Oriflame group records 44% growth in Asia

Asia - fastest growing region:

By Surekha Galagoda

[email protected]

The Asian region is the fastest growing region at 44 per cent for the Oriflame group and Sri Lanka is one of the countries that is driving this growth, said MD Oriflame Lanka (Pvt) Ltd, Per Gunnarsson.

He said that Oriflame Lanka (Pvt) Ltd, a BOI approved company incorporated in 1997, the pioneers in the Direct Selling/multilevel marketing industry has had a commendable development specially in the past three years and the company has been able to double its size every other year.

According to the third quarter financial report, the company has had a 32 per cent growth in sales while the year to date growth is 26 per cent or 935mln Euros. Globally we will end the year on a positive note recording good growth levels.

He said that in 2007 the company passed the milestone of achieving one bln Euros in sales and it is predicted that it will take only another five years to reach the next bln.

The company has recorded an organic growth for 39 years and never bought other companies.

During the past ten years Oriflame Lanka (Pvt) Ltd, a subsidiary of the Oriflame Group which is listed on the Nordic stock exchange has been extremely successful in offering thousands of Sri Lankans a great income earning opportunity and high quality natural Swedish beauty products in keeping with the promise of the founders.

It is one of the fastest growing beauty companies selling direct in the world and at present counts over 2.6 million beauty consultants spread over 61 countries with over 7000 employees.

Business plan

Gunnarsson said that the new business plan was launched in February 2008 with more rewards to encourage and motivate the consultants, but high ethics have to be maintained at all times. He said that the highest level reached by a Sri Lankan is Diamond director and she has received Rs. 1.6 mln in cash awards while her annual income is Rs 4,700,000.

The biggest market for Oriflame is Russia and a woman who joined approximately 10 years ago is today a Sapphire President Director.

She has received Rs 40 mln as cash rewards while Rs 50-60 mln is her average annual income.

This is proof that anybody can reach this level and the only qualifications needed are a big heart and a focused mind.

Among the consultants of Oriflame are doctors, lawyers, teachers as well as housewives and most importantly men who have given up careers to become Oriflame consultants, said Gunnarsson.

As promised by the founders we at Oriflame want to make the lives of people better everyday in keeping with our theme “make money today and fulfil your dreams tomorrow.”

In Sri Lanka, the company offers around 700 products in toiletries, fragrances, skincare, colour cosmetics and accessories covering everything from head to toe except for hair removing creams and hair dyes while worldwide Oriflame has a portfolio of over 1,100 products.

The company manufactures its products in five manufacturing locations in Sweden, China, India, Poland and Russia, while a team of over 100 persons are engaged in Research and development mainly at the factory in Sweden.

To develop a new product it takes more than five years of hard work and the R&D team certifies that all Oriflame products go through stringent checks, is of the highest quality, it fulfils the objectives for which it was manufactured,fulfils the objectives of the company and the globe and has the right packaging.

Multilevel marketing

Oriflame products are special as all are made out of natural products, 100% guaranteed, animal friendly (as none of the products is tested on animals) respects mother nature, ability to recycle, cares for the society and it is a direct sales company.

Multilevel marketing is a popular way of retailing in which consumer products are sold, not in stores by sales personnel, but by independent businessmen and women (distributors), usually in customers’ homes.

As a distributor you can set your own hours and earn money by selling consumer products supplied by an established company.

In a multilevel structure you can also build and manage your own sales force by recruiting, motivating, supplying and training others to sell those products. Your compensation then includes a percentage of the sales of your entire sales group as well as earnings on your own sales to retail customers.

This opportunity has made multilevel marketing an attractive way of starting a business with comparatively little money.

Multi level marketing/Direct selling is an accepted method of selling all over the world, other direct selling companies existing in the US and Europe include Avon, Herbalife, Nuskin and Amway.

These companies are not Pyramid Schemes. Pyramids Schemes are illegal and banned in many countries, he said.

Oriflame is also a member of the World Direct Selling Association and one of the co-founders of World Childhood Foundation, an organisation that helps improve the living conditions for under-privileged children around the world and Livslust - both under the patronage of Queen Silvia of Sweden. The company is continuously developing the social compliance program with the goal of becoming even better corporate citizens.

Profile

Founded in 1967 in Sweden by the brothers Jonas af Jochnick and Robert af Jochnick, the company sells skin care, cosmetics and other related products. The two brothers were working in different companies, they both wanted to start a business which will have a huge impact on society.

The direct selling method was catching on. During this period cosmetic shops in Sweden were one person operations and customer care was not so good. They decided on cosmetics and wanted it to be sold among friends. In three months they were able to get the product line which includes Tender care and the Royal Velvet day lotion which are still among the product portfolio.

The company was set up with 100,000 Swedish croner (Rs 1.6 mln). Oriflame then expanded and had its first UK Consultant in 1970.

Following this Oriflame Ireland opened as a licensee in 1972. Oriflame published their catalogues in the UK for the first time in 1988. The company then expanded and in 2006 when Oriflame UK and Ireland became part of the Premier Direct Group.

Oriflame background

The name Oriflame has a historical reference dating back to the 15th century France. It was the royal banner that the French kings displayed when they were at war and the two brothers felt it was quite inspirational as they knew that the company would have to go through a lot of battles and thought that the Oriflame would protect the company.