Yanbal FS

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References

http://www.yanbal.com/global/home/selectcountry

Profile

Yanbal was founded in Lima, Peru in 1967. The Founder and President of Yanbal International, Fernando Belmont, had the dream to create a direct selling company, that would allow the latino women to progress, and reach their dreams and goals. To name the company, Belmont was inspired by his 2 year old daughter Janine. Janine’s nick name was “Yan Bal” ; “Yan” because of Janine (pronounced Ya-nyn) and “Bal" due to the feminine way of her last name Belmont. [1]

Fernando was inspired by the talent, passion and strength of women, and so he made women ​​the heart and soul of his company. Corporación Yanbal International is a company that manufactures and sells cosmetics and personal care products. They produce products for facial and personal care, makeup, fragrances and bijouterie.The company’s mission is to enhance the quality of life for the Latin American woman, not only by providing high quality products, but by creating a “multi-level” business structure that will allow women from any social class to sell the product and be able to prosper [2]With the Avon-style door-to-door model, Yanbal uses both door-to-door sales people (Like the "Avon ladies" primarily, and as well as some men) and brochures to advertise its products. [3] Like Avon, it operates training centers for potential representatives. Yanbal uses multi-level marketing to recruit sales representatives, who both sell the beauty products and recruit more representatives.Each representative is considered an independent, running her or his own business.

Yanbal’s biggest competitors on selling cosmetics are Belcorp, owned by Fernando’s brother Eduardo Belmont. Belcorp had revenues of around $2 billion while Yanbal reached around $720 million. [4]

Analysis

Around 1967 Peru’s economy was not thriving. There was a high rate of unemployment because of the lack of international and local investment. In addition to this, the government invested in public infrastructure but was forced to raise taxes, impoverishing the population even more. In my opinion, by seeing this Fernando Belmont saw an opportunity to help people get out the poverty trap. With such a crisis everyone had to look for job opportunities, and why not help promote women empowerment in a society that was not doing well on that either.


In South America, Yanbal is perceived as a strong company that gives opportunities to progress to any one who is committed to it. The quality of their products is good, and their prices are reasonable. It is well positioned and has the uniqueness of their business model that is so appealing for people of all ages to work and make the profits they set as a goal. The products are sold in Peru, Colombia, Ecuador and Bolivia in rural and urban areas. Sales people are likable and sell the products as if it was their own business due to their multilevel model. In my opinion the downfall of their model is that it can get stagnate if the networks get saturated. People can only buy an x quantity of perfume, there can only be an x amount of sales people in a place making it difficult to expand and if the sales person cannot expand her or his network the business is over.