June 15, 2022 (press release) –
Following the news that Revlon is reportedly preparing to file for Chapter 11 bankruptcy;
Lia Neophytou, Senior Consumer Analyst at GlobalData, a leading data and analytics company, offers her view:
“Revlon has gradually lost its US market share since 2018, but the pandemic dealt a further blow to the firm on top of existing financial challenges. GlobalData’s forecasts reveal that Revlon’s value share of the US cosmetics & toiletries industry slumped to 2.1% in 2021 vs 2.6% in 2018.
“Furthermore, its mass-market and affordably priced Revlon beauty brand has faced competition from more trend-led brands leveraging TikTok—a key source of inspiration for beauty and grooming purchases—to entice a younger consumer base. Revlon should have focussed more of its marketing efforts on TikTok to capture impulse spending from shoppers, as well as innovate in accordance with trends while maintaining its price positioning.
“Revlon’s portfolio is mainly comprised of once iconic but now tired fragrance brands including Christina Aguilera Fragrances, Britney Spears Fragrances, and Juicy Couture, which face fierce competition from the likes of The Estee Lauder Companies. The latter saw strong fragrance sales growth in Q3 2022 from its high-end, more contemporary fragrance brands like Jo Malone. Last year, Revlon launched its first new fragrance in six years, but would benefit from modernizing its packaging across its brands and more consistently launching products which align with current consumer trends.”
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