Mary Kay

Foundation–2000

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

2001–present

Founder Mary Kay Ash died on November 22, 2001. In March 2020, the company closed operation in Australia and New Zealand. 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. In November 2022, Ryan Rogers was named CEO.

Business model

Mary Kay sells cosmetics through a direct marketing model. Mary Kay consultants, called beauty consultants, can make income by directly selling to people in their community, and also receive a commission when they recruit others to begin selling under their distribution network. Mary Kay releases few details about the average income of its sellers.

Manufacturing plants

The company's primary manufacturing plant is in Dallas, Texas. A second plant was opened in Hangzhou, China, to manufacture and package products for that market. A third plant was opened in 1997, in La Chaux-de-Fonds, Switzerland for the European market. The Swiss plant closed in 2003.

Research

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. 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.

Court cases

Woolf v. Mary Kay Cosmetics

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. 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.

Liquidator court cases

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. 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. 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.