Top Companies Report

25. Jafra

June 28, 2012

Westlake Village, CA
805.449.3000
www.jafra.com
Sales: $611 million.

Key Personnel: Dr. Friedrich Kroos, president and chief executive officer, Jafra Cosmetics International; Hans ter Pelle, senior vice president and chief financial officer; Mari Loli Sanchez Cano, president, Jafra Mexico; Connie Tang, president, Jafra USA; Dr. Pragna Chakravarti, chief scientific officer.

Major Products: Royal Jelly, Dynamics and Time Dynamics skin care; color cosmetics; Jafra Spa; Jafra Men; men’s and women’s fragrances; Jafra body and sun care products.

New Products: Jafra Pro, Steel Bouquet Fragrance.

Comments: Jafra’s sales rose nearly 3% last year. The company has more than 550,000 consultants worldwide. Mexico is far and away Jafra’s biggest market, with the US a distant No. 2. The company has operations in 17 countries overall.

Although Mexico is the firm’s biggest market, sales there fell 2.7% last year to approximately $476 million. Still the company notes that the modest decline is remarkable when one considers that the average income of a Mexican household fell 12.3% from 2008 to 2010. At the same time, consumers are becoming concerned about the deteriorating security situation in some parts of the country, which makes it particularly treacherous for a direct-selling firm such as Jafra.

Meanwhile, sales in the US totaled $71.4 million.

The company is excited about its prospects in Brazil, which is the world’s third largest market for direct sales of cosmetics and the largest consumer of cosmetics in Latin America. Last year, sales in Brazil rose 44% to more than $19 million. Jafra entered Brazil about four years ago.

The company said that Europe is making somewhat of a comeback with sales in Germany, Austria and the Netherlands rising a bit, while sales in Italy and Switzerland remained flat.

Elsewhere sales in Russia and India soared, but the gains were off very low sales. Still, the company is confident that these countries and Asia offer growth opportunities.

The company is particularly bullish about Jafra Pro, which it calls the next generation of skin care. Launched nearly a year ago in Mexico, the US, Germany, Austria and the Netherlands, Jafra Pro is expanding to the rest of the world in 2012. The product contains seven botanical ingredients (sea mayweed, licorice, papaya, oat, arnica, vitamin B3 and licorice derivative) to deliver a calming effect on the skin. In addition, these ingredients help hydrate skin, even the complexion, reduce the appearance of lines and wrinkles and enhance facial contour lift and cushioning.


 

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