So, what could this mean for Melanated brands in the beauty industry?
Revlon, one of the largest brands in the beauty industry, has officially filed for Chapter 11 bankruptcy after dealing with supply chain issues and the rising cost of supplies. The company has been offering reasonably priced drugstore makeup and hair care products since 1932, becoming a household name.
This bankruptcy follows several years of declining revenue. According to Reuters, the company’s sales fell 22% from previous reports. Although sales had seen a slight increase from 2020 at the beginning of the pandemic (rounding out at $2.08 billion by the beginning of 2022), it still was not enough to save the company. Revlon had also amassed a significant amount of debt, making it hard for them to sustain the development needed to continue to compete with other brands. According to a report from Bloomberg, this debt amassed over $3.7 billion.
But, what does this mean for Melanated businesses looking to create a larger presence in the beauty world?
For many Black/brown owned brands, this could be the break they’ve been waiting for. In the event that Revlon does slow down production or reevaluate some of its current products, more customers will be looking for a new brand to fulfill their beauty needs. With strong marketing strategies and competitive products, these companies could cause a shift in consumer efforts. With large companies like Revlon tending to overshadow, smaller, lesser-known Melanated brands with their gigantic media presence and seemingly endless resources, it has made it hard for these brands to get their footing in the beauty industry.
It’s also no secret that people are more interested in a more diverse type of companies now than ever. Melanated women, who hold a large portion of the buying power in the beauty industry, have shifted their focus to brands that cater to them, rather than supporting massive corporations that tend to be out of touch with diverse audiences. The more energy and effort a brand puts into creating products that work well with Melanated skin, the more successful they will be – simply because they are listening to the needs of their customers.
This also provides a unique opportunity for Melanated brands to gain notoriety and expand their customer base. By using social media to connect with larger audiences, these brands can fill the potential void that may be created from Revlon’s bankruptcy.
The beauty industry itself is growing at a rapid rate. According to Common Thread’s 2022 Beauty Industry Trends Report, the health, beauty, and personal care industry is predicted to be worth upwards of $716 billion by 2025. E-commerce is the main cause behind this expansion, even though brick-and-mortar stores aren’t becoming any less popular.
While the future of Revlon is unknown at this point, the beauty industry will be impacted by whatever the outcome happens – leaving room for Melanated brands to continue to make their presence known both online and in-store.
Looking for more Melanated brands to add to your beauty selection? Find everything you’re searching for at Melanin Factory.