Avon UK, the beauty products firm, is set to recruit 20,000 ‘Avon ladies’ as part of the company’s plans to move into financial services.

Jerry McDonald, president of Avon UK, wants to introduce life insurance, motoring cover and credit cards into its product range.

McDonald wants the company to fight back against supermarkets’ increasing retail presence, and plans to increase Avon’s 260,000-strong sales force over the next five years.

The firm’s brand made UK profits of £18.6m in 2003, and is second only to Boots in cosmetic sales.