PYMNTS-MonitorEdge-May-2024

Revlon Revs Up New Strategic Growth Plan

In the new year, it seems very fashionable for retailers to re-think global growth. General Mills is investing in kale to sprout growth, Mattel tapped a Google executive for its new CEO and handbag companies like Fendi are leaning on a pompom add-on to spur sales.

Revlon has joined the list of companies announcing plans for driving global growth. The company revealed a new organizational structure — focused on strategy — in attempts to stay competitive in the global beauty industry.

Part of the plan, according to a release, is continuing to expand from just makeup-type beauty products and further include “color cosmetics, skincare, fragrance, hair color and hair care, beauty tools, men’s grooming products, antiperspirant deodorants and other beauty care products.” The $3 billion company currently sells products in 150 countries via a variety of channels.

Part of this restructuring includes, also according to the release, a new brand-centric structure that focuses on four global brand teams: Revlon, Elizabeth Arden, Fragrances and Portfolio Brands. The goal is to optimize and build brand equity while connecting successfully with consumers. There will also be a customer-facing regional structure aimed at five global regions in North America, as well as Europe, the Middle East and Africa; Asia; Latin America; Mexico and Pacific and a reorganization in the departments of line finance, human resources and communications.

Fabian Garcia, president and CEO of Revlon, said the new brand-centric structure enables the company to leverage the strength of its iconic brands and better serve beauty consumers.

As PYMNTS reported in December, more and more, the beauty industry has become ruled by millennials, with women between ages 18 and 34 the main buyers, according to a survey by TABS Analytics. Spending nearly $13 billion in the cosmetics industry, these shoppers do their research predominantly online and then take that knowledge to the stores to make their purchases.

More research from the Harris Poll recently identified how and where (locations and retail sites) cosmetics buyers are purchasing cosmetics. Millennials were found to be most likely to buy items in person from big-box retail stores.

PYMNTS-MonitorEdge-May-2024