SWITZERLAND: Oriflame has a number of proposed initiatives to be implemented this year and early 2014 which are designed to shorten time to market, increase the effectiveness of catalogues, sales campaigns and back-office functions and find synergies of global indirect purchases.
The shifts are expected to lead to annual cost savings in the range of €15-20 million, according to the company.
“Oriflame’s entrepreneurial culture is one of our core assets. Following the international expansion over the last decade, we now need to adjust our working processes in certain areas to reach our full potential. These initiatives will make Oriflame a more agile, entrepreneurial and professional organization, and will enable us to meet market demands and, ultimately, enhance sales,” said Magnus Brännström, CEO and president of Oriflame Cosmetics.
After the successful launch of the improved remuneration plan for Oriflame Consultants in the CIS (the Success Plan), Oriflame will also put additional focus on driving sales in the EMEA region, the company said. Based on market similarity, market maturity and consumer characteristics, four new and further empowered sub-regions will be created: Central Europe, Western Europe, Turkey and Africa. The existing EMEA regional organization will be downsized. Catalog creation and production for EMEA will be relocated to the new sub-regions, thus ensuring better catalogue relevance to local market preferences and tailored response to the consumers’ needs, the firm said.
Oriflame said that the proposed measures are expected to result in redundancies in Stockholm, Warsaw and Prague.