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Monday, Mar 18, 2024

COSMETICS—Cosmetics Maker Seeks Key to Growing Latina Market

At first, executives at Jafra Cosmetics International Inc. thought all they had to do to reach the Latino market was translate their marketing materials into Spanish. But it soon became clear that language wasn’t the only barrier. Hispanics prefer different cosmetic products than those favored by the general market. They are attracted to different packaging and they even want different catalogs to select from. The Latinos who sell Jafra products too had distinct needs when it came to training and even sales incentives. “We were taking everything for the Anglo market and translating it,” said Beatriz Aguirre-Gutai, general manager of Jafra’s Hispanic division. “You can’t just translate. You have to adapt.” That’s why Westlake Village-based company late last year restructured its organization, creating two distinct divisions. Aguirre-Gutai was named general manager for the Hispanic division and Dyan Lucero was named to the same post for the general market. Cosmetics marketers like Procter & Gamble have long known that Latinas buy more cosmetics than the general population. But Jafra, with estimated sales of $326 million worldwide, had other reasons to revamp its organization structure. The company’s mode of distribution it sells to a network of independent contractors who then retail to consumers using door-to-door, office and party sales techniques is heavily reliant on the Latino community, particularly newer immigrants. “Bell ringing is probably bigger with ethnic groups than with Caucasians, and it’s probably more successful, especially if you’re talking Hispanic or Vietnamese. Whoever is ringing that bell is speaking the home language,” said Marlene Eskin, president and publisher of Market View, a cosmetics industry newsletter and Web site. Unlike the general market, where consumers are comfortable buying online, from catalogs or in retail shops where the sales personnel may change from day to day, Latinos prefer face-to-face interactions with people they know. “Hispanics have a penchant for relationship-based life,” said Carlos Garcia, president of Garcia Research Associates Inc., a Burbank-based market research firm that specializes in the Hispanic market. “They want to know their doctor. They want to know the guy who does their taxes. It’s a very Hispanic cultural value.” New owners see promise When Jafra’s current owners acquired the company from The Gillette Co. in April 1998, its largest market was in Mexico. Meanwhile, U.S. sales languished. However, Jafra officials realized 60 percent of U.S. sales were to Latinos. “We saw no differences (in the U.S.) from the Mexican market, so we decided to have two general managers to exploit all the opportunities we have on the Hispanic side,” said Gonzalo Rubio, president and chief operating officer of Jafra. Company officials did in fact begin by translating the company’s marketing materials into Spanish. But they soon realized bilingual sales materials weren’t going to be enough. For one thing, the company found that the rate of purchasing certain products was much higher for Hispanics than otherwise. “In the general market, it’s skin care (that sells best),” said Aguirre-Gutai. “In the Hispanic market, it’s fragrance and color.” Latinos also showed a decided preference for the gift tins that Jafra used to package its fragrance sets. Most customers didn’t like the tins. And at holiday time, Latinos wanted two separate catalogs coming to their houses at different times. The general market was able to get by with one. In addition to the management changes, Jafra decided to increase its marketing expenditures in the U.S. by allocating another $5 million to the market, Rubio said. The Hispanic division began putting extra emphasis on the fragrance and color line, creating specific promotions in those product categories. “The general market isn’t even going to feature those promotions in their catalog,” said Aguirre-Gutai. Just the beginning Down the road, Jafra executives say, the company may even develop different products for the Latino market as well. Latinas have the same skin types found in the general market and do not require different formulations in those products, but they tend to prefer deeper, more vibrant colors in lipsticks and eye shadows, Aguirre-Gutai said. At the same time, the Hispanic division is now better able to cultivate its own group of consultants because it can develop distinct sales programs and incentives for Latinos. Door-to-door selling has fallen out of favor as a career path for most people, now that more opportunities are available to women. Competitors with similar multi-tiered marketing organizations like Avon Products Inc. and Mary Kay Inc. have been expanding into online and retail sales techniques as a result. But door-to-door selling is still an ideal way to reach Latino customers. About three out of every five of Jafra’s consultants in the U.S. are Latinas, who often sell within the communities in which they live. Many are attracted to these positions because they don’t require English language skills or formal education. Some become consultants because they are able to choose their own hours, allowing them to give priority to raising a family. Vilma Campos is a case in point. She began selling Jafra when her first child was born and has since put both her children, now teenagers, through private school. The business has grown so large that her husband joined her several years ago, handling administration and deliveries. “Jafra has given me my family,” Campos said. “We go 50-50 with the kids, and there’s always someone home.” Consultants start out by buying a $35 sample case which they use for home demonstrations. As the business grows, they recruit other consultants and receive commissions off those sales as well, ultimately rising to district director level where sales incentives may include vacations and cars. Jafra provides ongoing seminars covering such topics as finance and product information. When both groups of consultants attended meetings together, the company provided simultaneous translation. But the bilingual approach often became unwieldy. Now Jafra will begin holding separate meetings. The company can also develop distinct incentive programs for its Latino sales people, who often have different preferences regarding the locales they want to visit for vacations, for example. Officials said they expect the changes to have a dramatic effect on the company’s sales. Although company officials were reluctant to talk about specific sales projections, Aguirre-Gutai said, “This year we’re going to end up OK. Next year, we’re going to explode.”

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