India among the priority markets: the Swedish beauty brand Oriflame

India is one of the “priority markets” for Swedish beauty brand Oriflame, which it sells directly, where it expects to continue its double-digit growth over the next 3-5 years, a senior company official said.

The company that sells cosmetics and wellness products in India also expects double-digit growth in its sales force, adding more direct sellers in the coming years.

In the midst of the COVID-19 pandemic, Oriflame has seen a resurgence of the wellness products business, contributing about 20% of its business in India compared to the previous 4%, and expects this trend to continue with some small corrections. .

“We expect to continue double-digit growth over the next 3-5 years and I don’t see it as a big challenge,” Frederic Widell, Vice President & Head of South Asia & MD, Oriflame India, told PTI.

The company will continue to grow here for the next few decades due to the growing population and will continue to invest in India and build the business, he added.

“One of Oriflame’s priority markets is India,” he said

Wiwell said that although India’s growth slowed in the last two years of the pandemic, his company managed to ensure an increase in profitability.

Asked about the ranking of the Indian market in Oriflame’s global business, he said: “It’s number one or two.”



“It depends. It’s between India and China. Both markets are neck to neck and are almost the same size,” Widell said.

In addition to Indonesia and Turkey, Mexico and Poland are the other main markets for Oriflame globally.

Net sales of Oriflame Holding AG for 2021 were € 1,016.5 million (over Rs 8,400 crore).

Wiwell refused to share the Indian entity’s revenue, but said the company is experiencing “very solid growth” in the country.

Oriflame entered India in 1995 and was among the first direct selling companies here.

“We have been here for 26 years and are very happy with the progression of our business here,” he said, adding, “we now have good experience, understand the country and have relevant products.”

At the moment, 95% of Oriflame’s sales in India come from online platforms via apps and websites, and for this reason the company has now decided to close many of its offices in the country. The company has offices only in selected metropolitan cities.

“Instead of paying the owners that money, we are now investing that money in digital tools and product development. We had 20 offices and now we only have five,” he said.

Oriflame has nearly 3 lakhs of direct sellers working with the company, which helps drive traffic to the company’s website. About 80 percent of them are female.

“Many of these people (direct sellers) order from the website and deliver to customers or order for customers. Every business goes through the direct seller,” he said, adding that there is always a brand partner involved in generating a customer.

Oriflame has two manufacturing plants in the country, Noida and Roorkee, and 80% of their production is destined for the domestic market. The remaining 20% ​​is exported to other markets of the Swedish beauty brand.

Wiwell also welcomed the government’s move to notify Consumer Protection (Direct Selling) Rules, 2021 banning the promotion of pyramid schemes and money circulation in the industry.

“This is good for the industry,” he said, adding that there is clarity for the industry and the legitimacy has been extended to the direct selling industry.

According to Widell, many young people are now opting for direct selling as their career as the industry offers job flexibility.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a distributed feed.)

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