| If you are of a certain age you will vividly remember | | | | deployment of assets. For a number of years Revlon |
| the following names: Helena Rubenstein, Faberge, | | | | held on as king of the category. However, the |
| Germain Monteil, Trigere, Revlon, Elizabeth Arden, | | | | inevitable slowly began to happen. Product launches |
| Max Factor, Schwinn, W. T. Grant, Montgomery | | | | began to stall. The Company began to follow |
| Ward and Chuck Taylor. Each name represented a | | | | competitor's successes with me-too look-alike |
| hugely successful consumer product brand. | | | | products. Lancome, L'Oreal and Estee Lauder, under |
| Each of these brands was grown from the | | | | the lead of entrepreneurial owners, became industry |
| entrepreneurial seed of a visionary. Unfortunately, | | | | innovators and assumed leadership in the space |
| each was subsequently abused, in several cases | | | | historically dominated by Revlon. |
| terminally, by non-visionary corporate bean counters. | | | | It has been 15 years since Revlon left the |
| A classic example is Revlon. Revlon is instructional | | | | department store business. Mr. Bergerac was |
| because it remains in the news, mostly for being a | | | | awarded a lucrative "golden parachute" when financier |
| tortured shell of it's former glorious self. Founded by | | | | Ronald Pearlman took control of Revlon in a hostile |
| Charles Revson in the 1930's, Revlon was the largest | | | | corporate takeover. Under Mr. Pearlman's ownership |
| cosmetic company in the world until the 1980's. | | | | Revlon has been a continual money loser. Product |
| Ultima, Norell, Charlie, Bill Blass and Eterna 27 were | | | | innovation is non-existent. Revlon's products are sold |
| subsidiary divisions under the Revlon corporate | | | | in drug chains and mass merchandisers and are |
| umbrella. The finest department and specialty stores | | | | regularly promoted with off price coupons. Charles |
| in the world fought to carry these upscale, elegant | | | | Revson would be livid. But he would not be alone as |
| products. Revlon was widely respected as the arbiter | | | | a founding entrepreneur, nurturer of a great brand |
| of taste for fashion conscious women. Fire and Ice, | | | | and yet, unfortunately, a life's work diminished or |
| Lips and Tips and That Man are only a few examples | | | | extinguished by successors lacking the innovative |
| of product marketing campaigns that were ubiquitous | | | | gene. |
| in consumer culture of the time. | | | | Great entrepreneurs like W. T. Grant, Montgomery |
| Charles Revson was one of the most famous | | | | Ward and Pauline Trigere are rare. The ability to |
| businessmen of his time. Books were written about | | | | create, innovate, manage and grow a business is |
| his life, business strategy and the legendary brutal | | | | rarely found in a single package. Calvin Klein is a |
| bullying of his management personnel. He paid his | | | | creative entrepreneurial genius in the fashion world. |
| people exceedingly well and expected total | | | | His partner, Barry Schwartz is the unseen business |
| commitment to his company. The drive to stay | | | | management half of the Klein success. They |
| ahead of the competition by constant innovation and | | | | compliment and balance each other. Whether their |
| creativity was all consuming for Mr. Revson. Nothing | | | | successors can continue to provide clothing designs |
| was allowed to impede his constant pursuit of | | | | that the consumer will desire is an open question. |
| staying number one. His famous department store | | | | It was easier for Germain Monteil to build her skin |
| mantra, "success requires space, location and | | | | care line from scratch than it was for The Squibb |
| demonstration" is a given followed by successful | | | | Drug Company, after purchasing this growing brand, |
| merchants to this day. He once was asked how he | | | | to maintain it. Germain Monteil products are no longer |
| could justify charging $5 for a $.40 cent lipstick? His | | | | sold. There are far too many such examples. |
| famous retort: "I don't sell lipstick, I sell hope" is an | | | | In my work with entrepreneurs I am constantly |
| accurate reflection of an entrepreneur who knew his | | | | confronted with examples of ambition not paralleling |
| customer and how to please them. | | | | reality. As Clint Eastwood famously quipped in a Dirty |
| As Mr. Revson aged, he could see the need to | | | | Harry movie, "a man has to know his limitations". It is |
| address his succession as crucial to his legacy and | | | | a rare person that has the range of abilities to both |
| Revlon's future. After conducting a famous, | | | | launch and successfully build a product. Limits of ability |
| thoroughly documented executive search, he hired | | | | or experience, however, do not close the door to |
| Michel Bergerac from IBM. Mr. Bergerac was a brilliant | | | | potential success. The right partner, team or alliance |
| executive. He inherited a billion-dollar business with | | | | can spell the difference between success and failure. |
| worldwide operations. Revlon dominated the male and | | | | Charles Revson was the whole package. His |
| female fragrance, color cosmetic and skin care | | | | successors have proven themselves to be not of his |
| markets. | | | | caliber. |
| Sadly, the business culture of the 1980's and 1990's | | | | I love to discuss specific opportunities with |
| did not value creativity and innovation as much as | | | | prospective entrepreneurs. Please call me at any time |
| asset deployment. Mr. Bergerac was excellent at | | | | to review your dreams. |