By Elisabeth King
The deal was finalised in September, 2016 says Tracey Raso, Regional Managing Director for Revlon ANZ, and rounds out Revlon’s makeup-dominated portfolio with Arden’s fragrances and skincare. “This new diversified portfolio is sold in 150 countries across the major distribution channels - mass, salon, prestige and e-commerce. We now have some of the world’s most iconic and desired brands and offerings across all of the most significant beauty categories - colour cosmetics, skin care, hair care, hair colour and fragrance. A powerhouse stable including Revlon, Elizabeth Arden, Revlon ColorSilk, Revlon Professional, American Crew, Almay, Cutex, Elizabeth Taylor, Christina Aguilera, Juicy Couture, Britney Spears and John Varvatos”.
The Arden acquisition was only the latest in a series of buyouts designed to build one of the world’s leading global beauty players. The company bought the Colomer Group for US$660 million in 2013, an investment which accessed the professional beauty market and the CND nail and American Crew men’s haircare brands. Two years later, Revlon bought CBBeauty, the UK-based distributor and maker of One Direction fragrances. The company’s already considerable strength in the nail category was extended in mid-2016 by the acquisition of Cutex from Coty.
The payoff is already clear. Revlon released its full year results for 2016 in early March and the company delivered growth across all segments. Net sales for the combined Revlon consumer and professional divisions were US$2.3 billion - a 21.9 per cent increase on 2015. Elizabeth Arden enjoyed net sales of US$441 million, a spike of 1.8 per cent over 2015.
According to Fabian Garcia, President and CEO of Revlon: “I am encouraged by the progress we have made since the acquisition of Elizabeth Arden and enthusiastic about the opportunities presented by our newly combined company’s enhanced portfolio of brands, size, scale, profitability and international growth momentum”.
We are poised for robust growth in 2017, says Raso. “The company recently announced a new global brand-centric structure, built around four global brand teams - Revlon, Elizabeth Arden, Fragrances and Portfolio brands - designed to optimise and focus on building brand equity and delighting beauty consumers”.
From a corporate point of view, the new model aligns organisation resources and enables us to leverage the strength of our iconic brands, so we can quickly adapt to changing consumer buying and shopping behaviour, says Raso. “For the consumer, this means that we will be able to deliver a consistent, seamless and exceptional brand experience wherever and however our consumers shop for beauty”.
Revlon has also inaugurated a new, customer-facing regional structure that will also boost worldwide sales and brand presence in five main geographical markets: North America; Europe, Middle East and Africa; Asia; Latin America; and the Pacific, including Australia and New Zealand. In her new role of Regional Managing Director Revlon ANZ, Raso is responsible for the Revlon and Elizabeth Arden businesses across both countries. “In this region, we will be operating as a combined organisation with two iconic beauty brands and a clear growth agenda for 2017 and beyond”, she notes.
Revlon Australia is performing very well in an exceptionally competitive beauty space, says Raso. “We hold a very strong market share position across numerous channels. Revlon Ultra HD Matte Lipstick was the number one cosmetics launch in the category in 2016, and Revlon achieved number one status for editorial value and mentions through our PR strategy. We also launched a locally-produced contour kit. The first time Revlon has developed, produced and designed a product in Australia for the ANZ market”.
International analysts predict that if Revlon’s new strategy continues to pay off, the company’s global share of the colour cosmetic market will increase to 5.5 per cent. “The outlook is that the retailer and competitive dynamic will increase in intensity, so our marketing strategies and innovation need to continually adapt to our consumer as she changes the way she shops for beauty”, says Raso. “We will continue to deliver on-trend innovation such as the new Revlon Ultra HD Gel Lip Color to build on the success of Ultra HD Matte in 2016. With high-definition, ultra-smooth colour and intense hydration, it’s guaranteed to be a major success from its on-counter.