In a bid to regain some of its stature of the past, Revlon Inc has dramatically reorganized in hopes of joining the modern-day big leagues.
Fabian Garcia, who took the helm last 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 Inc. “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 compliment 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; Tracy Raso will be the regional managing director for the Pacific region; and Enrico Baldassarri will be regional managing director for Africa.
“The first thing that the brand presidents have to do is define a three-year growth strategy — where and how they’re going to grow their brands, in which segments, in which countries, [with] what kind of brand positioning,” Garcia said. “Then they will produce all the marketing programs … and all innovation that will come to market.”