Move over, Avon; step aside, Mary Kay. An international sales force of women is growing. JAFRA (a combination of the first names of the company's founders -- couple Jan and Frank Day) manufactures high-end cosmetics, skin care products, and fragrances. It markets them internationally through some 570,000 independent beauty consultants spanning nearly 20 countries. Products include skin cleansers and lotions, mineral makeup, vitamin tablets, home spa sets, and nail polishes, as well as a variety of products for men, teens, and babies. The company, established in 1956 and once owned by Gillette, has been part of German direct sales company Vorwerk & Co. since 2004.
From its headquarters in California, JAFRA operates primarily in the US and Mexico with additional operations in the Dominican Republic, Germany, Brazil, Italy, Switzerland, Austria, the Netherlands, Russia, and India. It relies on distributors in North America, Europe, and South America to supply its beauty products to another seven countries.
JAFRA operates US-based research laboratories and a cosmetic-manufacturing facility in Mexico.
Sales and Marketing
JAFRA taps a direct sales force of some 570,000 consultants to sell its products and services. The consultants peddle products through one-on-one and small group environments and market them through websites, blogs, and social networking.
Direct sales company JAFRA contributes about 19% of Vorwerk's revenue.
During fiscal 2013, JAFRA sales slipped by 1%. The Mexico market and ongoing security concerns dragged down another year of noteworthy revenue results among its businesses in Russia and India.
JAFRA has worked in recent years to expand its operations across the US and worldwide. JAFRA's Mexico market delivers the largest portion of the company's revenue. Brazil is another promising market for JAFRA. The country represents the cosmetic industry's third-largest market behind the US and Japan, so it's no wonder that JAFRA is banking on its 190 million citizens for growth. It established an office in the tony city of Sao Paulo and partnered with the Shahra family's Ruchi Soya Industries Limited to sell its products directly to customers in the country. The venture, which operates under the name JAFRA Ruchi Cosmetics India Private Limited, is based in New Delhi and is focused on developing a presence in northern India.
Following security concerns in its largest market -- Mexico -- that most recently stalled revenue growth, JAFRA is concentrating on further developing its business in the US and in emerging markets such as Brazil, Russia, India, and Indonesia.
After seven years in development, the cosmetics company launched its Advanced Dynamics Skin Care in 2014. It's also adding men to the mix. JAFRA is working to expand its men's products portfolio by issuing the Legend for Men Adventure trademark to market a line of fragrances for men.
The company has been extending the reach of its operational footprint, as well. JAFRA maintains a 23-acre manufacturing complex in Mexico, which serves as its lead production base. The state-of-the-art plant cost $30 million to build in 2010 and has the capability to produce 200 million units a year.