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Vorwerk & Co. KG (JAFRA Cosmetics)

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Score Breakdown

  • Value to You: 00000
  • The Brand: 00000
  • The Team: 00000
  • The Frontline: 00000
  • Resilience: 00000

Company Snapshot

  • Product(s): household appliances as well as high-quality cosmetics
  • Marketing Style: party plan and person-to-person
  • Compensation Plan: Multi-level
  • Year Founded: 1883
  • Corporate Revenue: $3.4 billion
  • Markets: 61
  • Distributors: 530,000
  • Employees: 23,000
  • Headquarters: Wuppertal, Germany
  • Website: http://www.vorwerk.com/

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Vorwerk & Co. KG (JAFRA Cosmetics) is a $3.4 billion company that specializes in household appliances and high-quality cosmetics to be sold in a party plan and person-to-person marketing styles.

Vorwerk was founded in 1883 by Carl and Adolf Vorwerk under the name Barmer Teppichfabrik Vorwerk & Co. in Wuppertal, Germany.  The family-owned business has focused on the direct selling channel since 1930.  The steady growth in business volume received an additional boost with the purchase of Jafra Cosmetics in 2004.  The first full year with Jafra brought a new record turnover of almost 2.2 billion Euros, an increase of 5% over the previous year.  The share of business volume outside of Germany is given as 56%.  JAFRA Cosmetics has a reported sales volume of $602 million in 2008.

According to Jafra’s web site, the company is “inclined toward natural ingredients and resources, JAFRA embraces ecologically-friendly product formulations and strives to work with environmentally responsible companies.”  They also state that research & development as well as staying on top of “state of the art” manufacturing equipment.

HOW IT WORKS:

Jafra Cosmetics products are to be sold in a party plan style in the United States and Mexico.  In countries such as Austria, Brazil, Dominican Republic, Germany, Italy, Mexico, the Netherlands, Russia, Switzerland, and the USA, Jafra has it’s own companies to manage product sales. In many other countries, where JAFRA Cosmetics does not have its own companies, their products are sold via distributors.

Jafra Cosmetics employs over 23,000 people and has 558,000 distributors.

Average start up cost: $30.00 (starter kit)

 

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