Beauty Quadrant: BReasons for Beauty Brands Going Bankrupt

Hello to all of you beautiful nerds and welcome back from traveling the vast nerd universe. I am back with another post!

Makeup Brands Going Bankrupt!

Again, I was watching What’s Up in Makeup and found out that Morphe is considering bankruptcy as well since months ago I heard that BH Cosmetics was going bankrupt but got bought out and then of course Revlon, one of the big ones in drugstores, also going bankrupt and there are some reasons why which I will be talking about!

Disclaimer: This post is based on thoughts and opinions of the lead writer of this blog. Please respect his thoughts on this subject. You have been warned!

So far, I have heard that BH Cosmetics has been bought by Makeup Revolution but on the heels we do have Revlon and Morphe’s parent company, Ferma, also going down this hole due to certain factors. Becca Cosmetics did go out of business recently and who knows who else would go that route and it’s hard to tell who is doing good or who is doing bad in the makeup sphere. Let’s see some factors I think that may contribute!

The Pandemic!

2020 was a new year and new things on most makeup brands’ horizons but what they didn’t expect was that a pandemic would happen. As we know, the virus known as CoVid 19 came to our world and basically changed it in not only viruses affecting each other but also the market itself. Becca closed its doors due to how they lost sales during the Pandemic but it is weird to say that a lot of online sales took place for a lot of brands because no one hardly took a step into a makeup store. Also, a lot of people were wearing masks and it was hard wearing foundation, powder, and concealer due to how much it gets into pores and they can’t breathe, the pores I mean. So, everyone did their makeup above the mask instead of under. BH Cosmetics  felt this the most because people were not buying as much when it came to their makeup and I had a feeling most people preferred getting skin care due to how people got a lot of acne underneath. I even was a victim of that for a short time.

Relying On Influencers

Jen pointed out the history of Morphe and one part of the history with them is how big they relied on the influencer market on YouTube due to how audiences were buying what they used. As I remembered as someone who watched a lot of YouTube back then and of course did buy things I seen advertised there, I always heard the famous line of “Use my code ‘insert name here 20’ for 20% off at checkout!”” I didn’t use the codes due to not having a job nor my own money in my account. I did get an Ulta credit card when they were heading to Ulta, well to build credit of course. I did purchase the vegan brush set and was not impressed, which will be my next point. I did notice as time went on that Morthey started losing these influencers due to scandals and even one, Jackie Eina, decided to take her code off from Morphe which can happen. Relying on influencers as your main market can be good at first due to how how they advertise on their channels except it can backfire due to how the audience would step away from the influencer with what takes place and that audience can also step away from the brand they promote, which Morphe relied on and relying just on that alone can lose sales. 

Quality Does Not Match the Price

One of the issues of makeup brands is the quality can be either good or bad depending on how well the formula has been put together or the tool has been made. Morphe has been famous not only for their shadows but their brushes. I remembered how some of the influencers said that the brushes are the best ones you’ll ever use. As someone who has used brushes from many brands, these aren’t what I’ve expected, especially using the vegan set I purchased from Ulta. The brushes were not the best and I felt that one of them almost felt like it was about to shed. I heard in reviews on YouTube that they shedded while washing them and that can break a brush brand. Another example of quality being horrible, Revlon’s eye shadows. I have enjoyed some of Revlon’s shadows but have noticed some were not as pigmented such as one quad I got a while back. I had a hard time blending and flaking off my eyes. I preferred the products but I did have one instance when the lip tints had no product, which was odd! I mean one of the tints. Plus, these sponge tipped lip tints are mentioned through Allure and top notch. So, quality is a big thing when it comes to getting customers because they are putting their hard earned money, whether it’s being paid from their jobs or working through YouTube or Tic Toc, they want to spend their money on good quality and that is what most customers prefer.

Being in the Times of Social Media

This is important because social media is where you want to be. Back in the 1980s and 1990s there was no social media. We had advertisements on television and in magazines, especially teen magazines such as Teen People, J-14, and Tiger Beat. I remembered Cover Girl being advertised in Seventeen Magazine when I was twelve. Nowadays, you not only have YouTube with ads about different makeup brands but of course influencers talking about makeup brands as they do their makeup, even now Tic Toc with talking about brands such as Charlotte Tilbury and Tarte. I only have seen Revlon advertised once on YouTube and that was when Gwen Stefani talked about one of their lipsticks since she was well-known for her red lip. That was all and after that it was Maybelline, Cover Girl, and L’Ireal. I think Revlon has lost its touch in the current time and can see why they have lost sales. If you’re advertising in the current world and using social media then the sales would keep coming. I remembered getting into makeup that YouTube was where I found out about my products and went to WalMart and Walgreens and remembered the girls at WalMart asking me how I know about these products and I told them the internet. Without the internet showing these items then the brand would not get their money. Money basically helps the brand survive and without it they would go bye bye. I think that is why Revlon should try to get back into the game by being more open to the influencer market and also create more internet ads for people to recognize their products.

That completes this post. I felt better writing about makeup again that is not just subscription based. Which, I apologize for not posting about my Glam Bag like I usually would. Unfortunately, due to some events I am going to just get my November bag and unsubscribe afterwards and will explain next month after RangerStop, which is in three weeks and we are excited to be back at an Orlando convention after three years due to CoVid. We did get asked about Holiday Matsuri last year but no longer go to that one which I still have my reasons for. I will be doing a post about nail polish since I needed to do that a while ago. So, stay tuned!

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