Credit cards from Avon?
co-branded credit card. The company's innitiative is set to cause a
ripple throughout the whole industry sector as companies strive to
stay ahead in an increasingly competitive and saturated market.
Bank One, which issues co-branded cards across America that allow customers to charge their way to everything from free Disney trips to coffee, said it is to offer another card to beauty giant Avon Products.
The card, that is the first that allows users to earn beauty products for charging, is to offer a $25 Avon gift certificate for every $2,500 charged to the card. The first purchase made will also reward the customer an Avon moisturizer worth $25.
After signing up Starbucks earlier this year, Bank One reported the opening of 895,000 accounts by the end of its third quarter. The bank which makes about a third of its total profit from cards generated $285 million this year alone by offering co-branded visa's and mastercards.
Another part of the innitiative is that Avon's salespeople will also be given $25 for every customer they sign up for a card. With 600,000 salespeople across the US alone the new deal looks equally profitable for both the customers and those driving the sales of the beauty products.
The news of the venture comes as Avon posts its fourth quarter results.Sales in the United States were somewhat below Avon's earlier projections this year, due to promotions on fragrance brands and its inability to keep up with demand for gift items and home decorations. It is hoped by Avon that its dealings with Bank One will push profits.