HBA Global Expo 2010 kicked off with a few nuggets of advise from Pamela Baxter, president and CEO of LVMH Perfumes and Cosmetics. After a few background stories of smalltime creams going big time and turning into full skincare lines, Baxter offered up some sound advice to those trying to break into the cosmetics industry. “Get as many different and cross-functional experiences that you can," Baxter said. You don’t understand finances and PNLs, then take a class. Surround yourself with great people—people that are better, faster, stronger, smarter. “… the best talent that you can," she said.
Baxter doesn’t like to micromanage; she wants her employees to flourish. When they have an issue, she has them bring the problem to her along with three possible solutions. One thing Baxter stressed was passion. “[The beauty industry] is one of the most emotional businesses out there," she said, as women use beauty as a source for self-esteem, among other things, and without passion and inspiration, you’re not going to make on an impact on a business that is emotion-based. She also encouraged “giving back"—via mentoring or in other ways—and getting involved with your local community; two important factors in building a successful business.
As the head of the Dior brand, Baxter gave some interesting facts on fashion versus beauty. “Fashion is very different than beauty, but both are emotional and sensual in how they relate to the product," she said. According to Baxter, 80 percent of beauty is static, based off basic products; and 20 percent is new launches. Whereas, in the fashion industry the opposite is true: 80 percent is new, driven by season; and 20 percent is static.
She ended her address with three “words" of advice (i.e., three things she looks for when hiring an employee or deciding to create a business relationship with someone): passion, isn’t afraid to take risks and flexibility. Breaking into the beauty industry is tough, and finding your niche and where you belong can be tougher. But a little bit of hard work and lot of passion can go far, and Baxter can attest to that.