Headquartered in Addison (outside of Dallas), Texas, Mary Kay is a privately-owned cosmetic and fragrance direct-selling company. Mary Kay is the sixth-largest direct selling company in the world, with annual sales of about $3 billion. Mary Kay’s business model is similar to the Avon business model. Founded by Mary Kay Ash in 1963, the company is famous for its pink Cadillacs, given to high-selling representatives. Richard Rogers, Mary Kay’s son, is the chairman of the board. Mary Kay products are sold in more than 35 markets worldwide, and the global Mary Kay independent sales force exceeds 2.4 million women.
In 1968, Mary Kay Ash purchased the first pink Cadillac and had it repainted to match the Mountain Laurel Blush in the Mary Kay compact. Since the Cadillac program’s inception, more than 100,000 independent sales force members have qualified for the use of a Career Car or elected the cash compensation option. GM estimates that it has built 100,000 pink Cadillacs for Mary Kay. For 2012, high-sellers may select other Career Cars, including the Chevrolet Malibu, Chevrolet Equinox, Toyota Camry, and the Cadillac CTS, SRX, and Escalade Hybrid—or most recently, a black Ford Mustang.
Estee Lauder Companies, Inc.
Headquartered in New York City, Estee Lauder has sales of about $10 billion annually and income of about $1 billion. Estee Lauder manufactures and markets skin care, makeup, fragrance, and hair care products. The company’s products are sold in more than 150 countries and territories under a number of brand names, including Estee Lauder, Aramis, Clinique, Origins, M.A.C, Bobbi Brown, La Mer, and Aveda. The company is also the global licensee for fragrances or cosmetics sold under brand names, such as Tommy Hilfiger, Donna Karan, Michael Kors, Tom Ford, and Coach. The company sells its products at more than 30,000 points of sale, consisting of upscale department stores, specialty retailers, upscale perfumeries and pharmacies, and prestige salons and spas.