Lehman Brothers had focussed the company brand around the image of Helena Rubinstein rather than Valaze, a strategy Rubinstein continued after she regained control of the company. Rubinstein’s interests in Britain and Europe do not appear to have suffered to the same extent as those in the United States but these markets were smaller and centred on the upper end of the cosmetic market which was less likely to be affected by the economic downturn. Things slowly improved but net profits did not return to 1920s levels until the 1940s. The American business also underwent substantial restructuring, culminating in a recapitalisation approved by the board in 1936. The school may have been modelled on the Rubinstein Beauty Schools that had begun running for the general public in department stores since 1933.Ībove: c.1933 Stern Brothers department store window advertising the Helena Rubinstein School of Beauty on the second floor. In 1937, a new demonstrator training school was opened in the Fifth Avenue Salon, starting with a selection of fifty women from leading department stores in the United States and Canada. Katz in 1938.Īs part of the sales push, steps were taken to improve the training of Rubinstein demonstrators. He remained in this position until he was head-hunted by Elizabeth Arden in 1937, forcing Rubinstein to replace him with Myer H. Johnson as the new company sales director In 1933. To improve sales, Rubinstein hired Harry T. The change in strategy did not stop the slide in net company profits which were US$500,200 in 1929 but had fallen to US$415,961 by 1931. Wherever you see this Emblem, you will find an ample supply of basic Helena Rubinstein creams, lotions and cosmetics-all laboratory-fresh-and a trained advisor is always in attendance to aid you in your choice. You will find an adequate supply of the basic Helena Rubinstein creations at leading department and drug stores which display the new “Emblem of Authority”-a portrait of Helena Rubinstein in color, now distinguishing all Authorized Helena Rubinstein Dealers.
Accredited representatives were given a large colour portrait of Madame to hang on their wall. This reduced price-cutting and reintroduced a degree of exclusivity for her products. In 1932, she reestablished trade zones giving retailers who sold her products a local monopoly. After regaining control, she set about reversing this selling strategy. There was some truth to Rubinstein’s ‘vulgarisation’ claim but she only objected to her products being repositioned in the volume market when the share price of the company collapsed. So, having sold the American company for a reported US$7.3 million, she managed to regain control for about US$1.5 million. 234) – by buying shares cheaply on the open market. On the upside, the collapse in the share price enabled her to regain a controlling interest in the company – reported to be 52% of the company stock (Woodhead, 2003, p. Rubinstein owned 44% of the common stock of Helena Rubinstein, Inc. By 1931, common stock in the company had fallen to US$2 per share – down from US$18 per share in 1929 – a situation that neither Rubinstein or Lehman Brothers had predicted. Rubinstein was more likely worried about the price of her remaining shares than the concerns of others. Distribution had been expanded, and the new sales methods had vulgarized my products. Some wrote regretfully that it would no longer be possible for them to sell the Rubinstein preparations. As time went on they complained bitterly of the way in which the American business was being run by the new owners.
I had made many friends amongst the store owners, and they kept in frequent touch with me. In 1931, Rubinstein regained control of the American company she had sold to Lehman Brothers in 1928, later claiming to have bought it back after getting complaints from store owners. Continued from: Helena Rubinstein (1915-1930)Ĭontinued onto: Helena Rubinstein (post 1945)
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