Jamie Matusow, Editor10.01.14
Sweden
www.oriflame.com
Beauty Sales: $1.9 billion
Key Personnel: Magnus Brännström, chief executive officer and president; Thomas Ekberg SVP Global Business Area Asia, The Middle East and Africa; Sergei Kanashin SVP and head of Latin America; Henrik Johannesson VP & head of Africa; Niklas Frisk, VP and head of South Asia and MD India; Neil Holden VP packaging development and NPD Process; Dr. Alain Mavon, skin research director; Johan Rosenberg, executive vice president, global marketing and R&D.
Major Products: Mass market and premium direct-sell Skin Care, Color Cosmetics, Fragrance, Personal Care, Hair Care, Accessories and Wellness.
New Products: The One by Oriflame makeup, HairX TruColour, Ecollagen, Vivacity Eau de Toilette, Triple Core 3D Lipstick, Giordani Gold Lash Panorama Mascara.
Comments: Globalization has at least prevented companies from “putting all their eggs in one basket,” especially as the Russian market is key to Oriflame, accounting for more than half of its overall business. Weak demand there, as well as in the Ukraine and EMEA countries—as well as a drop in consultants—put a damper on Oriflame sales in 2013. But there were some bright spots, too. Africa and Turkey delivered strong sales growth. Sales in Latin America rose 15%. In Asia, sales rose more than 10% due to Indonesia, India and Pakistan. And the Swedish beauty direct seller entered Myanmar, Nigeria and Tunisia during the year. All in all, annual sales hit $1.9 billion.
In 2013, the number of visitors to Oriflame’s websites continued to rise. More than 90% of all orders were placed online, and consultants made good use of supportive online tools.
Personal Care and Hair Care had a challenging year, largely due to competition from low-priced and heavily discounted products in the retail channel. However Fragrances improved from the previous year. Skincare and Color Cosmetics were flat.
By category, color cosmetics accounted for 24% of sales, followed by skincare, 21%; personal and hair care, 20%; fragrances, 20%; accessories 10% and wellness, 5%.
During the year, the company introduced a number of products including its first in the hair colorant market, HairX TruColour, and in anti-aging, Ecollagen, which features advanced plant stem cell technology.
Oriflame also continued to promote its new brand promise—“Your Dreams – Our Inspiration”—with the aim of making the brand stronger by focusing on the beauty offering as well as on the business opportunity for Oriflame consultants. In November, one of the company’s main warehouses for India, located near New Delhi, was destroyed by fire, causing a supply problem in the Indian market.
Plant Stem Cell Technology
In December, Oriflame announced that it had invested in what it calls “pioneering plant stem cell technology,” through the cultivation of its own plant stem cell cultures. The goal is to make “affordable products with pure and highly sustainable anti-aging active ingredients that can boost and rejuvenate aging skin.” The method is also environmentally friendly for a number of reasons, according to Oriflame, including reduced water consumption and increased quality and purity of natural ingredients.
Oriflame also entered into a collaborative partnership with Swedish company In vitro Plant-tech AB, which specializes in bio-manufacturing of cell cultures and explants from medicinal plants.
In January 2014, Oriflame presented its new fashion-inspired makeup brand called The One by Oriflame, which was launched at Mercedes-Benz Fashion Week in Stockholm. In August 2014, Oriflame was hit hard with a Russian tax probe regarding its headquarters and two factories in the Moscow area.
First Half Results
Local currency sales decreased by 2%, and Euro sales decreased by 14% to $870 million. The company still faces extreme challenges in its main markets plagued by tough geopolitical and economic conditions.
www.oriflame.com
Beauty Sales: $1.9 billion
Key Personnel: Magnus Brännström, chief executive officer and president; Thomas Ekberg SVP Global Business Area Asia, The Middle East and Africa; Sergei Kanashin SVP and head of Latin America; Henrik Johannesson VP & head of Africa; Niklas Frisk, VP and head of South Asia and MD India; Neil Holden VP packaging development and NPD Process; Dr. Alain Mavon, skin research director; Johan Rosenberg, executive vice president, global marketing and R&D.
Major Products: Mass market and premium direct-sell Skin Care, Color Cosmetics, Fragrance, Personal Care, Hair Care, Accessories and Wellness.
New Products: The One by Oriflame makeup, HairX TruColour, Ecollagen, Vivacity Eau de Toilette, Triple Core 3D Lipstick, Giordani Gold Lash Panorama Mascara.
Comments: Globalization has at least prevented companies from “putting all their eggs in one basket,” especially as the Russian market is key to Oriflame, accounting for more than half of its overall business. Weak demand there, as well as in the Ukraine and EMEA countries—as well as a drop in consultants—put a damper on Oriflame sales in 2013. But there were some bright spots, too. Africa and Turkey delivered strong sales growth. Sales in Latin America rose 15%. In Asia, sales rose more than 10% due to Indonesia, India and Pakistan. And the Swedish beauty direct seller entered Myanmar, Nigeria and Tunisia during the year. All in all, annual sales hit $1.9 billion.
In 2013, the number of visitors to Oriflame’s websites continued to rise. More than 90% of all orders were placed online, and consultants made good use of supportive online tools.
Personal Care and Hair Care had a challenging year, largely due to competition from low-priced and heavily discounted products in the retail channel. However Fragrances improved from the previous year. Skincare and Color Cosmetics were flat.
By category, color cosmetics accounted for 24% of sales, followed by skincare, 21%; personal and hair care, 20%; fragrances, 20%; accessories 10% and wellness, 5%.
During the year, the company introduced a number of products including its first in the hair colorant market, HairX TruColour, and in anti-aging, Ecollagen, which features advanced plant stem cell technology.
Oriflame also continued to promote its new brand promise—“Your Dreams – Our Inspiration”—with the aim of making the brand stronger by focusing on the beauty offering as well as on the business opportunity for Oriflame consultants. In November, one of the company’s main warehouses for India, located near New Delhi, was destroyed by fire, causing a supply problem in the Indian market.
Plant Stem Cell Technology
In December, Oriflame announced that it had invested in what it calls “pioneering plant stem cell technology,” through the cultivation of its own plant stem cell cultures. The goal is to make “affordable products with pure and highly sustainable anti-aging active ingredients that can boost and rejuvenate aging skin.” The method is also environmentally friendly for a number of reasons, according to Oriflame, including reduced water consumption and increased quality and purity of natural ingredients.
Oriflame also entered into a collaborative partnership with Swedish company In vitro Plant-tech AB, which specializes in bio-manufacturing of cell cultures and explants from medicinal plants.
In January 2014, Oriflame presented its new fashion-inspired makeup brand called The One by Oriflame, which was launched at Mercedes-Benz Fashion Week in Stockholm. In August 2014, Oriflame was hit hard with a Russian tax probe regarding its headquarters and two factories in the Moscow area.
First Half Results
Local currency sales decreased by 2%, and Euro sales decreased by 14% to $870 million. The company still faces extreme challenges in its main markets plagued by tough geopolitical and economic conditions.