Fortune People
Olivia Newton-John's Greatest Hit
Millions of record buyers know the voice of Olivia New ton-John, the Australian pop star who asked the question, Have you never been mellow?
But lately her clothes have been selling better than her records. Newton-John, 40, jumped from platters to pat terns in 1983, when she started the Koala Blue women's sports wear boutique in Los Angeles. Through clever marketing and a canny licensing strategy, the company has grown to 27 stores worldwide and $14 million in sales.
Newton-John, who runs it with two partners, designs some of the clothes herself. I've always liked fashion,
she says. When I shop now, I call it research.
She opened the first store to help cure her homesickness for Australia. She filled it with novelties from Down Under, but the best-selling items were T-shirts adorned with a koala bear logo. The chain soon began selling brightly colored sportswear lines that were made in Los Angeles but had Aussie names like Alice Springs or Brisbane Check.
Newton-John, who hasn't had a hit since she urged her fans to get Physical
in 1981. says her stores are spinning off profits.
I want the chain to stand on its own,
she says. It mustn't rise and fall on my name.
Newton-John has the right idea: If Koala Blue stays in the black, she won't have to sing for her supper anymore.