Wikipedia

Mary Kay

For the Greek landscape photographer, seeMary Kay (landscape photographer).For the American actress, seeMary Ellen Kay.For the guitarist and performer, seeMary Kaye.

Mary Kay Inc.is an American privately ownedmulti-level marketingcompany.[3][4][5][6][7]Mary Kay is based inAddison, Texas.The company was founded byMary Kay Ashin 1963. Richard Rogers, Ash's son, is the chairman, and Ryan Rogers, Ash's grandson, was named CEO in 2022.[8][9]

Mary Kay Inc.
Company typePrivately held company
IndustryMulti-level marketing
FoundedSeptember 13, 1963;61 years ago(1963-09-13)
Dallas,Texas,U.S.
HeadquartersAddison,Texas, U.S.
Key people
ProductsCosmetics,skin care
RevenueUS$2.7 billion (2022)[1]
Number of employees
Staff 5,000
Salespeople 3.5 million worldwide (2015)[2]
Websitewww.marykay

History

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Foundation–2000

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In 1963, Mary Kay Ash founded the company based on a line of cosmetics she had been wearing for several years.[10][11]She purchased the formula from a woman who had been selling it privately.[10]Originally the company had 318 consultants and sales of $198,154.[12]By 1991, it exceeded $500 million in sales through 220,000 consultants.[13]In 1995, its sales had grown to $950 million.[14]

2001–present

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Founder Mary Kay Ash died on November 22, 2001.[15]In March 2020, the company closed operation inAustraliaandNew Zealand.[16][17]In November 2022, David Holl, the company’s CEO since 2006, retired after nearly 30 years with the company but remainedchairman of the board.[8]In November 2022, Ryan Rogers was named CEO.[18][19]

Business model

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Mary Kay corporate headquarters in Addison, Texas

Mary Kay sellscosmeticsthrough adirect marketingmodel.[20]Mary Kay consultants, called beauty consultants, can make income bydirectly sellingto people in their community, and also receive a commission when they recruit others to begin selling under their distribution network.[21]Mary Kay releases few details about the average income of its sellers.[22]

Manufacturing plants

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The company's primary manufacturing plant is inDallas, Texas.[23]A second plant was opened inHangzhou,China,to manufacture and package products for that market.[24]A third plant was opened in 1997, inLa Chaux-de-Fonds,Switzerland for the European market. The Swiss plant closed in 2003.

Cars

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In 1968,Mary Kay Ashpurchased the first pinkCadillacfrom a Dallas dealership, where it was repainted on site to match the "Mountain Laurel Blush" in a compact Ash carried. The Cadillac served as a mobile advertisement for the business. The following year, Ash rewarded the company's top five salespeople with similarly painted 1970Coupe de Villecars.[25][15]GMhas painted over 100,000 custom cars for Mary Kay. The specific shade has varied over the years from bubble-gum to softpearlescentpink. GM had an exclusive agreement to sell cars of the specific shade only through Mary Kay. The cars are awarded to consultants as company-paid, two-year leases, and Consultants/Directors who choose to buy the cars at the end of the two-year lease period are only allowed to resell them to authorized dealers. After the lease expires, the cars are repainted before being resold.[26]

Mary Kay Pink Cadillac Convertible

Mary Kay has different car incentive levels for its Consultants. Consultants can earn the use of a silverChevrolet Malibuor a cash compensation of $425 a month. Consultants can also earn a blackChevrolet Equinox,Chevrolet Traverse,Mini Cooperor $500 a month. "Top performing" consultants can choose between the pinkCadillac XT5orXT6,or cash option of $900 a month.[27][28]The specific qualifications for earning the car depend upon the country, and vehicle that is desired. If those qualifications are not met, then the consultant has to pay for a portion of the lease of the car for that month. Meeting the qualifications entitles the consultant to pay no monthly lease and 85% of the car insurance, or a pre-determined cash compensation award.[29][non-primary source needed]In 2011, a solid blackFord Mustangwas introduced as an incentive.[30]In 2014, a black BMW was introduced in its place, although the pink Cadillac remains the top reward for those consultants whose units purchase over $100,000 or more of MK products at wholesale cost in a year.[31]

Consultants

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There are two ways for Mary Kay consultants to earn money in Mary Kay: recruiting and retail sales. Recruiting commission earnings reflects the commission and bonuses of 4, 9 or 13% that one earns from the wholesale purchases of MK products by their team or unit. Consultants may also earn a 50% gross profit on products they sell at full retail price. There is no tracking by the company of actual sales. The quoted figure of US$1,057.14 per year (2015) for the average consultant derives from dividing the annual wholesale sales by Mary Kay Inc., by the number of Mary Kay consultants.[10]

Based upon information supplied by Mary Kay (USA) to theFederal Trade Commission,[32]Mary Kay has a 68.6% per annum turnover rate. An 85% per annum turnover figure has been calculated, based upon the data supplied by Mary Kay (Canada).[33]This excludes individuals who earn a commission and are in the company for less than one year. It also excludes individuals who are in the company for more than one year but do not earn a commission check.

