This company was created during a severe recession
This company was established on March 1, 1932 in New York, USA. Surprisingly, it started in the period of severe recession (1929-1939) in the world. It was started by two brothers named Charles Revson and Joseph Revson. He was accompanied by a chemist, Cherise Lachman, whose “L” in his name was incorporated into the brand. This is why the company was named Revlon instead of Revson. Revlon has over 15 brands, including Elizabeth Arden and Elizabeth Taylor. They are sold in about 150 countries.
Start with nail polish
Revlon started with nail polish. The three founders of the company together created a special type of nail polish, which consists of pigments instead of dye. Explain that dyes dissolve in water, while pigments are colors that do not dissolve in water. In such a situation, the nail polish made of pigments was not affected by water, and it lasted a long time. People started to like it very much and these three founders started selling Revlon nail polish in all major stores and pharmacies.
The company has become a multi-millionaire in the midst of a severe recession
The Revlon company became a multi-millionaire only during the severe recession. In just 6 years, the company has earned billions of rupees. In 1940, the company offered many nail products. Along with this, it has also made a foray into the lipstick segment. During World War II, the company manufactured makeup and all of its related products for the US military. For this reason, the company also received the Army-Navy “E” award in 1944. By the end of World War II, Revlon had become the second largest cosmetics company in the United States.
The company has attracted all types of customers to it.
In 1960 the company began to focus on several divisions. Through each division, the company has developed a strategy to focus on a different market. The inspiration for this strategy came from Revlon’s General Motors automotive company. Each division created by the company had a different target customer. The top division was Revlon, which is the most popular brand. The second division was created as Elizabeth Arden Inc., which became a cosmetics, skin care and fragrance subsidiary. The third division was created Ultima-2, which became a premium brand. Apart from this, the company has also created the Britney Spears fragrance brand for the fragrance.
The company forged ahead, making one acquisition after another.
Revlon then made several acquisitions and sold a wide variety of products. The company sold shoe polish by acquiring Esquire Shoe Polish in 1969. The company also purchased the brand of toilet cleaner (Ty-D-Bol). The 1967 acquisition of the American Vitamin and Pharmaceutical Corporation made Revlon the market leader in diabetes drugs. In 1970, the company acquired the Mitchum brand, which was followed by the launch of shampoos and conditioners in 1971.
Revlon sold in 1985, IPO in 1996
On November 5, 1985, the Revlon company was sold to the Pantry Pride company for a total of $2.7 billion at $58 per share. Later, the name of this company was changed to Revlon Group Inc. This company is a subsidiary of MacAndrews & Forbes, the company of New York-based billionaire businessman RonALD Perelman. The Revlon Company was listed on the New York Stock Exchange on February 28, 1996. Its IPO price per share was $24.
Corona virus ruined the business
Revlon has also made great strides in new hands, but so has the company’s debt. The Corona pandemic has brought Revlon to its knees. Although the company already incurred a lot of debt before the Corona period, but during the Corona period the company’s struggle intensified even further. The recession started due to the Corona Pandemic and like every recession, this time too, people first started cutting makeup and cosmetics from their spending. As a result, the company’s sales were severely affected. In March this year, Revlon said it was facing supply chain issues due to which it was unable to meet demand.
Demand for cosmetics grew rapidly, but the company suffered losses
According to a Reuters report, the company had $3.31 billion in debt as of mid-March. In recent months, the demand for makeup products has increased again, which has been affected by the confinement restrictions during the Corona period. However, despite growing demand, the company faces challenges from other brands. Due to this, the profits of the company are always hit hard and the losses increase, which will lead to the bankruptcy of the company. Supply chain issues are one of the main reasons why demand is not being met.
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