REVLON INC.

2015

Presented By : Sumit, Madhav, Palvi

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AGENDA
Introduction & History
Internal Issues
Competitors
External Issues
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COMPETITORS

The beauty products business contains over 3,000 different

competitors with the companies being Procter & gamble, Unilever,
Loreal, Estee launder, mary kay, Avon and many other.

The industry is comprised of many different classes of competitors.

REVLON REVENUE 4
REVLON INCOME
STATEMENT
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COMPARISON WITH AVON 6

AND LOREAL
 ESTEE LAUDER 7

COMPANIES
Headquarter:- New York
Employees:- 40,000
Sales:- 10.9 billion us dollar
Company known for :- skincare product, makeup, fragrances,
hair care products and many other beauty related product.

Product are considered premium and of better quality.

Aggressively expanding into the men skincare business.

 EXTERNAL ISSUES
LIPSTICK INDUSTRY:
• Valued at $1.5 billion annually in the US, with a projected annual growth rate of nearly 6% through 2020.
• Dominated by key producers such as estee lauder, Procter & Gamble, Revlon, and L'Oréal.
• Despite being a visible cosmetic product, lipstick's revenue pales in comparison to the overall $50 billion
cosmetic industry.
• Resistant to economic downturns compared to other industries.- Intense competition with numerous
manufacturers introducing new styles and colors.
• Increased consumer sensitivity to harsh metals, chemicals, or animal byproducts in lipstick, leading to
higher R&D and marketing budgets.
• Reduced brand loyalty with consumers switching brands frequently.
• Celebrity influence through makeup-free posts on social media.
• Two main categories: sheer and matte lipstick, each equally popular.
• Sales channels include mass merchants, department stores, direct-to-consumer, wholesalers, and imports,
with France being a significant contributor.
HAIR CARE, SKIN CARE, AND COSMETICS INDUSTRY:

• Over $55 billion in annual sales in the United States with a growth rate of nearly 4%.
• Hair care and skin care are the largest revenue contributors, each accounting for
approximately $13 billion, almost 50% of total industry revenue.
• Cosmetics, perfumes, and deodorants collectively contribute significant market shares.
• Similar challenges to the lipstick industry, including higher marketing and R&D
expenses, consumer switching behavior, and concerns for product safety and packaging.
• Growing influx of imported products from various countries, with perceived higher
quality products imported from Europe.
• Hair care products include hair dye, shampoos, conditioners, etc., with slower growth
compared to other segments due to skepticism over expensive shampoos and changes in
hair coloring habits.
• Skin care products experiencing growth in demand, including anti-aging treatments and
sunscreen, with potential for men's skincare products to outpace overall industry growth.
• Makeup, perfumes, and other products make up the remaining 50% of industry revenue,
with moderate growth opportunities in chemical-free makeup and men's colognes.
 NO MAKEUP TREND:

• Growing trend promoted by online articles and celebrities,

encouraging women to embrace natural appearance.
• No clear data on popularity or longevity of the trend.-
Supporters advocate for comfort in one's own skin and
deemphasize the use of makeup.
• Theories suggest motivations ranging from emphasizing
natural beauty to laziness.
• Impact on cosmetic firms currently limited but worth
monitoring as it aligns with changing consumer preferences.
 FUTURE:

• Ownership: MacAndrews & Forbes Inc. owns 78% of Revlon, with rumors
of a potential sale.
• Financial Performance: Revlon's EBIT margins are good at 19%, but
market capitalization to EBIT ratio is low compared to peers.
• Potential Buyers: Global consumer companies like Procter & Gamble,
L'Oréal, Unilever, and Coty Inc. are potential suitors.

Strategic Plan:
• Enhance EBIT margins through operational efficiencies and cost optimization.

• Develop synergies with potential buyers, such as P&G's CoverGirl business.

• Focus on increasing revenues through product innovation, market expansion,
and strategic partnerships.
• Strengthen brand positioning and marketing strategies to increase market
share.
• Ensure a clear strategic vision to demonstrate expected increases in both
revenues and profits.
• Prioritize shareholder value by obtaining the highest acquisition price through
a well-executed strategic plan.
THANK
YOU