Each year the company holds an annual conference and seminar inDallas, TX.The conference consists of four consecutive events over two weeks.[34]

Research

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In 2023, Mary Kay announced a partnership with the European Society for Dermatological Research (ESDR), a non-profit, to create a grant program. The program will grant two scientists $20,000 to go towards research relating to skin health and diseases.[35]Mary Kay stated that the goal would be to treat people who suffer from skin and venereal diseases. Dr. Michael Cangkrama of Switzerland and Dr. Clarisse Ganier of the UK received the grant.[35]

Court cases

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Woolf v. Mary Kay Cosmetics

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The 2004 court caseWoolf v. Mary Kay Cosmeticsargued thatworkplace rightscould be applied to independent contractors who worked from their home. This decision was stayed and then reversed after an appeal. The Supreme Court deniedcertiorarion 31 May 2005.[36]In this case, Woolf was terminated from her position as Independent Sales Director because her unit failed to make production for three consecutive months. Woolf contended that her firing was illegal, because she was suffering fromcancer.[37]

Liquidator court cases

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In May 2008, Mary Kay, Inc., sued Touch of Pink Cosmetics, a website that sells product from former Mary Kay consultants at heavily reduced prices. The company claims that Touch of Pink interferes with its business by offering to purchase inventory from discontinued Independent Beauty Consultants, and that Touch of Pink's use of the Mary Kaytrademarkin reference to Mary Kay products it sells is deceiving.[38]The jury found in favor of Mary Kay and awarded a judgement of $1.139 million.[citation needed]

On 20 July 2009, Mary Kay, Inc., sued Pink Face Cosmetics fortrademark infringement.[39]The specific issue appears to be the use of the Mary Kay name, in selling Mary Kay products oneBayand other Internet venues for less than thewholesalecost of the products.[39]

