Headquartered in New York City, Revlon is a cosmetics leader with brands such as Almay and Revlon ColorSilk hair color, Mitchum antiperspirants and deodorants, Charlie and Jean Naté fragrances, and Ultima II and Gatineau skincare products. Revlon’s beauty aids are distributed in more than 100 countries, though the USA is its largest market, generating about 55 percent of sales. Walmart is Revlon’s biggest single customer, accounting for some 22 percent of sales.
Revlon manufactures, markets, and sells cosmetics, women’s hair color, beauty tools, anti-perspirant deodorants, fragrances, skincare, and other beauty care products. Revlon products are sold and marketed under brand names, such as Revlon, including the Revlon ColorStay, Revlon Super Lustrous, and Revlon Age Defying franchises; Almay, including the Almay Intense i-Color and Almay Smart Shade franchises; Sinful Colors in cosmetics; Revlon ColorSilk in women’s hair color; Revlon in beauty tools; Mitchum in antiperspirant deodorants; Charlie and Jean Nate in fragrances, and Ultima II and Gatineau. Revlon also owns certain assets of Sinful Colors cosmetics, Wild and Crazy cosmetics, freshMinerals cosmetics, and freshcover cosmetics.
Headquartered in New York City, Coty is one of the world’s leading makers of beauty products for men and women. Led by CEO Michele Scannavini, Coty is a $4.1 billion beauty company, and the biggest seller of nail care, nail polish, and fragrances in the USA. Sarah Jessica Parker, Jennifer Lopez, Celine Dion, Gwen Stefani, Katy Perry, and Thomas Dutronc are several celebrities that promote Coty. Founder of the company, François Coty created his first perfume, La Rose Jacqueminot, in 1904.
Coty’s product lineup today ranges from moderately-priced scents sold globally by mass retailers to prestige fragrances and nail polishes found in department stores. Coty’s brands include Adidas, Philosophy, Rimmel, and Sally Hansen. Cody’s prestige perfume labels are led by Calvin Klein. Coty’s shimmery blue nail polish and Lady Gaga’s perfume are high-selling products. Thomas Dutronc is the face of Coty’s new Cerruti fragrance for men, which launched in 2013.
Coty’s Rimmel Scandaleyes mascara, which debuted in early 2012, is another big seller. Over-the-top lashes are hot these days because false eye lashes have made a comeback and are “almost mainstream.” Promotional material for Scandaleyes urges women to “ditch those falsies.” Mascara makers today compete with eyelash lengthening drugs such as Latisse.
On November 14, 2012, in the Kingdom of Saudi Arabia, L’Oréal created L’Oréal KSA, a new subsidiary based on a joint venture with Al Naghi Group. L’Oréal brands have been distributed in the Kingdom of Saudi Arabia for two decades and since 2000, Al Naghi Group has been the company’s sole distributor for its Consumer Products, Active Cosmetics, and Professional Products Divisions. However, L’Oréal KSA will manage a portfolio of brands including, among others, L’Oréal Professional, Kerastase, L’Oréal Paris, Garnier, Maybelline New York, and Vichy. L’Oréal KSA’s will enable the company to better understand and to meet needs of woman in one of the most male-dominated countries in the world. There are other countries globally, especially in Africa and South America, that L’Oréal could engage in a similar manner. Brazil, for example, is where Avon derives most of its revenue, more even that from the USA.
There are numerous firms that could be acquired by L’Oréal to further expand and penetrate globally. Even a firm such as Avon that is struggling financially, but has a business model that is especially suited to emerging economies, may be interested in an offer from L’Oréal. Another firm could be Coty, Inc. that could fit well with the L’Oréal portfolio. And then there are cosmetic and fragrance divisions of large firms such as Procter & Gamble that could be available if L’Oréal deemed that to be attractive.
L’Oréal needs a clear strategic plan for the future. Perhaps the firm could vastly improve its selling operations online. Being the biggest and the best at year-end 2012 does not guarantee prosperity in the years to come.