Mecca (cosmetics) explained

Mecca
Type:Private
Industry:Retail
Founded: in South Yarra, Australia
Founder:Jo Horgan
Hq Location City:Richmond, Victoria
Num Locations:100+
Num Locations Year:2023
Num Employees:4000+
Num Employees Year:2019

Mecca is an Australian cosmetics retailer. The company was founded by Jo Horgan in 1997. There are over 100 Mecca stores across Australia and New Zealand, in addition to an online store.

History

Mecca was founded in 1997 when Jo Horgan, then 29 years old, used the funds from the sale of her house to open the company's first store in the Melbourne suburb of South Yarra.[1] The company launched with seven brands unavailable in Australia including NARS, Stila and Vincent Longo.[2] [3] In its first four years, the business lost money.[4]

Mecca launched its online store in 2001.

In 2017, Mecca discontinued its Kit beauty product brand and closed its related stores.[5] [6] The same year the company launched its Mecca Max brand. In 2018, the company held its first Meccaland, a three-day beauty festival.

In late 2019, the company faced allegations of discrimination, bullying and favouritism from some former and current employees. The company pledge to make changes, including establishing a complaints hotline and appointing an external culture specialist.[7]

In August 2020, Mecca began selling into China through the ecommerce platform Tmall Global.[8] In July 2021. the company launched a podcast called Mecca Talks.[9] In August 2022, Mecca relaunched its Kit brand as a gender-neutral, plant-based skincare range.

In 2023, an independent review commissioned by the company found that 1600 current and former employees had been underpaid between July 2016 and July 2022 and were owed a combined total of about $560,000. The company paid back the employees.[10]

In June 2023, Mecca expanded to the UK by selling its best-selling product, the To Save Face SPF50+ Superscreen, on its UK website.[11]

Operations

Horgan leads the business with her husband Peter Wetenhall who is co-owner and co-chief executive. The company's headquarters and support centre is located in Richmond.[12]

Most of the brands Mecca stocks are exclusive to the company.[13] Mecca manages sales, marketing and distribution for its brands. Mecca's private label brands are Mecca Cosmetica, Mecca Max, Kit and Mecca-ssentials.

There are over 100 Mecca stores across Australia and New Zealand. Mecca has three types of stores: Mecca Cosmetica, the original prestige boutique concept; Mecca Maxima, aimed at younger consumers; and Mecca, which combines both concepts. Additionally, Mecca has concessions in seven Myer department stores, as of 2023. Some Mecca stores also offer services such as ear piercing, facials, injectables, brow shaping and blow dries.

The company has over 4000 employees.[14] Staff receive 200 hours of training in their first year. Meccaversity—the company's beauty education portal—was developed and launched for employees in May 2020 and later opened up to customers.[15]

Mecca's loyalty program is called Beauty Loop. It has over 4.3 million members, as of 2020.[16]

References

  1. Web site: Mitchell . Sue . 6 August 2019 . Jo Horgan, the accidental cosmetics queen . 24 February 2024 . Australian Financial Review . en.
  2. Web site: Traill-Nash . Glynis . 24 October 2023 . How Mecca Dominates the Australian Beauty Market . 25 February 2024 . The Business of Fashion . en.
  3. Web site: Rippon . Remy . 6 April 2018 . Mecca Cosmetica's Jo Horgan on the business of beauty and being at the helm of a multi-million dollar operation . 25 February 2024 . Vogue Australia.
  4. Web site: LaFrenz . Carrie . 30 November 2023 . Rich Lister Jo Horgan's Mecca spits off $12 million dividend for 2022 . 24 February 2024 . Australian Financial Review . en.
  5. Web site: Joyce . Emma . 2 August 2022 . After Five Years, Australian Beauty Brand Kit Is Back with a New Look and Gender-Neutral, Plant-Based Products . 24 February 2024 . Broadsheet . en.
  6. Web site: Hui-Miller . Jo-Anne . 16 August 2022 . "Think lab coat meets nature": Mecca reimagines long-lost sister brand Kit . 24 February 2024 . Inside Retail Australia . en-US.
  7. Web site: Powell . Dominic . 17 November 2019 . 'It's all fake': Beauty giant Mecca facing bullying claims . 24 February 2024 . The Sydney Morning Herald . en.
  8. Web site: Sams . Lauren . 18 August 2020 . Mecca makes play for Chinese market . 24 February 2024 . Australian Financial Review . en.
  9. Web site: Abaño . Joyce . 22 July 2021 . Listen up: Why Mecca is tuning in to the world of podcasting . 25 February 2024 . Inside Retail Australia . en-US.
  10. Web site: Koehn . Emma . 23 March 2023 . Beauty retailer Mecca discovers it owes staff $560,000 . 24 February 2024 . The Sydney Morning Herald . en.
  11. Web site: Conti . Samantha . 16 June 2023 . Australia's Mecca to Debut in Europe With Bestselling SPF Cream . 24 February 2024 . WWD . en-US.
  12. Web site: Xidias . Angelica . 19 July 2023 . Office tour: inside Mecca's functional and light-filled support centre . 24 February 2024 . Vogue Australia.
  13. Web site: Sams . Lauren . Sprague . Julie-anne . 4 June 2021 . How two Melbourne entrepreneurs stole the beauty market . 24 February 2024 . Australian Financial Review . en.
  14. Web site: Powell . Dominic . 17 November 2019 . 'It's all fake': Beauty giant Mecca facing bullying claims . 24 February 2024 . The Sydney Morning Herald . en.
  15. Web site: Hui-Miller . Jo-Anne . 17 September 2021 . Class is in session: Get schooled on skincare at MECCAversity . 24 February 2024 . Inside Retail Australia . en-US.
  16. Web site: Murphy . Paige . 27 November 2020 . RESET - MECCA founder Jo Horgan on the brand's most powerful marketing lever - AdNews . 24 February 2024 . www.adnews.com.au . en.