The business of beauty

From annual sales of R3M to R661M over a period of seven years is no small feat. But for brothers Justin and David Letschert, owners of Bio-Oil, this was something that could be done and that they were able to accomplish from 2001 to 2008. The brothers took over Union Swiss which owns the Bio-Oil brand and slashed 19 products from the portfolio to focus on only one, Bio-Oil. To grow the brand they focused on an international expansion drive. This was a clever strategy because most companies usually find themselves spread too thin across products that don't even bring in monetary value. The thinking goes that, if 80% of your revenue comes from only 20% of your products, why keep the other 80% of your products. By getting rid of the other 80%, you can actually focus on the stars that are making your business. You need to grow, nurture and shine your star products - get rid of the holes, which are losing you money.