Iman fashions cosmetics business; supermodel and actress Iman seeks to build a beauty empire.

For 14 years, supermodel Iman paced the fashion runways in New York and Europe, and graced the pages of the world's top fashion magazines. But during her career, Iman had a hard time finding cosmetics that complemented her dark brown skin color.

"I would go to cosmetics counters and buy two or three foundations and powders, and then go home and mix them before I came up with something suitable for my undertones," explains the 39-year-old Somalianborn model and actress. She knew other women were doing the same thing, mixing and matching products to get the right shade.

Two years ago, Iman went to work on a cosmetics line. The Iman line debuted in July. The products aren't for African-American women only, but Asians, Hispanics, Native Americans - all women of color - who make up 30% of U.S. cosmetics buyers.

Iman cosmetics are sold exclusively at 200 J.C. Penney stores. Iman went with J.C. Penney because upscale department stores wanted to charge higher prices. Her products range in price from $7.50 for nail polish to $35 for natural moisture formula for the skin.

Not only is Iman tapping into a ripe ethnic market, but also a lucrative industry. According to a 1993 study by Packaged Facts Inc., a New York-based research firm, retail sales of ethnic hair care, skin care and cosmetics was $537 million. While hair care is the oldest and largest sector, ethnic cosmetics have been experiencing the greatest boom. Experts estimate last year's double-digit growth rate to be 22%, pushing cosmetics sales to $100 million.

Overall, African-American consumers spend $278 billion a year, according to Segmented Marketing Services Inc. (SMSi), a Winston-Salem, N.C., firm specializing in ethnic marketing. A large portion of that money is spent by African-American women who are the "purchasing agents" in their households, says SMSi President Lafayette Jones.

Many brands that were once considered nice to have won,t be able to survive in the 21st century without a strong ethnic consumer franchise, adds jones. But with African-American women having more choices, at different price points and segments of the cosmetics industry, companies introducing products also run a greater risk of failure.

"There will be a shake-up in the industry in the next two to three years," says jones. "Only the strong will survive, based on their offerings and ability to put the product in the hands of consumers at the best distribution point."

Jones believes Iman has a unique selling position and the financial muscle to play the game and win.

The venture was funded in part by six individual investors. Iman and a partner own 51% of the business. The supermodel says the Iman line is more than just a celebrity endorsement. She is involved in every aspect of the business - product development, packaging and marketing.

Those companies battling to rule the turf over cosmetics and beauty aids are big boys like Procter & Gamble, Estee Lauder, Maybelline, Revlon and then a host of smaller companies. Four are black-owned: Naomi Sims Beauty Products Ltd., WOC Products, J. Strickland and Co. and Gazelle International Inc.

Iman says she plans to create a beauty empire. Next year, the hands-on entrepreneur will introduce a line of hair care products and fragrances.