The Hindustan Lever Limited (HLL) is planning to redirect the Aviance range of products on the retail shelves, by phasing out the direct marketing setup. At present Aviance range is available directly to consumers only through trained beauty consultants.
According to the industry sources the company has initiated a move in this direction, however HLL has denied the same. The company has identified premium departmental stores and shopping arcades as places of higher customer frequency. In comparison to the direct marketing channel where the products are now being moved.
The industry sources said that the re-routing of Aviance through the retail end will not be done in one shot. There will be a logical plans that will be executed.
The products from the lower price points will be the first to be redirected to the retail outlets. Subsequently, the process will be applied across the whole category in a slow and deliberate manner.
Aviance was first floated by HLL as a wholly owned direct marketing subsidiary in 1999. The subsidiary has now been merged with HLL. In the calendar year 2000, Aviance has reported a net loss of Rs 12.24 crore as against a loss of Rs 6.89 crore in 1999. Sales in 2000 stood at Rs 7.28 crore, up from Rs 5.81 crore in the previous year.