NEW YORK -- Supermarkets can expect a new trade policy from Revlon next year, as well as two new skincare lines for the face.
nveiled a list of new trade terms on Oct. 9 that places more responsibility for inventory control on retailers' shoulders. In fact, it has been reported that an overload of inventory at retail partially contributed to Revlon's 17.4% slide in sales last year to $1.86 billion.
"Our new approach clearly encourages more efficient practices and procedures throughout the supply chain and is focused on maximizing sell-through to consumers," said Larry Aronson, Revlon's president of North American sales, customer marketing and business development, in a press statement.
To facilitate efficiency, retailers will be offered a bonus for lower returns. The program will set targets for returns. If a retailer's actual returns fall below target the retailer will receive 50% of the cost savings from Revlon. It's been noted in the industry that Revlon previously had a liberal returns policy where it took a beating. The policy will also include a flat rate allowance for damages, eliminating the need for expensive handling of damaged returns.
Revlon will restructure its cooperative allowances for retailer promotions as well. These funds will now be based upon the prior year's sell-through volume, rather than shipments of Revlon products to the retailer. This will provide an incentive for retailers to increase sell-through, said the company. Once last year's sell-through is exceeded, retailers will earn additional market development funds.
In addition, the company announced over the next three years it will roll out a new wall fixture system. Revlon Chief Executive Officer Jeffrey Nugent told those gathered at the Cosmetic Executive Women's Newsmaker Forum earlier this month here that innovative point-of-sale display was an important goal for the company. "We believe that mass market-distributed products should have that same warm, appealing environment that we see regularly in department stores," he said.
Next year Revlon will roll out its two facial lines -- Skin Lights and Vitamin C Absolutes. The Skin Lights collection is being positioned as a new category of "skin brighteners" that adds colors to skin tones. Available in various shades in lotion, stick and loose powder, each item will retail for $13.95.
Revlon is also bringing to mass market the only complete range of vitamin C-based products with its Absolutes facial treatment line, different from other mass brands in that vitamin C is the primary ingredient. The six-item line will retail from $8.95 to $14.95.
