In June this year, the global mainstream media gave blanket coverage to the news that Revlon had filed for Chapter 11 bankruptcy in the US. The Revlon Australia and New Zealand subsidiary had to spring into action to assure retailers and customers that the local arm of the heritage colour cosmetics brand was still doing very well indeed.
Australia and New Zealand are the second biggest market for Revlon outside the US. Retail Beauty talks to Tracey Raso, Managing Director of Revlon, Pacific Revlon about the much-loved brand’s continuing dominance and success in both markets.
Number Two in Total Cosmetics Market/Number One in Lip, Eyeshadow and Foundation and Chemist Warehouse
Consumer demand for our products locally remains strong, says Raso. “Consumers love our brands, which is why we continue to have a leading market position in Australia and New Zealand. In Australia, Revlon enjoys the #2 brand position across the total cosmetics market, thanks to prestige quality products at an accessible price point, continuous innovation and inclusive brand positioning.”
Revlon also holds the enviable position of the #1 ranking in the lip category with a 29 per cent market share, she says. “We also hold the #1 rankings in foundation and eyeshadow, with respective market shares of 23 per cent and 29 per cent. Constant innovation is a given across the beauty industry and consumers are hungry for all the trends they see across social media and Revlon continues to deliver.”
Revlon New Zealand is also in a dominant position, adds Raso. “We are the #1 cosmetics brand with a significant 27.7 per cent market share of the pharmacy channel in cosmetics. Revlon is 12.1 per cent ahead of the number two brand, Maybelline New York, and 15. 1 per cent ahead of the third placegetter in the New Zealand market, L’Oréal Paris.”
Globally, makeup sales have been on the upswing and the Australian market has mirrored the trend. 2020 was a challenging year but the total makeup category in Australia grew by 1.8 per cent in 2021, she notes. “Throughout this time Revlon maintained its #2 makeup ranking and continues to gain market share in pharmacy year-to-date—its largest sales channel. The brand also has a #1 ranking in cosmetics in Chemist Warehouse, Australia’s number one cosmetics pharmacy retailer. During the first half of this year, we reinvigorated our core business led by the ColorStay and Super Lustrous franchises and elevated support and activation plans to drive consumer demand.”
One Million Australian Shoppers/Positive Impact of Delta Goodrem and New Launches
We have one million shoppers buying Revlon products in Australia alone, says Raso. “We successfully grew our shopper base in 2021 by 29 per cent – about 192,000 shoppers – which was ahead of key competitors for the period.”
The first half of 2022 has been one of our strongest annual starts to date, she says. “Kicking off the year was the re-launch of Revlon’s #1 product and #1 foundation brand in Australia—ColorStay Longwear Makeup. The new improved formulation with skincare ingredients is exceeding expectations and is currently the #1 new product launch of 2022 in the pharmacy channel.”
As the number one lip brand in Australia, it was only fitting for Revlon to drive innovation in the category in 2022 with ColorStay Matte Lite Crayons, she adds. “It was also the first campaign spearheaded by Delta Goodrem as our first Australian brand ambassador. With a fully integrated launch at retail and an impactful launch campaign, the Matte Lite Lip Crayons were the #1 lip launch in pharmacy year-to-date. Both launches have helped Revlon to attract new customers to the brand.”
Delta Goodrem’s appointment as the brand’s first local ambassador last year was a significant testament to the strength and performance of Revlon Australia and New Zealand globally as the #2 region in the world outside of the US, says Raso. “Since the launch of Delta, the positive impact on brand health in conjunction with new product launches and strengthened communication plans has been overwhelming. A prominent strategy for driving Delta was to drive local relevance and shift brand perceptions to improve consideration—or how likely consumers are to choose Revlon.”
The results speak for themselves. Consideration has increased to 69 per cent, a 7 per cent increase year-on-year, for the 25 to 39 age group—a key growth demographic for the brand, she notes. “For lip specifically, Revlon has overtaken MAC as the #1 brand, which we haven’t experienced since 2017. Overall, with all the tactics in place across the last six months, the brand’s image is shifting from our 90 year heritage as a classic brand to a new positioning as a modern, trendy and innovative brand.”
Exclusive Partnerships/ Giving Back/ Strong Retailer Support
Over the coming months, the focus on Delta will continue with an upcoming launch for one of our leading lip franchises, which will take Revlon to a new generation to further enhance the modernity and relevance of the brand with consumers, says Raso.
“In July, we took part in a philanthropic campaign to celebrate and give back on International Lipstick Day on July 29 of the month. We united with the Delta Goodrem Foundation and Chemist Warehouse for an exclusive partnership and the company donated $2 from every purchase of Super Lustrous lipstick to Look Good Feel Better, the national program which helps men and women suffering from cancer to improve their appearance and self-esteem. Next year, Revlon will continue to focus on consumer-driven innovation across the lip and face categories with new technology to continue our on-going ‘skinification’ of makeup.”
Supporting retailers has been a strong pillar for Revlon in Australia and New Zealand for decades. But in the last 12 months, we have increased the level of support for all retailers, prioritising big bets while focusing on our strengths and levers to put Revlon at the forefront of consumers’ minds, she says. “From in-store theatre to product education, participation in key event and promotional periods, it is critical to work collaboratively with each retailer across varying channels and play to their strengths. Integrating Delta Goodrem into retailer plans has been crucial for the brand to excite, engage and drive relevance for the brand.
“Revlon has always stood for best-in-class merchandising to create a consistent brand look and feel at every touchpoint. This requires significant collaboration with retailers to execute effectively, facilitate speed to market and showcase our strength as a global brand with the ability to work locally. We are consistently monitoring the evolution of in-store and online experiences to stimulate creativity and shape our go-to-market strategies.”
Consumer Insights and Social Media Drive Growth
“Everything we do at Revlon is driven by consumer insights,” notes Raso. “We are continuously tracking buyer behaviour, industry trends and competitor activity to ensure we are meeting consumer expectations. Our existing customers have followed the brand for decades. They are loyalists that engage with the brand and have been at the forefront of many of our #1 products.”
Social media is the most valuable tool we have to understand how our consumers are engaging with our products, she says. “For example, with the rise in beauty tool sales during the pandemic, we saw many women adapting to at-home skincare regimes inspired by K-Beauty trends from Korea. This trend has naturally progressed into the cosmetics sector with so-called ‘dolphin’ or ‘glassy’ skin and brightening concealers and bright pink palates became increasingly popular.”
For Revlon, it’s all about discovery, therefore channels such as TikTok and Pinterest and relationships with creators and influencers have become an integral part of our marketing strategies, says Raso. “A key example of how these platforms have driven growth is our Volcanic Roller in the beauty tools sector. This iconic product went viral on TikTok globally, thanks to content creators. Sales have increased exponentially with 137 per cent growth year-to-date. It’s also become a hero item picked up by the influential daigou market in Australia.”
Tracey Raso – Fast Facts
- Tracey Raso joined Revlon as Marketing Director in 2011, becoming the General Manager in 2015.
- In 2017, she was appointed as Managing Director, Pacific Region, Revlon Australia and New Zealand.
- Over the past five years, she has helmed the company to increased market share and sales growth and presided over the successful integration of the Elizabeth Arden business.
- Prior to joining Revlon, Raso held senior marketing positions in the alcohol, food and personal care industries, working for leading multinationals such as Diageo, Colgate-Palmolive and Campbell Arnott’s.
- She is also the chair of the Accord Australasia board, the industry body representing the hygiene, cosmetic and speciality products industry.
This article was published in the Spring issue of Retail Beauty.