon must solve.

JNJ
98.96+0.21(+0.21%)Apr 17 4:00 PMEDT

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