Why would you shut down a business that was generating over £25m (Rs ~280cr) in revenue?
It boils down to two major aspects:
[1] PnL (obviously) & the rise of dupes
For a behemoth like Unilever, £25m is microscopic. Not only that, the brand was making losses even after multiple revival attempts.
In 2023, REN discontinued 29 SKUs to streamline its line‑up. And yet, it didn't make a dent in the business.
When every influencer is selling "clean-beauty-dupe" for ₹799 (in Indian context), REN’s looks costlier.
Nearly half of Gen Z shoppers admit they’ve purchased dupes on purpose. When “flexing” is less about luxury logos and more about “I found the same glow serum for one‑third the price,” premium mid‑tier brands get squeezed.
[2] Opportunity cost
Unilever has "30 Power Brands", a term they mention in their financial reports. It's the top 30 brands which generate over 75% of the revenue.
Keeping a sub‑£30 m brand alive soaks up:
- Management time
- Supply‑chain complexity, and
- Marketing budget
All of which can be put behind the brands like Dove and Surf.
In the words of the new CEO, “Fewer bets, bigger bets.”
I see this from multiple angles. The easiest is this: either scale like crazy (if you can) or stay fiercely, profitably indie. Both are good spaces to be in.
PS: I see this happening soon in the perfume industry. The dupes are on the rise. Many premium mid-tier perfume brands may see the same fate.
business marketing d2c
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