Oriflame’s India plans

Swedish personal care company Oriflame plans to launch 25 to 30 products every

month and engage 50,000 more people to tap the booming Indian cosmetics market, already a $5.4 billion industry and growing at 12 per cent per annum. Oriflame’s India operation, which has the same business model of direct selling as in other markets has been growing at 40 per cent as opposed to the overall industry growth of 12 per cent. The country, thus, is its fifth largest market after Russia, Ukraine, Kazakhstan and Poland. Oriflame’s annual sales exceed $1.6 billion and 10 per cent of that comes from Asia.

The company has 12 offices in India. Nearly 95 per cent of the sales team comprises women. Oriflame has a total of five global production facilities, of which three are in Europe, and one each in India and China. From the production facility in Noida, a range of products like talc and lipsticks is exported. However, Oriflame has no plans of entering the retail segment and plans to stick to the direct selling mode. The $730 million direct selling industry in India is growing at 20 to 30 per cent. In India Oriflame spends on corporate social responsibility activities and is engaged in self-help micro-finance projects for underprivileged women.