Revlon re-enters China market, names Jessica Jung as newest global brand ambassador
Revlon, the namesake cosmetics brand of Revlon Inc., is re-entering the China market.
The brand first exited China in 2014. According to a report from WWD, Revlon is making its comeback in China through Tmall, China's largest open business-to-consumer (B2C) platform. After holding a soft launch in the fall, the brand is now preparing to roll out its full assortment of products on the platform in May, the report said.
As Revlon re-enters China, the beauty company has simultaneously named Jessica Jung, the multi-talented former member of K-pop group Girl's Generation, as its newest global brand ambassador. In the role, Jung will represent the brand in Asia and appear in global campaigns this year for Revlon's 'Super Lustrous' and 'ColorStay' franchises along with other new launches such as new 'Total Color' permanent hair color, the company said.
With China in the midst of a slow recovery as the country begins to lift Covid-19-related restrictions, several brands have recently tapped into Tmall to reach the market's consumers. Within the past month, Miu Miu, Prada and most recently H&M's Arket have all announced their launch on the Alibaba-owned digital marketplace.
The return to the China market comes as Revlon Inc. continues to battle with financial instability. The company, which owns Revlon, as well as Elizabeth Arden, Almay and Sinful Colors, among other brands, hired Goldman Sachs to help it explore strategic alternatives, including the possibility of a sale of all or part of its business, in the summer of 2019.
The company's sales have declined for at least five quarters, and it posted preliminary fourth-quarter revenue of $699.4 million, well below market estimates of $755.4 million, a tank attributed to weak demand for its fragrances and namesake products. As of December 31, the company had long-term debt of $2.91 billion.
While its numbers have plummeted, the company has made an effort to turn itself around by ramping up its celebrity partnerships, tapping stars like Ashley Graham and Sofia Carson, and working to align itself with more millennial and Gen-Z-leaning consumer values; launching a new line of vegan hair color and new clean cosmetics.
Last month, the parent company announced that it expected to save up to $230 million a year by 2022 end, mainly by eliminating nearly 1,000 positions, as it works to improve profitability while continuing to explore options with Goldman.
In addition, the company announced that it has entered into an agreement with Jefferies Finance LLC for $850 million in new finance to repay senior loans due in February 2021 and 2019 term loan.
Copyright © 2023 FashionNetwork.com All rights reserved.