SWOT ANALYSIS OF
REVLON INC.
Strengths
• Strong dealer community
◦ It has established a culture among distributors and dealers in which dealers not only market the company’s products but also spend in educating
representatives to explain to customers how they may get the most out of the items.
• Excellent Results in New Markets
◦ Revlon has developed competence in entering new markets and making them successful. The expansion has allowed the company to diversify its revenue
streams and reduce economic cycle risk in the markets it serves.
• High customer satisfaction
◦ the company has been able to attain a high level of client satisfaction owing to its specialized customer relationship management department.
• Training programs
◦ Successful training and learning programs have resulted in a highly competent workforce. Revlon devotes significant resources to employee training and
development, resulting in a team that is not just highly skilled but also driven to attain greater success.
• Commitment to charity
◦ Revlon has always put a strong emphasis on giving back to society and communities. Many of their charity activities focus on empowering poor women and
promoting the health and well-being of women throughout the world through free health screenings, mobile cancer screening camps, and other initiatives.
Weakness
• Changes in customer behaviour
◦ The expansion of specialized cosmetics stores and e-commerce sites has altered the way clients shop for cosmetics as well as their
preferences. This shift in consumer behaviour necessitates a shift in approach, particularly for global brands like Revlon.
• Investment in Research and Development
◦ Investment in Research and development is lower than that of the industry’s fastest-growing companies. Despite spending more on
research & development than the industry average, Revlon has been unable to compete in terms of innovation with the industry’s
leading firms. It appears to be a well-established company eager to release products with market-proven characteristics.
• Lack of focus on the younger generation
◦ Revlon has a limited focus on the younger age because their company is geared toward an older and more mature demographic.
However, cosmetic corporations have been acquiring youth brands in recent years to gain the mindshare of a younger audience, which
Revlon has not been able to achieve success.
• Increasing Debt
◦ Revlon has been losing money for the previous five years. Losses that have been steadily increasing have resulted in debts of USD 3
billion.
Opportunities
• Market Potential
◦ The BRIC countries, mainly India and China, are the next largest markets for cosmetics companies. Cosmetics demand is expected to be extremely high in
these regions, with a total market value of USD 15 billion expected to grow at a rate of 22 to 25% in the next five to six years.
• Customers acquired through the Internet channel
◦ The corporation has put a lot of money into the internet platform in the last few years. Revlon has gained access to a new sales channel as a result of its
investment. In the coming years, the corporation can capitalize on this opportunity by better understanding its customers and meeting their demands through
big data analytics.
• Lower inflation rate
◦ A lower inflation rate provides more market stability and allows Revlon consumers to obtain loans at a lower interest rate. After years of recession and a poor
growth rate in the sector, Revlon sees an opportunity to gain new clients and expand its market share.
• Investments in Contiguous Products
◦ The ability to invest in contiguous product sectors is made possible by stable free cash flow. With greater cash on hand, the corporation will be able to invest
in new technologies and product sectors. Revlon should be able to expand into new product categories as a result of this.
Threats
• Chemical content
◦ Users are highly concerned about the chemical content of makeup, prompting them to seek out natural or mineral cosmetics. Revlon
has failed to make a significant mark in the organic and mineral makeup categories.
• Increasing local distributers
◦ Local distributors’ increasing presence poses a challenge in some sectors, as the competition pays local distributors better margins.
• Infrastructure driven supply chain
◦ The present physical infrastructure-driven supply chain paradigm may be threatened by changing customer buying behavior through
internet channels.
• Growing competitions
◦ Loreal, Estee Lauder, Mac, and Sephora are Revlon’s key competitors.
