Thaindian News

By Sakshi Gulati
New Delhi, May 31 (IANS) Swedish personal care company Oriflame plans to launch 25-30 products every month and engage 50,000 more people to tap the booming Indian cosmetics market, already a $5.4 billion industry growing at 12 percent per annum.

“In Asia, India is the most important market, besides China. In the coming year, I see it as the largest market for us. Our ultimate aim is that Oriflame should be a ‘must-have’ brand in India,” said Marcus Sandström, Oriflame India’s new managing director.

“We intend to make Oriflame number one beauty company in the country. We will launch 25-30 products across all categories every month and also take the number of consultants (salespeople) to 200,000 2 from the present 150,000,” Sandström told IANS.

According to him, Oriflame’s India operation-which has the same business model of direct selling, which that is employed in other markets-been growing at 40 percent, as opposed to the overall industry growth of 12 percent.

The country, thus, is its fifth largest market after Russia, Ukraine, Kazakhstan and Poland. Oriflame’s annual sales exceed $1.6 billion and 10 percent of that came from Asia.

“We will be opening one more office this year. The location has not been finalised yet. We are also looking at

relocating three offices as we need more space. We have already relocated our office in Kolkata,” said Sandström.

He said the permanent headcount of the company in India, which is headquartered in the national capital with 12 offices across the country, will also rise to 400 by December from the present 375. Nearly 95 percent of the company’s 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 our production facility in Noida, we also export a range of products like talc and lipsticks to other countries,” said the new chief of India operations, but added that the company had no plans to enter the retail segment.

“We are very much happy with the direct selling mode. The $730-milion direct selling industry in India is growing 20-30 percent and Oriflame is also growing,” Sandström added.

Asked about the new product lines the company proposed in India, Sandström said the focus will be on cosmetics. “For next two-three years, we have no plans to introduce a wellness range of products in Indian market.”

Oriflame India is also spending around $7.3 million on corporate social responsibility activities. It is in engaged in two projects here - “Deepalaya” and “Hand in Hand” for girl child development and self-help micro-finance projects for underprivileged women.

“Girl child development and women empowerment are the focus areas on our corporate social responsibility front,” said Sandström.