Revlon is going bankrupt? Netizen: Buy!
Chinanews client, Beijing, November 13 (Reporter Xie Yiguan) "What? Revlon is going to file for bankruptcy? Can I still buy 225 and 325? Should I hurry up and stock up?"
When the news of "Revlon preparing for bankruptcy filing" appeared on the hot search, did you let out an exclamation like so many little sisters, and by the way, sent Revlon lipstick numbers 225 and 325 to the hot search.
Screenshot from Sina Weibo.
Haven't really gone bankrupt, the
lipstick is
sold out first
A few days ago, the Wall Street Journal's Chinese website reported that citing sources familiar with the matter, cosmetics company Revlon was seeking bondholders’ consent to debt restructuring, and also arranged for Almaty Enterprise Consulting to prepare for its possible bankruptcy.
"Some bondholders have not yet decided on Tuesday (November 10) whether to accept a restructuring proposal to save Revlon from bankruptcy." The report said, "Agreement may still be reached and negotiations are still going on."
After the above incident appeared in the newspapers, the little sisters who were originally "chopping hands" for other things panicked. "I immediately placed an order for two 225s. The discount is really big. One is only more than 20." "'Double 11 'I was going to stop chopping hands. I read this hot search and I went to buy it in a desperate way. Believe it or not, I went bankrupt before Revlon.
"Pinduoduo can't buy 225 anymore." "Good guy, I just went to see Tmall Global 225 is out of stock." Seeing that Revlon's popular color number was sold out, some netizens ridiculed: "One 225 per person, Revlon: I Is it all right again?"
Netizens commented on Sina Weibo.
A reporter from Chinanews.com found that the official flagship store of Revlon on Tmall is still operating normally, and a small number of lipstick numbers are out of stock.
Except for the monthly sales of black tube lipsticks and liquid foundations exceeding 30,000, the monthly sales of other products are mostly between several hundred and several thousand.
But just when netizens bought and bought crazy hoarding goods, things turned around.
According to foreign media reports, Revlon chairman Ron Perelman has reached an agreement with investment tycoon Carl Icahn that Icahn may help Revlon avoid bankruptcy.
After the news came out, Revlon’s stock price soared continuously, closing at $12.02 as of the 12th, more than twice the closing price of last Friday.
On the 11th, it hit an intraday high of $14.56, a new intraday high since April 29.
But it is worth noting that Revlon needs to reach an agreement before November 16 to avoid triggering the repayment of more than $1 billion in guaranteed debt.
Screenshot of Revlon's official flagship store on Tmall.
Once "kiss goodbye" the Chinese market, then returned
"Clouds want clothes and flowers, and spring breeze reveals Huanong", the verse in Li Bai's "Qing Ping Tiao" is the source of Revlon's Chinese translation.
As the cosmetics brand with the most stunning Chinese translation by netizens, Revlon was founded in New York, USA in 1932 and officially announced its listing in 1955.
Two years later, Revlon began to expand its categories through acquisitions and further develop its business.
In 1985, Revlon was acquired by MacAndrews & Forbes, a diversified holding company under American tycoon Ronald Perelman.
Currently, Revlon owns 14 beauty and personal care brands and 21 consumer product brands, with footprints in more than 150 countries.
As the first foreign-funded cosmetics company to enter China, Revlon did not give full play to its advantages in the right time and place, causing a big splash among consumers.
The "back waves" who entered afterwards, whether it was Maybelline, L'Oreal, Shiseido, Estee Lauder, all left Revlon behind.
Facing the dismal performance, on December 31, 2013, Revlon China left the last sentence on its official website Weibo: "The last day of 2013, put on a beloved lipstick, kiss goodbye!" Afterwards, Revlon withdrew from China market.
However, in June 2016, Revlon Group chose to acquire Elizabeth Arden, a cosmetics brand with a number of loyal fans in the Asian market.
In September of the same year, Revlon's overseas flagship store was launched on Tmall.
In 2019, Revlon’s overseas flagship store was upgraded to Revlon’s official flagship store and officially returned to the Chinese market in the form of online e-commerce.
