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    Top Companies Report

    9. Mary Kay

    ...

    9. Mary Kay
    Mary Kay
    07.01.15
    Addison, TX
    972.687.6300
    www.marykay.com

    Sales: $4 billion.

    Key Personnel: Richard R. Rogers, executive chairman; David Holl, president and chief executive officer; Sheryl Adkins-Green, chief marketing officer; Thomas S. Cho, chief supply chain officer; KK Chua, president, Asia Pacific; Tara Eustace, president, Europe; Deborah Gibbins, chief financial officer; Melina Foster Sellers, chief people officer; Kregg Jodie, chief information officer; Darrell Overcash, president, North America; Jose Smeke, president, Latin America; Terry Jacks, vice president, research and development.

    Major Products: Skin care, color cosmetics, body care, sun care and fine fragrances marketed under the Mary Kay and TimeWise brand names.

    New Products: Mineral Cheek Color Duo; Beauty That Counts lipgloss; Mary Kay at Play Lip & Cheek stick, Baked Eye Trio, Jelly lip gloss.

    Comments: While its direct sales competitors stumble, 2014 marked another year of double-digit gains for privately-held Mary Kay. The company boasts 3.5 million representatives around the world, at a time when many direct sales companies are struggling to maintain their sales base. How? By developing product lines such as Mary Kay at Play that appeal to Gen Y consumers, and by offering novel anti-aging formulas to Baby Boomers via the Time Wise collection.

    Earlier this year, the company filed suit against Google Ventures-backed RetailMeNot, a user-generated coupon site that dominates search rankings for coupon searches. Mary Kay went to court noting that it doesn’t sell directly to the public, nor does it offer deals or coupons. Mary Kay lawyers maintain that RetailMeNot’s presentation of Mary Kay coupons misleads consumers and harms the brand and its relationship with its independent consultants. Last year, RetailMeNot claimed more than 450 million consumer visits to its sites.

    In May, Mary Kay entered its newest market, Colombia and its products are now available in more than 35 countries, including Mexico, Brazil and Argentina. 

    Last month, The Direct Selling Association (DSA) inducted Michael Lunceford, senior VP-public affairs for Mary Kay Inc., into its Hall of Fame. Lunceford was honored for his substantial contributions to the DSA, the Direct Selling Education Foundation and the direct selling industry over a more than 30-year career. Lunceford is the fourth executive from Mary Kay to be inducted into the DSA Hall of Fame. Past inductees include Mary Kay Inc. founder Mary Kay Ash in 1976, Monty Barber in 1988 and former Mary Kay vice chairman Richard C. Bartlett in 1994.

    Through the Mary Kay Foundation, the company has been a big supporter of ending women’s cancers and domestic violence. Trough the years, the Foundation has awarded more than $17 million to cancer researchers and $37 million to shelters and programs.

    Also last month, the company retained CBRE, the world’s largest commercial real estate services and investment firm, to explore future options for the company’s global manufacturing and research and development (R&D) facility located in Dallas. The analysis by CBRE will provide insight and analysis for Mary Kay Inc. as the company considers updating its existing operation or building a new facility to house both manufacturing and R&D. 

    “Approximately 75% of our business is overseas today and yet more than 50% of Mary Kay products produced at the Dallas manufacturing facility are exported to our international markets,” said David Holl, president and chief executive officer for Mary Kay Inc. “As we approach the status of a top five beauty brand globally, it’s essential that we continue to have state-of-the-art manufacturing and research and development facilities to produce the highest quality skin care and color cosmetics for our more than 3.5 million independent sales force members worldwide.” 

    Mary Kay’s current global manufacturing facility opened on Regal Row in Dallas in 1969. Today, the 420,000-square-foot facility produces up to 1.1 million units of made-in-America products per day, of which 57% are exported to Mary Kay Inc.’s international markets. As CBRE completes its analysis, construction sites for a possible new facility will be considered in the Dallas/Fort Worth area. 

    “Whether we update our current Regal Row facility or explore options to build a new one, our investment could range from $80 to $100 million,” said Holl. “As we have been for more than 50 years, Mary Kay is committed to ensuring that our products consistently meet or exceed consumer expectations. The analysis from CBRE will help point us in the right direction as we continue to provide best-in-the-industry products to our Mary Kay brand lovers worldwide.” 

    Following the completion of CBRE’s analysis, Mary Kay Inc. is expected to make a decision regarding the manufacturing and research and development facility by the end of 2015. 

    Mary Kay Inc. employs approximately 600 manufacturing and R&D employees in Dallas. 
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