By then, space had become a problem and the company constructing a new building at 1655 North McCadden Place, Hollywood, adjacent to the Max Factor Studio on Highland Avenue. Max Factor’s gross profit had risen to US$18,946,795 with net earnings of US$2,418,324. Lipsticks were an important ‘fashion cosmetic’ in the 1950s and, as Max Factor’s lipstick sales languished at about 1½% in the United States, the company had to get more involved in the medium.īy 1955, things had improved somewhat. It was the main reason why Revlon’s share of the American lipstick market rose from 15 to 28% in 1956, and Coty’s from 3½ to 8%. Intense competition during the 1950s made it difficult for the company to institute further price hikes even though its margins were put under further pressure from its greater use of expensive television advertising.Īs a mass-marketing medium, television dramatically affected the sale of cosmetics in the United States in the 1950s. The company’s margins were also affected by increases in the price of raw materials, containers and labour requiring Max Factor to raise its prices in the United States by 10% across the board in October, 1950. After the pent-up demand for cosmetics created by war shortages was satisfied, over production by cosmetic companies created a glut and consumers in the United States were spoilt for choice.
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