Revlon Reorganizes to Focus on Its Brands as Stars
In a bid to regain some of its past stature, Revlon Inc. has dramatically reorganized in hopes of returning to the big leagues.bedak untuk mengecilkan pori pori wajah
“It is a sensible thing to do in today’s world,” said Neil Saunders, chief executive officer of retail analysis firm Conlumino. “Whilst channels are very significant, they’re a lot less relevant than they used to be because consumers cross-shop different channels…what’s much more important is the overall view of a brand.”
“Everything should be consumer-centric,” said Jane Hali, ceo of retail research firm Hali & Associates. “The customer makes connections with the brands.”
Wall Street reacted positively to the move, with the company’s stock jumping almost 7.5 percent, to $34.55 Tuesday.
Fabian Garcia, who took the helm April 15, has hammered out a top-to-bottom business structure that puts the brands in the spotlight, instead of the distribution channels, as is usually done. “We are shifting the axis from channels to brands,” Garcia said.
The aim of this strategy is clear. “We want to become a beauty company that plays in the top 10 of beauty companies around the world,” said Gianni Pieraccioni, chief operating officer of markets for Revlon. “This calls for two things — organic growth and also acquisition.”
Garcia quantified Revlon’s newly discovered ambition. He said the company’s goal is to reach a total sales volume of $5 billion in five years. The company’s revenue total now stands at $3 billion.
In a wide-ranging interview in Revlon’s spacious headquarters with sweeping views of New York harbor, Garcia went through the math. “If we grow ahead of the market 50 basis points for the next four years, we’re one small acquisition away from the number,” Garcia said.
With that target in mind, Revlon is reorganizing into four divisions. Revlon and Elizabeth Arden will operate in their own segments, Fragrances will operate as a unit, and the remaining brands such as Almay, American Crew, Sinful Colors, Mitchum and others will operate as the Portfolio division, Garcia explained.
“Along with that, we are creating regions so we can complement our brand-centric organization with a customer development sales organization,” Garcia said. Revlon will have five areas of geographic focus: North America, Europe, the Middle East and Africa, Asia, Pacific and Latin America. John Collier, currently senior vice president of the North American consumer division, will be president of North America; Eric Lauzat will be president of EMEA and Asia with regional vice president Marco Ficarelli; Jaime Vazquez will be regional vice president for LatAm; Tracey Raso will be the regional managing director for the Pacific region, and Enrico Baldassarri will be regional managing director for Africa.
The regions report to the chief operating officer of markets, Pieraccioni, and each brand division is led by its own president — Anne Talley at Revlon, JuE Wong at Arden, George Cleary for Fragrances and Sennen Pamich for the Portfolio segment. Talley is returning to Revlon after more than a decade at L’Oréal, where she was most recently general manager, retail strategies and business development for L’Oréal Luxe. Wong was appointed president of Arden in mid-2015. Before the Revlon-Arden merger, Cleary was named president, global fragrance, for Arden. Pamich has been overseeing Revlon’s professional division for several years and joined the company during the Colomer Group merger in 2013 (that $660 million deal added CND Shellac and American Crew to Revlon).
