Mary Kay
Mary Kay Inc. is an American privately owned multi-level marketing company.[3][4][5][6][7] Mary Kay is based in Addison, Texas. The company was founded by Mary Kay Ash in 1963. Richard Rogers, Ash's son, is the chairman, and Ryan Rogers, Ash's grandson, was named CEO in 2022.[8][9][10][11]
For the Greek landscape photographer, see Mary Kay (landscape photographer). For the American actress, see Mary Ellen Kay. For the guitarist and performer, see Mary Kaye.Company type
Addison, Texas, U.S.
- Richard R. Rogers, Executive Chairman
- David Holl, Chairman
- Ryan Rogers, CEO
- Deborah Gibbins, Chief Financial Officer
US$2.7 billion (2022)[1]
Staff 5,000
Salespeople 3.5 million worldwide (2015)[2]
History[edit]
Founded - 2000[edit]
In 1963, Mary Kay Ash founded the company based on a line of cosmetics she had been wearing for several years.[12][13] She purchased the formula from a woman who had been selling it privately.[12] Originally the company had 318 consultants and sales of $198,154.[14] By 1991, it exceeded $500 million in sales through 220,000 consultants.[15] In 1995, its sales had grown to $950 million.[16]
2001 - present[edit]
The founder Mary Kay Ash died on November 22, 2001.[17] In March 2020, Mary Kay closed operation in Australia and New Zealand.[18][19] In November 2022, David Holl, the company’s CEO since 2006, retired after nearly 30 years with the company but remained chairman of the board.[8] In November 2022, Ryan Rogers was named CEO.[20][21]
Consultants[edit]
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.[12]
Based upon information supplied by Mary Kay (USA) to the Federal Trade Commission,[34] 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).[35] 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 in Dallas, TX. The conference consists of four consecutive events over two weeks.[36]
Research[edit]
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.[37] 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.[37]
Court cases[edit]
Woolf v. Mary Kay Cosmetics[edit]
The 2004 court case Woolf v. Mary Kay Cosmetics argued that workplace rights could be applied to independent contractors who worked from their home. This decision was stayed and then reversed after an appeal. The Supreme Court denied certiorari on 31 May 2005.[38] 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 from cancer.[39]
Liquidator court cases[edit]
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 Kay trademark in reference to Mary Kay products it sells is deceiving.[40] The jury found in favor of Mary Kay and awarded a judgement of $1.139 million.
On 20 July 2009, Mary Kay, Inc., sued Pink Face Cosmetics for trademark infringement.[41] The specific issue appears to be the use of the Mary Kay name, in selling Mary Kay products on eBay and other Internet venues for less than the wholesale cost of the products.[41]