Issues that may impact the industry include consumers’ concerns about product safety and the use of animal testing by cosmetics companies. In 1990, cosmetics giant Revlon became one of the first industry heavyweights to swear off all animal testing. Since then, Revlon has grown to be an animal-friendly empire, garnering awards for its products from magazines such as Cosmopolitan, Teen People, Allure, and In Style. That is a signal that Revlon has an awareness of social responsibility and also showed their concerns about natural environment.
Besides, with the income increasing, modern people are more willing to purchase personal care products and cosmetics for themselves. The age range of consumers is developing to both younger and elder. These trends are obviously seen especially in some developing countries and areas. Since the majority of personal care products are currently sold in the United States, Japan, Canada, and European countries(less than 20%of worlds population), the potential for sales of personal care products around the world is excellent.
Increasingly, cosmetics/personal care is not an industry for women only; men purchase personal care products such as skin creams and hair care products/dyes and many men are trying cosmetics in an effort to improve their appearance. The market for hair colouring has expanded with teenagers and adults wanting more vibrant colouring options. Revlon also shows its social responsibility according to charities. There are the most recent examples which are significant.
Through November 2008, Revlon donated a percentage of their profits to the Rainbow Trust children’s charity. Another one is announced in May of 2009. Revlon said it would donate 10% of sales (up to $100,000) of its new color collection to fund women`s cancer program in partnership with the EIF, which full name is Entertainment Industry Foundation. References: Fred R. David, Strategic Management(10th Edition), Tsinghua University Press, 2008. 11, Page 75 http://www. caringconsumer. com/company_revlon. asp Fred R.
David, Strategic Management(10th Edition), Tsinghua University Press, 2008. 11, Page 75 Technological The Company believes that it is an industry leader in the development of innovative and technologically-advanced cosmetics and beauty products. The Company’s marketing and research and development groups identify consumer needs and shifts in consumer preferences in order to develop new products, tailor line extensions and promotions and redesign or reformulate existing products to satisfy such needs or preferences.
The Company’s research and development group is comprised of departments specialized in the technologies critical to the Company’s various product categories. The Company has a cross-functional product development process, including a rigorous process for the continuous development and evaluation of new product concepts, formed in 2007 and led by senior executives in marketing, sales, product development, operations, law and finance, which has improved the Company’s new product commercialization process and created a comprehensive, long-term portfolio strategy.
This new process is intended to optimize the Company’s ability to regularly bring to market its innovative new product offerings and to manage the Company’s product portfolio. The Company operates an extensive cosmetics research and development facility in Edison, New Jersey. The scientists at the Edison facility are responsible for all of the Company’s new product research and development worldwide, performing research for new products, ideas, concepts and packaging.
The research and development group at the Edison facility also performs extensive safety and quality testing on the Company’s products, including toxicology, microbiology and package testing. Additionally, quality control testing is performed at each of the Company’s manufacturing facilities. As of December 31, 2008, the Company employed approximately 160 people in its research and development activities, including specialists in pharmacology, toxicology, chemistry, microbiology, engineering, biology, dermatology and quality control.
In 2008, 2007 and 2006, the Company spent $24. 3 million, $24. 4 million and $24. 4 million, respectively, on research and development activities.  References: Revlon, 2008 annul report. Pdf Future outlook According to the annual report of Revlon, the company encouraged by the continued growth in mass channel color cosmetic consumption in the U. S. and in key markets around the world throughout 2008 and in early 2009. They are continuing to execute their strategy and manage their business while maintaining flexibility to adapt to changes in business conditions.
They are also continuing their intense focus on the key growth drivers of our business, which they believe, over time, will generate profitable net sales growth and sustainable positive free cash flow.  In our view of point, besides these strategies, Revlon should focus on the development in international business, especially in Asian Pacific area and Latino area. It also said China will be one of the primary market of Revlon in its future business. We appreciate this decision very much.
Chinese currency keeps raising in value, and if its value increased by 10% percent, the revenue of Revlon will be raised a lot. It may also cause, however, more costs in manufacture and employees, so they should better make appropriate strategies to reduce costs as much as possible in advanced. In addition, we believe that if Revlon can make more advertisements in Asian Pacific and Latino areas, its selling will be improved appreciably since brand recognition will affect people a lot. References: Revlon, 2008 annul report. Pdf.