However, the acquisition of Elizabeth Arden and the trial of water and electricity providers did not save Revlon's performance.
In the first quarter of 2020, Revlon had a loss of US$214 million.
In the second quarter of 2020, Revlon sales reached 348 million US dollars, a year-on-year decrease of 39%; a net loss of 127 million US dollars, compared with a net loss of 64 million US dollars in the same period last year.
In 2020, Revlon’s performance suffered from Waterloo and even had to prepare for bankruptcy. The most direct cause or the impact of the new crown pneumonia epidemic made it worse.
"Under the epidemic, customers all over the world have been affected." Shiseido's global CEO Masahiko Utani once bluntly stated that people have fewer opportunities to put on makeup under the condition of quarantine at home. In addition, for prevention, especially in Asia, Dai The number of masks has increased a lot.
The picture shows a cosmetics counter in a shopping mall in Haidian District, Beijing.
Photo by Xie Yiguan, reporter of China News Service
Cosmetics do not look at "age", but look at efficacy
After Revlon re-entered China in 2016, it has been focusing on low- and mid-price makeup, but in addition to its old rival Maybelline, it has already poured into a large number of emerging brands such as Perfect Diary and Huaxizi. These new forces are good at using webcasts, celebrities to bring goods, and marketing capabilities Outstanding.
This year's "Double 11", Perfect Diary, Huaxizi and other brands have sold more than 100 million yuan in the opening stage, entering the double 11 "billion yuan club".
Even if the bankruptcy temporarily stimulated people's desire to buy, the sales of Revlon cosmetics were still far from these "after waves".
Nowadays, the cosmetics market is getting bigger and bigger, and new products are emerging in endlessly. Even if your products are very cost-effective, if you can’t grasp the hearts of consumers and don’t have strong marketing methods, you will slowly fall behind.
Revlon is not alone in trouble.
Shanghai Jahwa, the "national product time-honored brand", recently announced its latest financial report. In the first three quarters, revenue was 5.362 billion yuan, down 6.51% year-on-year; net profit attributable to shareholders of listed companies was 312 million yuan, down 42.25% year-on-year.
The revenues of its brands Gaofu, Maxam, and Qichu have declined, and Herborist's year-on-year decline is more than 50%.
In 2014, Herborist contributed nearly one-third of the revenue of Shanghai Jahwa Group, and now it has become the "main force" of the company's performance losses.
"The core demands of herbal skincare brands are safety and non-irritation, but they have not achieved a particularly good breakthrough in the current consumer demand for strong efficacy." said Pan Qiusheng, chairman and CEO of Shanghai Jahwa.
In contrast, the functional skin care brand Winona has received double sales and word of mouth.
According to its double 11 battle report, Tmall’s official flagship store sales exceeded 700 million yuan, an increase of 105% year-on-year, and once again topped Tmall Beauty’s domestic product No. 1, and ranked TOP 9 in Tmall’s beauty category, which is also the only one this time. Enter the top 10 domestic products of Tmall beauty.
"Statistics show that about 32% of new cosmetics brands enter the market every year, but at the same time 25.5% of products disappear." iiMedia Consulting analyst Wang Qinglin said.
According to Tianyan Check data, there are more than 7.6 million cosmetics-related companies in the country with their names or business scopes.
In 2019, the number of new related companies exceeded 2.45 million, and the registration growth rate was as high as 36.32%.
In the second quarter of this year, a total of more than 754,000 cosmetics-related companies were added, a year-on-year increase of 15.1%.
Wang Qinglin said that in the current cosmetics market in my country, well-known foreign brands such as L'Oreal and Shiseido, domestic classic brands such as Pechoin and Proya, original niche Internet celebrities such as THECOLORIST and Mao Geping, and other cross-border brands such as Runbaiyan Palace Lipstick and Yunnan Baiyao Cai Zhiji is embarking on a melee, and domestic cosmetics brands and products are facing a severe situation of low bargaining power, serious product homogeneity, and increasing competitors.
The cosmetics market is "coming together", which brand do you like?
(Finish)