News that US beauty giant Revlon is pulling out of the Chinese market has come as a shock to the industry. According to media reports, the move is in line with the company's restructuring activities and is expected to result in the loss of 1,100 jobs, including 940 beauty advisor roles.
Speaking to the South China Morning Post, Revlon spokeswoman Elise Garofalo said: "We made a holistic assessment of the opportunity in China versus the cost of doing business there and we concluded that it made the most sense to exit the market.”
The beauty company is not the only foreign player to admit defeat when it comes to conquering China's multi-billion dollar cosmetics industry. French beauty giant L'Oréal reported in its third quarter results that China was “slowing”, although key brands within its L’Oréal Luxe portfolio, including Lancôme, Kiehl’s, Giorgio Armani and Yves Saint Laurent, managed to buck the downward trend, hinting at the continued demand for luxury goods in the country.