Revlon Inc. - Failure Case Study

Revlon Inc. - Failure Case Study

Summary

This report is part of GlobalData's Success and Failures case study series which explores the reasons underpinning success or failure, and key learnings. Recognized widely across the globe, Revlon, Inc. has established a strong presence in the cosmetics and toiletries industry. This study looks at the failure of Revlon, Inc. in its current form and what key the future holds for the firm after its bankruptcy filing.

Founded in 1932, Revlon, Inc. is a leading global beauty company with a broad portfolio of well-established brands which operate predominantly across the make-up, haircare, fragrance, and skincare sectors. Revlon, Inc. was experiencing financial challenges which only intensified due to the pandemic as it faced supply chain disruption and rising raw material costs. It cited these factors as inhibiting its ability to meet customer orders. Changes in consumer behavior have also compounded the logistical challenges which persist due to the pandemic. Revlon, Inc. has the option to overhaul its business operations but the prospect of a buyout or the acquisition of some of its brands by a third party is also possible.

Scope

• Revlon experienced a 9.5% decline in global value sales over 2018-2020.
• Elizabeth Arden and American Crew are potential acquisition targets.

• Use GlobalData's selection of successful and failed product launches and marketing campaigns from across the globe to inspire innovation.
• Reduce the risk of failure by learning from brands/products that have under-performed: failed innovation can severely impact profit and reputation.
• Understand the relevant consumer trends and attitudes that drive and support innovation success.