Oriflame To Introduce 30 New products To India
6/2/2010
Oriflame of Sweden plans to introduce a series of 25-30 new products, in addition to 50,000 new people per month into India in order to tap into the highly lucrative Indian market.
"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. 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. We will be opening one more office this year. The location has not been finalized yet. We are also looking at relocating three offices as we need more space. We have already relocated our office in Kolkata" said Marcus Sandström, Oriflame India's new managing director.
"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," said Sandström. Girl child development and women empowerment are the focus areas on our corporate social responsibility front" he added.
Sandström indicated that Oriflame's India has been growing at 40 percent, in contrast to the overall industry's growth, which is 12 percent. India is the fifth largest market after Russia, Ukraine, Kazakhstan and Poland, and its annual sales have exceeded $1.6 billion, 10% of which came from Asia. The number of Oriflame India associates across the country consists of 12 offices, and the official associate count is expected to reach 400 by December from the present 375.
Sandström also explained that the new products being introduced will consist primarily of cosmetics, and that the company has no plans to introduce wellness-based products on the Indian market. The company is spending roughly $7.3 million on corporate activities, and is currently engaged in two local projects called "Deepalaya" and "Hand in Hand". These latest exploits are intended to benefit female child development, and to finance projects for underprivileged women.