Catherine Walsh, for her part, was already moving on. From the beginning, her vision had been to build what she called "the House of Jennifer Lopez," a full line of cosmetics and fragrances that reflected her many audiences and the many facets of her personality. One audience was the Gen-Y, urban-oriented, hip-hop-loving 15- to-21-year-old girls who identified with "Jenny from the Block." Glow by J.Lo was directed squarely at them. But there was also the Jennifer Lopez in the Versace peek-a-boo dress at the Grammy Awards, and the stunning white Valentino bridal gown at her most recent wedding -- to Cris Judd, the guy she was with before Ben Affleck. That Jennifer Lopez appealed to a more sophisticated and mature audience, Walsh believed, and there should be a fragrance for them as well.
Meanwhile, back at Sweetface, Glow by J.Lo had had exactly the effect Denise Seegal and Andy Hilfiger had hoped for. Sales of the J.Lo by Jennifer Lopez fashion lines had surged in the fall, driven by the success of the fragrance. "No question, it spilled over to the apparel, which had no marketing," says Kahn of Macy's East. "That's the interesting thing. No marketing. There wasn't one ad. [Lopez] didn't introduce it. She didn't model for it. She didn't come to make a personal appearance. The J.Lo [clothing] line just lived off the brand recognition of the fragrance and of Jennifer's name, and it was very, very strong." It was, in fact, one of Macy's East's best performers in its category through the fourth quarter of 2002.
On a cold February morning at the Sweetface offices in New York City, no one was looking back. In the lobby, eight large television screens on one wall showed all J.Lo, all the time. In one room off the lobby, the women in merchandising were checking the back-to-school clothing that would be shipped in June, while in another room the members of Heather Thomson's design team were hard at work on ideas for the next holiday season.
As Andy Hilfiger showed a visitor around, he talked about how the company had grown and changed in its first 18 months. Beyond Glow by J.Lo and the main clothing lines, there were other licensed products -- for example, preteen apparel, swimwear, and sunglasses. The company was also expanding the international distribution of its clothing, and talks were under way to extend the brand further with licenses for accessories and footwear.
Hilfiger and Seegal are reluctant to give out numbers on Sweetface's performance, but Seegal says the company exceeded its projection of $130 million in retail sales in 2002. That figure includes sales of both the main apparel lines, which Sweetface produces itself, and the licensed products like the fragrance and the swimwear, for which it receives a royalty of between 5% and 10% of sales. Like most apparel start-ups, Sweetface lost money on its clothing lines in its first full calendar year, and the royalties weren't enough to produce a profit overall, but Seegal expects the company to be profitable in 2003, thanks in no small measure to Glow by J.Lo.
In the long term, Seegal's challenge is to build a company that will continue to thrive after Jennifer Lopez's celebrity fades. In the short run, Seegal says she has focused on expanding retail distribution, particularly in department stores that have underestimated the appeal and potential of the brand. She also has to keep her eye on a parade of other celebrities -- including Gwen Stefani, Eminem, and Eve -- who, inspired by J.Lo, are launching their own fashion lines.
And what about the trademark suit? Does she spend much time dealing with that? "No," she says. "It's being handled through our attorneys. I don't spend any time on it at all."
The trial is set to begin on October 21.
Bo Burlingham is an Inc. editor-at-large.
Business by J.Lo
While Jennifer Lopez was not available to be interviewed for this story, she did engage in an e-mail discussion with editor-at-large Bo Burlingham. Some excerpts:
Given all the things you have on your plate, why did you decide to go into business?
I love fashion. I love clothes. Designing clothes has always been a dream of mine.
What do you like about business?
I have a creative passion for all that I do. The satisfaction I get back from giving something my all and feeling good about the effort really keeps it all alive for me.
Where did you get the ability and confidence to pick such a successful fragrance?
Giggle, right? I had a very clear concept and direction for our first juice -- it was all about being fresh, sexy, and clean. We talked about the scents I like: soap, vanilla, white flowers, grapefruit, and we put together the right combination! Through detailed descriptions of my favorite scents, we were able to come up with Glow by J.Lo very quickly.
What did you know about the other Glow before you chose the name Glow by J.Lo?
N/A.
What has been the biggest mistake you've made in business?
I try not to get too crazy about mistakes in business or lapses in judgment. No matter what the mistake, there is always a lesson to be learned behind it. I take the good, leave the bad, and move on.