References

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  1. ^"Mary Kay".Forbes.Archived from the original on April 21, 2022.RetrievedFebruary 12,2021.{{cite web}}:CS1 maint: bot: original URL status unknown (link)
  2. ^Mary Kay Company Quick FactsMary Kay Company Quick FactsArchivedFebruary 2, 2017, at theWayback MachineRetrieved 2017-01-28
  3. ^"Multi-Level Marketing or Illegal Pyramid Scheme?".Government of Michigan.Archivedfrom the original on February 8, 2020.RetrievedFebruary 7,2020.
  4. ^Richards, Laura (January 22, 2019)."How MLMs — multilevel marketing schemes — are hurting female friendships".The Washington Post.Archivedfrom the original on January 13, 2020.RetrievedFebruary 7,2020.
  5. ^Hicken, Melanie (January 10, 2013)."The money behind Herbalife, Mary Kay and others".CNN Money.Archivedfrom the original on January 13, 2020.RetrievedFebruary 7,2020.
  6. ^Ebert, Alex (April 30, 2018)."Trade Group for Amway, Mary Kay Wants States to Limit Labor Suits".Bloomberg Law.Archivedfrom the original on January 22, 2021.RetrievedFebruary 7,2020.
  7. ^Gaby, Del Valle (October 22, 2018)."Multilevel marketing companies say they can make you rich. Here's how much 7 sellers actually earned".Vox.Archivedfrom the original on May 11, 2020.RetrievedFebruary 7,2020.
  8. ^ab"Mary Kay CEO to step down, hand reins to grandson of Mary Kay Ash".Dallas News.November 1, 2022.RetrievedApril 17,2023.
  9. ^"Mary Kay | Company Overview & News".Forbes.RetrievedApril 5,2023.
  10. ^abcEdgar, Carol (April 1, 1979)."The Hot Pink Empire of Mary Kay Ash".Texas Monthly.RetrievedAugust 25,2023.
  11. ^Ballard, Moriah (March 5, 2024)."Women's History Month: Founder of Mary Kay Cosmetics was a Houston native whose legacy continues to empower others 💄".KPRC.RetrievedMarch 12,2024.
  12. ^"Mary Kay Ash".20th Century American Leaders Database.Harvard Business School.Archivedfrom the original on January 7, 2013.RetrievedOctober 20,2010.
  13. ^Camerius, James W.; Clinton, James W. (1993)."Avon Products, Inc: Developing a Global Perspective"(PDF).Washington, DC: Direct Selling Education Foundation. Archived fromthe original(PDF)on October 5, 2010.RetrievedOctober 20,2010.
  14. ^"Company Retrospective".Mary Kay (UK). Archived fromthe originalon December 26, 2007.RetrievedOctober 20,2010.
  15. ^abMaynard, Mark (January 19, 2019)."50th anniversary of the Mary Kay pink Cadillac".San Diego Union-Tribune.RetrievedOctober 26,2023.
  16. ^Hall, James (March 6, 2020)."Mary Kay blames 'market conditions' for closing Australian operation".new /au.
  17. ^Macdonald, Megan; Higgins, Kate (March 6, 2020)."MLM make-up brand Mary Kay announces exit from Australia and NZ, citing 'market conditions'".ABC News.RetrievedAugust 26,2022.
  18. ^"Mary Kay CEO to step down, hand reins to grandson of Mary Kay Ash".Dallas News.November 1, 2022.RetrievedJuly 6,2023.
  19. ^Seal, Mark (August 1, 1985)."The Pink People".Texas Monthly.RetrievedSeptember 30,2023.
  20. ^Olen, Helaine."Mary Kay Preys on Women".Forbes.RetrievedNovember 16,2023.
  21. ^Hollandsworth, Skip (November 1, 1995)."Hostile Makeover".Texas Monthly.RetrievedOctober 11,2023.
  22. ^Hicken, Melanie (January 10, 2013)."The money behind Herbalife, Mary Kay and others".CNN Money.Archivedfrom the original on September 24, 2019.RetrievedApril 12,2014.
  23. ^Hoopfer, Evan (November 5, 2018)."Take a look inside Mary Kay's new $100M DFW facility".bizjournals.Archivedfrom the original on May 9, 2022.RetrievedDecember 6,2021.
  24. ^"Hangzhou Mary Kay Cosmetics Co in Beauty and Personal Care (China)".marketresearch.Archivedfrom the original on October 1, 2021.RetrievedOctober 1,2021.
  25. ^Maynard, Mark (January 19, 2019)."50th anniversary of the Mary Kay pink Cadillac".San Diego Union-Tribune.RetrievedMarch 16,2023.
  26. ^Clanton, Brett (June 27, 2006)."Mary Kay Inc. Loves Cadillac, and the Feeling Is Mutual".The Ledger.Archivedfrom the original on March 28, 2019.RetrievedMay 21,2014.
  27. ^"Mary Kay Sales Director Earnings: Less Than Minimum Wage".Pink Truth.November 13, 2015.RetrievedApril 5,2018.
  28. ^Lopez, Jonathan (August 14, 2021)."Here's How Much It Costs To Get A Free Mary Kay Cadillac".GM Authority.Archived fromthe originalon August 15, 2021.RetrievedJune 2,2022.
  29. ^Brochure: Mary Kay Career Car Plan Guidelines — February 2005.
  30. ^"Ford Mustang revs up as Mary Kay's newest ride".leftlanenews.Archivedfrom the original on March 13, 2012.RetrievedApril 5,2018.
  31. ^Woodyard, Chris."BMWs joins pink Cadillacs in Mary Kay's fleet".USA TODAY.RetrievedMarch 16,2023.
  32. ^Mary Kay Letter to the FTC regarding proposed changes in the rules governing MLMs.ArchivedJuly 3, 2007, at theWayback Machine
  33. ^Mary Kay Canadian EarningsArchived2007-09-29 at theWayback Machine
  34. ^"Barbie pink gets Mary Kay competition as nearly 20,000 descend on Dallas".Dallas News.July 24, 2023.RetrievedSeptember 6,2023.
  35. ^ab"Mary Kay backs skin health research with $20k grant".cosmeticsbusiness.RetrievedNovember 16,2023.
  36. ^Order List:544 US
  37. ^"FindLaw's Court of Appeals of Texas case and opinions".Findlaw.Archivedfrom the original on October 1, 2021.RetrievedOctober 1,2021.
  38. ^Mary Kay Inc. v. Amy L. Weber, Scott J. Weber and Touch of Pink Cosmetics,601 F Supp. 2d 839(N.D. TexFebruary 20, 2009).
  39. ^ab"Mary Kay Suing Another Product Liquidator".Pink Truth.July 23, 2009.RetrievedApril 11,2018.



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