Revlon is a long established brand, so why is it now reduced to preparing for bankruptcy?

Yunxiang's clothes want to look, the spring breeze blows Revlon, this is Li Bai's poem, and there is also a brand that cites him as his Chinese name. That's Revlon. Such an archaic name, but the name of an American brand.

Founded in 1932, Revlon is a long-established beauty company that began with distinctive nail polish products, and has grown rapidly over the decades to become a well-known product in the makeup industry. In 1996, it entered the Chinese market. It mainly sells cosmetics, body care, perfume and other products, and the most well-known by the public should be their lipstick beauty products.

It is estimated that women in China who wear makeup should have a Revlon lipstick in their hands. The more popular 225 and 325 color numbers, won the love of the masses, in addition to the beauty of the color, the more attractive must be its **, can be called the conscience of the industry, a lipstick only forty or fifty yuan, once set off Revlon lipstick rush to buy. <>

What is more surprising is that Revlon has been revealed to have worked with a financial adviser, and if creditors cannot accept the company's restructuring proposal, Revlon may have to prepare for bankruptcy. The reason for the current situation must also be imagined, due to the impact of the epidemic, in 2020, Revlon's sales decreased sharply, with a net loss of 100 million US dollars. <>

In addition, Revlon as an old beauty brand, although it has a good reputation, but because of its weak innovation ability, it suffers from huge competitive pressure, China's makeup market needless to say, in recent years, various beauty brands have emerged, such as the perfect diary of crazy marketing, Tangerine, which is good for blush, and Kolaqi, which focuses on making lip gloss. Not only invited big-name stars to help, but also won the hearts of the people with its unique packaging and cheap **. <>

Not to mention other countries, China, a fertile land, has become a fat meat in the eyes of various beauty brands because of its strong consumption power. Compared with other brands, Revlon's competitiveness is very weak, but after all, it is also a company with a good reputation, and I still hope that he can survive.

Because Revlon is an old brand for many years, it has not innovated in technology, has not made breakthroughs in sales, and its share in the market has become smaller, so it has been reduced to preparing for bankruptcy.

In fact, the reason why it will fall to the point of bankruptcy is entirely because there are too many new products now, and the old brands are slowly being replaced. Naturally, you will be on the verge of bankruptcy.

Because Revlon hasn't been able to keep up with the times. Revlon, as an old brand, is not innovative enough.

As a long-established brand, Revlon has no innovation and lack of stamina internally, and externally, the continuous emergence of various new products has had a certain impact on it.

Although the brand is good, it is under tremendous competitive pressure because of its weak innovation ability. And in recent years, various beauty brands have emerged. Not only do you invite big-name stars to help, but it is also cheaper with its unique packaging.

Because Revlon's sales performance has declined very sharply, the losses are serious, and there are secured claims that are about to expire, if they can't pay the money, they may default and need to prepare for bankruptcy.

Because Revlon's turnover was declining year by year, operating losses were increasing every year, and there were not enough bondholders to participate in the restructuring and were forced to file for bankruptcy.

The first is the impact of the epidemic, which has devastated the company's revenue, both domestic and overseas.

The second is that although Revlon has tried its best to expand the market and brand innovation over the years, the market share is still being seized by other brands.

Because of poor management, the product is an old brand, and the things are very easy to use, but it is too simple, there is no update, and advertising is not good.

Business management issues. In the case of fierce market competition, business strategy is crucial, and the wrong direction will fail.

Because this brand has many makeup products that have been ** quality problems, plus now many other beauty brands are rising, this brand has been complained and reported by many people, so it has a debt of 3 billion.

In 1996, Revlon entered the Chinese market, due to its cost-effective characteristics, harvested the hearts of Chinese women, so far due to low sales, many places have suffered from the first bottleneck period due to the epidemic, unable to change the marketing scope in time, resulting in the final debt.

It's because he doesn't know how to innovate and doesn't want to cooperate with other countries. I am only willing to move steadily, and the quality has become poor.

Because of the epidemic, the economic situation around the world is very severe, and many companies are unable to make money and are even on the verge of bankruptcy.

