PROPOSAL

Revlon
Revlon make up in the USA
US7615256093
Module N1079
Student number: 234904
15/02/2023
Word count: 515

Contents:
1-Revlon industry and its competitors
2-Problems faced by Revlon
3-Research plan

Revlon, the world's most well-known cosmetics brand, was established in the United States
in 1982 and has its corporate headquarters there. Throughout 150 nations around the world

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purchase Revlon's cosmetics through salon, mass, and direct-to-consumer retail distribution
channels. The COVID-19 pandemic-related closures and escalating competition have caused
the corporation to experience debilitating debt and a significant drop in revenues in recent
years. Due to distribution issues and product shortages brought on by the popularity of
companies like Estee Lauder and Kiko Milano, Revlon filed for Chapter 11 bankruptcy
protection in an effort to advantageously restructure its operations.

Year Revenue of Industry Revenue of Revlon Market Share %

2018 $51.55 billion $2.56 billion 4.96%

2020 $44.75 billion $1.90 billion 4.24%

2022 $49 billion $2.00 billion 4.08%

Figure 1.1 Market share of Revlon in cosmetic industry from in years 2018, 2020 and 2022

Market share 2018 2020 2022

Estee Lauder 26.5% 31.93% 36.20%
Kiko Milano 0.001% 0.08% 0.10%

L’Oreal 4.41% 6.72% 36.20%

Figure 1.2 Market share of Revlon’s competitors

2018 2020 2022

Figure 2.1 Pie chart for Estee Lauder

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 market share

2020 2022 2018

Figure 2.2 Pie chart for L’Oreal

market share

2018 2020 2022

Figure 2.3 Pie chart for Kiko Milano

Since 2018, Revlon has slowly lost market share in the US, but the pandemic added to the
company's already pressing financial problems. According to Global Data’s projections,
Revlon's value share of the US cosmetics market dropped from 2.6% in 2018 to 2.1% in
2021. Due to interruptions in its supply chain network, rising prices, and its $3.5 billion debt
burden, Revlon was unable to pay crucial suppliers in its cosmetics supply chain on time. As
a result, it was forced to file for bankruptcy.
The failure of Revlon to follow then prevalent trends was another major factor in the
company's collapse. According to industry analysts, Revlon failed to adapt to shifting
preferences and lagged behind women as they switched from bright red lipstick to more
subdued tones in the 1990s. The pandemic made Revlon's issues worse and reduced lipstick
sales as individuals used masks. Sales decreased by 21% in 2020 to $1.9 billion.  Sales
recovered in 2022 to 9.2% to $2.09bn but was still quite less as compared to pre-pandemic
levels. 
Thirdly, traditional companies like Revlon now have celebrity-backed rivals like Fenty Beauty
and Kylie Cosmetics. Additionally, it is becoming easier and easier to promote a beauty
brand as well as to start one. Influencers of all levels may contact customers in novel ways
thanks to platforms like TikTok and Instagram. This presents stiff competition for more
mainstream cosmetics businesses like Revlon. Due to its financial difficulties, Revlon has
likely been unable to spend in advertising and technologies that consider shifting customer
preferences.

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Lastly, foot traffic in malls surpassed pre-pandemic levels in July 2021 for the first time since
2019, the emergence of internet merchants and changes in customer tastes over the last
ten years have obliterated what was once the norm in American shopping. These buying
inclinations are sure to be felt by companies like Revlon, whose goods are sold at stores like
Bed Bath & Beyond and Walmart.

Figure 3.1

The above gantt charts shows the ways Revlon can increase their market share in the USA.
To attract customer impulsive buying and innovate in line with trends while preserving its
pricing positioning, Revlon has to first concentrate more of its advertising strategies on
TikTok, it can do this by doing a detailed SWOT and PESTLE analysis. Revlon should
incorporate capabilities like virtual try-on technology. A sector known for its high level of
touch may find it especially advantageous to provide AR alternatives. Additionally, they
want to make investments in cutting-edge fields like blockchain, robots, and virtual reality.
Revlon also needs to train employees and set a new direction for itself.

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APPENDIX:
Below is a detailed SWOT analysis of Revlon and the industry it’s in.

Strengths Weakness Opportunities Threats

 Revlon has a strong Lack of accurate After years of The current supply
free cash flow, which forecasting of recession and a chain architecture,
gives the firm money product demand sluggish rate of which is dominated
to take on new causes more missed industry by physical
initiatives and chances than its development, the infrastructure, may
develop. rivals. economic recovery be threatened by
and increase in shifting customer
consumer spending purchasing patterns
present Revlon with from online
a chance to gain new channels.
clients and expand
its market share.
A high level of Customers' Revlon has the In the short to
customer preferences and the chance to use a medium term,
satisfaction among way they purchase unique pricing emerging
current customers for cosmetics have approach in the new technologies created
and strong brand evolved as a result of market because to by competitors or
equity among future the explosion of the new technology. market disruptors
customers have specialist cosmetics It will allow the might pose a severe
been attained by the stores and online business to attract challenge to the
firm due to its retailers. A new new clients with sector.
specialized customer approach is various value-
relationship required particularly oriented offerings
management for multinational while retaining its
department. corporations like existing ones with
Revlon. excellent service.
Revlon has  Revlon has to invest Opportunities to A threat to Revlon's
developed more money in engage in adjacent product is replication
competence in technology to unify product sectors arise of poor quality,
breaking into new the processes across from stable free cash counterfeit goods,
markets and the board given the flow. With greater especially in
succeeding there. scope of cash on hand, the developing and low-
The company's development and business may invest income regions.
expansion has the many regions in both new product
helped it develop the firm plans to categories and
new income enter. technological
streams. advancements. This
ought to present
Revlon with an
opening in other
product areas.
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Figure 1.2: SWOT analysis for Revlon US

Figure 1.3: Revlon and its competitors share prices from 2017-2022

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Reference:

 https://www.statista.com/topics/6090/revlon-inc/ -
topicOverview
 https://www.ft.com/content/475c0a97-b26f-4687-a775-
fcc01253d1ba
 https://www.statista.com/topics/1544/loreal/ - editorsPicks
 https://www.fastcompany.com/90761939/revlon-
bankruptcy-why-debt-supply-chain-explained
 https://www.theguardian.com/business/2022/jun/16/revlon-
bankruptcy-us-supply-chain-costs
 https://embapro.com/frontpage/swotcoanalysis/32115-
revlon