British beauty brand falls out of favour

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16th August 2022

Bite-sized business news from the UK and beyond

Good morning Amazon is releasing “Ring Nation,” a reality show based on footage from its Ring security cameras next month. The show will feature Ring footage of “neighbours saving neighbours, marriage proposals, military reunions and silly animals.”

Today's stories

British beauty brand falls out of favour
Challenger banks beat high street rivals in consumer rankings

RETAIL
British beauty brand falls out of favour

What happened?
Shares in Kent-based make up brand Revolution Beauty sank to a new low last week as the company faces copying allegations, weaker consumer demand and rising costs.

How did we get here?
Revolution Beauty owns the Makeup Revolution brand and sells its products in stores like Superdrug and Boots and online on ASOS and Boohoo with sales in 45 countries. Founded in 2014 the company grew quickly using social media and partnering with influencers. Last summer Revolution debuted on the London stock market to much fanfare and was pegged as the British beauty brand to rival international powerhouses like L’Oreal.

But 2022 has been a tough year
Revolution shares have fallen 85% in 2022 and are now worth 19p after listing at 170p in July 2021. Problems started when it was accused of copying the make up designs of other brands and influencers causing it to withdraw several products from sale.

The war in Ukraine meant the company had to end trading in the country and Russia – two of its highest growth markets. A squeeze in household incomes due to the cost of living crisis could also mean that consumers in other markets will start cutting back on non-essential items like make up.

Like many retailers Revolution has also had to contend with supply chain issues, rising costs of raw materials and staff which has eaten into profits.

Looking ahead: Earlier this month dealt another blow to investors when it announced it would have to delay the release of its financial results for the year to February 2022 until the end of August. It says it needs more time to complete the audit as there were issues with “certain accounting practices” that could dent profits even further.

Other stories to keep you in the loop

Heathrow extends flight restrictions until end of October
Ministers planning to cut civil servant redundancy pay at same time as 91,000 jobs
Thousands of British Airways workers to get pay rise of up to 13%
Aldi to give thousands more workers a second pay rise
Reebok owner closes in on Ted Baker deal
Uber increases fares for second time in 9 months
Goldman Sachs slashes London banker pay by 60%
Campaign to save M&S Oxford Street building gets backing from authors and architects
Nationwide offers 11,000 workers a £1,200 bonus to help with bills

BANKS
Challenger banks beat high street rivals in consumer rankings

What happened?
Challenger banks Monzo and Starling have leapfrogged high street banks in a customer survey of service quality for UK personal and business current accounts.

How did we get here?
Since 2016 the UK competition regulator has been conducting a twice-yearly survey with thousands of individuals and small businesses to rate the quality of service they receive from their banks.

Respondents are asked how likely they would be to recommend their bank to a friend, relative or other business. The survey also covers the quality of online and mobile provision, branch and overdraft services and, for small businesses, the quality of the relationship management they receive.

In a sign of growing demand from for digital banking among the public, Starling Bank and Monzo came out on top as the first and second for both personal and business accounts. At the bottom of the list were TSB, Virgin Money and Royal Bank of Scotland.

Why it matters
A survey by YouGov earlier this year found that 81% of people say the quality of online experience determines who they bank with, while the over 55 age group saw a sharp 60% jump in more frequent digital banking usage after the pandemic.

The pandemic accelerated the move to online banking and app-only providers like Monzo, Revolut and Starling Bank. These banks have flourished taking market share from traditional high street banks who are trying to keep up with their tech rivals by upgrading their digital systems.

Stat of the day

A typical UK worker is going into the office less than 1.5 days a week – with Friday the most popular day to work from home, according to a global survey

Interesting links from around the web

Why you should stop ghosting people and just start saying no
250+ (not boring) questions to ask to get to know someone better
How the cost of living crisis is testing friendships

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British beauty brand falls out of favour

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