Sunday, July 25, 2010

Avon Acquires Silpada Designs for $650 Million

Silpada Designs, a sterling silver jewelry Home Party company, has been purchased by Avon for $650 million.

Here's an article about the purchase. Nearly twenty years ago, friends Bonnie Kelly and Teresa Walsh started a small home business helping people put together outfits from their closets. They then started selling costume jewelry, and eventually moved to sterling silver jewelry.

Silpada Designs is one of the Home Parties that I worked for. I have to say, the parties were easy for a Consultant, and I made a surprising amount of money with the parties. Their jewelry is striking, and I still get comments when I wear some of the jewelry that I kept.

As a rule, I am not a fan of Home Party businesses. I don't think that it's a very good business model. However, I will admit that I had the most fun being a Consultant for Silpada Designs. It was fairly easy and profitable, compared to the two other businesses I tried (Creative Memories and Southern Living at Home).

Apparently, Avon plans to keep the Silpada line separate, and let it operate as usual. Silpada's jewlery costs from $12 to $279. Avon does sell costume jewlery, but at a much lower price point (mostly under $25).

Who knew that Avon was doing so well? Apparently, Avon has over $10 billion in annual revenue. I recently saw an Avon catalog. Their items have really changed over the years.

Do any of you work for Silpada or Avon? What do you think about this?

1 comment:

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