This is due to the impact of the epidemic and the fierce competition in the Chinese beauty market, and Revlon is seriously uncomfortable in the Chinese market.

The impact and impact of the new crown epidemic is particularly large, and now people's consumption level is particularly low, and everyone's life pressure is actually very great, resulting in some enterprises going bankrupt.

Revlon has officially filed for bankruptcy! Shockingly, the sentimental consumption of Chinese customers has not been able to save it, in fact, mainly because Revlon has too much debt and too poor performance. <>

In the impression of many people, there are actually many 100-year-old stores in Europe and the United States, which also benefits from the inheritance and protection of commercial culture in Europe and the United States, but this so-called inheritance and protection cannot be an excuse for it to lag behind the times. The century-old Revlon officially filed for bankruptcy protection with the court, which means that the store has entered a state of closure, and if it does not enter the reorganization process, the Revlon brand will disappear completely.

1. Revlon officially filed for bankruptcy: the old store couldn't withstand the economic pressure<>

It is only natural that this company officially declared bankruptcy, after all, the current business situation is not very optimistic, and the best performance is just the sale of goods of 100 million US dollars. Given the size of the company and the signboard of its century-old brand, this sales volume is even less than 1 10 of Chanel, which has not specialized in lipsticks in recent years. This also shows that in the context of the huge downward pressure on the US economy, the old store cannot withstand the economic pressure, and naturally can only go bankrupt in the end.

If the United States had not let itself go for itself, it is estimated that the store would have been able to carry it for a few more years.

Second, the reason why the emotional consumption of Chinese customers has not been successfully saved: the survival of enterprises does not depend on overnight business <>

Many people think that since Chinese consumers love the Revlon brand so much, it is only right that Chinese consumers should be able to save it from bankruptcy through their own purchases, but everyone thinks too simply. The bankruptcy filing of an established company is not so easy, which proves that the company has long been difficult to return, if it were not for the fact that Lu Huanong would have owed billions of debts, and these debts are bad debts, Revlon would not have filed for bankruptcy protection in the court. Even if Chinese consumers can consume it in the short term, it will not reverse the reality of its losses, and Revlon will eventually go bankrupt.

According to U.S. News Network, Revlon finally couldn't bear it! Although Revlon had already gone bankrupt last year, and many customers in China were reluctant to save Revlon with violent consumption, they didn't expect that Revlon would not be able to hold on in 2022! The reason why Revlon was not held back is because the competition in the current cosmetics market is extremely fierce, coupled with the impact of the epidemic in the past two years, the pressure of the ** chain has also been challenged, and Revlon is already facing too much foreign debt, which has led to Revlon having to file for bankruptcy under layers of squeezing!

Revlon is actually a veteran cosmetics brand today, but unfortunately, as early as the end of April 2022, according to the documents submitted by the US court, Revlon's external debt has reached $3.7 billion! And that's only half the debt! If you go to a Revlon store to buy makeup at 618 in 2022, you will find that many products in the store are also specially marked with special sale and expiration labels, which also shows that Revlon is clearing a large number of warehouses.

Revlon has always been popular with consumers because of its high cost performance, whether it is foundation or lipstick. It can even be traced back to cooperating with many head anchors. But it's a pity that at present, as far as domestic beauty brands are concerned, both Perfect Diary and Huaxizi are showing explosive upward development, seriously squeezing Revlon's market.

Compared with the high-end market share, there are also L'Oreal and Estee Lauder who dominate the list. In this comparison, Revlon is indeed withdrawing from the beauty market step by step. <>

Although consumers are somewhat sorry for Revlon's withdrawal, the disappearance of a brand is not only a voice of feelings, but also a profit. If you still like Revlon, stock up now. After all, it won't be long before Revlon is delisted.

Emotional consumption is temporary, impulsive, and cannot solve long-term problems. When there is a problem in an enterprise, it is a big problem with internal funds or management or products, and it is unrealistic to pay only by the feelings of consumers.

Because the competitors of this product are too strong, and they do not keep pace with the times, the speed of innovation is slow, so it is eliminated after a long time.

Because at the beginning, you may buy because of the plot, but what can really retain customers is because of the quality of the product.