US based cosmetics firm Avon Products and Greek brand Korres are teaming up to form a Strategic Alliance in order to expand their respective businesses in Latin America. According the agreement, Avon will exclusively develop, manufacture and market Korres products in Latin America. This long-term strategic alliance includes all major markets where Avon operates in Latin America, and provides Avon the option to purchase all of the intellectual property rights to the Korres products in that region.
I'm very pleased that through this strategic alliance, we can leverage Avon's extensive network and capabilities to bring the Korres brand and products to more women across Latin America," said Sheri McCoy, Chief Executive Officer, Avon Products, Inc.
Latin America is a growing beauty market and is Avon’s largest business unit, accounting for nearly half of the company’s revenues.Latin America is a growing beauty market and of major interest to the Avon portfolio. This strategic alliance will help both Avon and Korres to utilise each others brand name to capture the extensive Latin American market and thus have a win win situation.In 2009, Korres had also entered into a product licensing agreement with Johnson & Johnson, another cosmetics giant, to sell and distribute its products in North America.
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