Beauty Sales: $4 billion
Key Personnel: Richard R. Rogers, executive chairman; David Holl, president and chief executive officer; Sheryl Adkins-Green, chief marketing officer; KK Chua, president, Asia-Pacific; Tara Eustace, president, Europe; Darrell Overcash, president, North America; Jose Smeke, president, Latin America.
Major Products/Brands: Skin care, color cosmetics, body care, sun care and fragrance marketed under the Mary Kay and TimeWise brand names.
New Products: Perfectly Bright Complex, Mary Kay Perfecting concealer, Cityscape Eau de Parfum and Cityscape Cologne, Gel Semi-Matte Lipstick, Lash Intensity Mascara and TimeWise Repair Volu-Fill Deep Wrinkle Filler. Mary Kay Runway Bold Collection.
Comments: Privately owned Mary Kay Inc., a 50-year old “social commerce beauty brand,” is active in more than 35 markets around the world and boasts 3.5 million Mary Kay Independent Beauty Consultants. 2015 marked the 15th consecutive year that more than 300,000 women started a Mary Kay business.
However, following several years of double-digit growth, sales were relatively flat in 2015, at $4 billion.
The company invests millions of dollars in R&D and conducts more than 500,000 tests each year to ensure its products meet the highest standards of quality, safety and performance. The company follows a Made in the USA platform, and employs more than 500 employees and produces up to 1.1 million products per day, of which 57% are exported to Mary Kay Inc.’s international markets. Approximately 75% of their business is overseas.
While many beauty companies are strategizing as to how to appeal to Millennials, Mary Kay is right on track. The direct seller reported that its independent beauty consultants are growing younger in age. In fact, tech-savvy Millennials account for nearly 50% of new salespeople, as many are intrigued by the company’s entrepreneurial business opportunities and flexible, work-at-home schedules. As the sales force grows younger, it has also become more diverse, with more than half of new members representing Latina, Asian or African American. Latinas comprise 35% of new consultants.
News of Note in 2016
In January, Mary Kay reached a corporate milestone, surpassing more than 1,200 patents for products, technologies and packaging designs in its global portfolio.
More than 130 patents were awarded to the company in 2015, including utility patents for skin care technologies and product formulations, such as its Volu-Firm Lifting Serum and TimeWise Body Targeted-Action Toning Lotion.
The company’s packaging innovations include design patents issued for Mary Kay Cityscape Eau de Parfum and Cityscape Cologne Spray bottles, Lash Intensity Mascara and TimeWise Repair Volu-Fill Deep Wrinkle Filler.
Known for its philanthropy in programs geared to helping women and children, the company holds a month-long campaign every May, featuring a new limited-edition Mary Kay Beauty That Counts Hearts Together Lipstick. Customers worldwide can make a difference in the lives of women and children simply by purchasing the one-of-a-kind lipstick, as the beauty seller donates $1 from each lipstick sale. The Mary Kay Foundation, has given $50 million to domestic violence prevention and awareness programs over the past 15 years.
In June, celebrity makeup artist Luis Casco, who appears on “Project Runway,” was named global beauty ambassador for Mary Kay.
In keeping with its commitment to USA-based manufacturing, the company announced that it will build a $100 million manufacturing and research and development facility on a 26.2-acre plot in Lewisville, Texas. “I am extremely proud of our commitment to Texas and to remain competitive with ‘Made in America’,” said Thomas Cho, chief supply chain officer for Mary Kay Inc. “We are very excited about our innovative vision for Mary Kay’s new U.S.-based global manufacturing and research and development facility.”