BURNS’S LATEST ANGEL: EMMOLO JOINS IBC
Byline: Pete Born
NEW YORK — Lynn Emmolo, senior vice president of global and U.S. marketing at Avon Products Inc., has resigned to become a key player at Intimate Beauty Corp., where she will spearhead the company’s joint venture with Shiseido Co. Ltd.
Emmolo will take the post of general manager of the as-yet-unnamed division, reporting to Robin Burns, president and chief executive of Intimate Beauty Corp., a business of Intimate Brands Inc. Burns is also president and chief executive officer of Victoria’s Secret Beauty, a division of Intimate Beauty.
The next division to be formed is the recently signed Shiseido joint venture. That effort is expected to develop into a freestanding beauty brand with its own stores, catalog and Web site. With plans to launch five to 10 pilot stores next fall, executives want to build the brand into a $1 billion business.
According to Intimate Beauty Corp., Emmolo “will be primarily responsible for executing the launch of the joint venture partnership.” That will include leading “the joint venture partner teams in conceptualizing, creating and implementing and executing the brand identity. She will then develop marketing and retailing strategies that mirror and promote the brand identity of the business.”
Burns described Emmolo as having a “tremendous breadth of experience in beauty coupled with a strong track record of success in brand management and strategic marketing. Lynn is also a results-oriented visionary with very strong leadership skills.”
At Avon, where Emmolo played a significant role in the company’s resurgence during her six years there, she oversaw global brand marketing, creative, research and development and regional marketing.
Prior to joining Avon, she held strategic marketing and product development posts during 15 years at Cosmair Inc., where she worked on building the L’Oreal cosmetics brand.
Burns provided some details about the joint venture Wednesday to a large group of Wall Street analysts meeting in midtown at a day-long update briefing by Intimate Brands Inc. Led by Leslie H. Wexner, chairman and ceo of Intimate Brands, which is 83 percent owned by The Limited, the heads of each division outlined the progress they have made and gave an outlook for next year.
Burns noted that she expects to build Victoria’s Secret Beauty sales to at least $1 billion within five years, principally by upgrading the brand from a promotionally priced toiletries business to a prestige-based assortment. She also has launched a new upscale store design, opening seven new units this fall. A total of 42 new stores will be opened this year and 18 older, outmoded units will be closed for a net gain of 24 units.
The turning point came last fall when Victoria’s Secret Beauty launched the first of three Dream Angels women’s fragrances, culminating in the introduction of the third, Divine, this month. The first scent, Heavenly, doubled expectations last November and December with a retail volume of $42 million. She predicted that all three scents would generate a volume of over $200 million next year.
Her strategy is to use prestige-priced fragrance as the engine of the new assortment, ultimately generating 50 percent of the division’s volume. As previously noted, a fourth fragrance — not connected to a Victoria’s Secret sub-brand — is slated for launch next spring. A third sub-brand is slated to follow 12 months after that.
Burns also plans to build up the budding color cosmetics brand, which is now in only 180 doors and generating 20 to 25 percent of volume in the new stores. Plans call for expanding distribution to 300 doors next year and Burns ultimately expects to build and hold the color volume to 10 percent of division volume.
Victoria’s Secret Beauty sales totaled $495 million in 1999, and the volume is expected to hit $560 million this year and $660 million next year.
In answer to an analyst’s question, Burns said she was “bullish” on the fourth quarter, considering the array and depth of new products and items that have been brought on stream since last fall.
Asked to elaborate, Jill Granoff, chief financial and planning officer of Intimate Beauty, said she expects a fourth-quarter percentage growth in “the low teens.”
Turning to the joint venture, she predicted that the new brand will be merchandised in a retail chain of 500 stores domestically. That doesn’t count the international distribution, which the partners expect to conceive with the guidance of Shiseido.