Top Companies Report

15. Oriflame

August 6, 2012

Sweden
www.oriflame

Sales: $2.0 billion

Key Personnel: Magnus Brännström, chief executive officer and president; Jesper Martinsson, chief operating officer; Gabriel Bennet, chief financial officer.

Major Products: Skin care, color cosmetics, fragrances, personal and hair care products, wellness and accessories.

New Products: Ecobeauty and Ecollagen 3D+ Deep Wrinkle skin care; Studio Artist color cosmetics, Jewel lipstick, Maxi Lash mascara; Architect, Delicacy, Eclat Weekend and Volare Magnolia fragrances.

Comments: Sales fell just over 1% last year. By region, CIS & Baltics accounted for 56% of sales, followed by Europe, Middle East and Asia (28%), Asia (10%) and Latin America (6%). Russia is far and away Oriflame’s largest single market, accounting for more than 25% of corporate sales.


Love Potion is a new scent from Oriflame.
By product category, sales were led by color cosmetics at 24% of sales, followed by personal care and hair care and skin care, each accounting for 21% of sales. Fragrance was next at 20%, followed by accessories (10%) and wellness (4%). Only personal care and hair care and accessories and wellness posted gains last year, at 3% and 10%, respectively.

Oriflame’s direct sales force now operates in more than 60 countries, having added Algeria last year. With the launch of Ecobeauty, Oriflame says it was the first company to introduce products certified by four independent environmental and fair trade organizations.

Last year, the company formed a partnership with the Women’s Tennis Association and tapped the world’s then No. 1 player, Caroline Wozniaki, as its global ambassador.

Also last year, the company redesigned its website, and attracted 20 million more visits than the previous year.

For the first quarter of 2012, sales rose 2% to $520 million. However, unit sales fell 5%, while the price/mix effect was 7%. During Q1, the sales force contracted 5% to 3.6 million consultants in Q1. CEO Magnus Brännström blamed the decline on a setback in recruitment that came during Q3 2011.


EcoBeauty has been certified by four environmental and fair trade organizations.
“Our efforts to return to growth and improve profitability have led to promising results on sales, productivity and margins—however, market dynamics remain challenging,” said Brännström. “It is also important to highlight the cash flow, further reducing the net debt. In addition to these achievements we will in the coming quarter focus on growth of the sales force and thereby lay a solid foundation for the future.”

By region, local currency sales increased by 16% in Asia, by 10% in Latin America and by 1% in CIS & Baltics while unchanged in EMEA. In April, Oriflame was selected as Brand of the Year in Russia.


 

blog comments powered by Disqus
  • Shin-Etsu Updates Sunscreen Toolbox

    October 6, 2011
    Shin-Etsu Updates Sunscreen Toolbox

  • Testing for Sustainable Preservatives

    Adam P. Byrne, William Michael Hart-Cooper, Kaj Johnson, Larry H. Stanker, Dominic W. S. Wong, William J. Orts||January 4, 2016
    A rapid, inexpensive and qualitative protocol for determining microbial growth inhibition.

  • Burgeoning Beauty

    Burgeoning Beauty

    Melissa Meisel, Associate Editor||January 4, 2016
    A look at trailblazers for 2016 and beyond.

  • In-Cosmetics Paris Has Sights on US

    In-Cosmetics Paris Has Sights on US

    Imogen Matthews , In-Cosmetics||December 2, 2015
    Market focus is on the USA.

  • Cleansing Conditioners

    Cleansing Conditioners

    Denise Costrini and Christophe Toumit , Croda Personal Care North America||December 2, 2015
    Relying on consumer data, Croda researchers detail the drivers behind these successful formulas.

  • Just Wild About Harry’s Cosmeticology

    Just Wild About Harry’s Cosmeticology

    Tom Branna, Editorial Director||November 2, 2015
    The ninth edition, edited by Meyer Rosen, has been expanded and improved with an emphasis on the future of the industry.

  • Lush Is Flush with Novel Ideas

    Lush Is Flush with Novel Ideas

    Tom Branna, Editorial Director||November 2, 2015
    New products are the lifeblood of every company. Lush will launch more than 200 of them.

  • A Fresh Take

    A Fresh Take

    Melissa Meisel, Associate Editor||November 2, 2015
    Today’s soaps and shower products do more than just cleanse—they solve skin quandaries, are portable or even look whimsical!

  • Contract Manufacturing/Private Label Directory

    Contract Manufacturing/Private Label Directory

    October 1, 2015
    Our directory is your source to find a manufacturer to get your product to market.

  • Winner Unmasked

    Winner Unmasked

    October 1, 2015
    Laneige’s Water Sleeping Mask takes home top honors as Happi’s first Anti-Aging Product of the Year.

  • A Design for Living

    A Design for Living

    Tom Branna, Editorial Director||October 1, 2015
    Cornell McBride Sr. has had a range of successes during his 40-plus years in the hair care business.

  • An Arduous Task?

    An Arduous Task?

    Tom Branna, Editorial Director||October 1, 2015
    Elizabeth Arden's JuE Wong is confident that the way to right the company’s ship is by tapping into its rich heritage.

  • Slow Burn

    Slow Burn

    Tom Branna, Editorial Director||October 1, 2015
    No news from the FDA is bad news for the sun care industry.

  • Tried & True

    Tried & True

    Melissa Meisel, Associate Editor||October 1, 2015
    Test providers strive to prove a product’s efficacy for consumer confidence.

  • Market Your Cosmetics In Europe with Safety

    Market Your Cosmetics In Europe with Safety

    Pascal Yvon, IDEA TESTS Group||October 1, 2015
    Compliance to European safety regulations for cosmetic products, final formulations and ingredients.

  • Talking Point

    Talking Point

    Christine Esposito, Associate Editor||October 1, 2015
    For its inaugural Sustainability Dialog in Frankfurt, Clariant gathered stakeholders that included a mix of customers, third

  • A Consumer Revolution

    A Consumer Revolution

    Melissa Meisel, Associate Editor||June 1, 2015
    IRI’s 2015 Summit celebrates the progression of information.

  • Interior Design

    Interior Design

    Melissa Meisel , Associate Editor||May 1, 2015
    Nutritional products can improve and beautify skin from the inside out.

  • KodaDome

    KodaDome

    Tom Branna , Editorial Director||May 1, 2015
    Hair color isn’t all about hiding grays—it’s about selecting shades that reflect individuality, too.

  • Face Valued

    Face Valued

    Christine Esposito, Associate Editor||May 1, 2015
    Skin care formulations that promise to protect a prized possession—one’s appearance—are always in demand.

  • Anti-Aging Moisturization

    Anti-Aging Moisturization

    Dr. Stefan Banziger, Dr. Stefan Hettwer, Brigit Suter, Barbara Obermayer, Rahn AG, Zurich, Switzerland||May 1, 2015
    Researchers at Rahn develop a symbiotic moisture concept from lichen, moss and fern that hydrates the skin.

  • A Multifunctional Ingredient for Delicate Eye Contour

    A Multifunctional Ingredient for Delicate Eye Contour

    Julia Comas, Cristina Davi, Elena Canadas, Albert Soley, Raquel Delgado , Lipotec SAU||May 1, 2015
    Lipotec’s Eyedeline marine ingredient provides several benefits for the delicate skin around the eyes. It reduces vascular pe

  • Always in Style

    Always in Style

    Christine Esposito, Associate Editor||March 4, 2015
    Ashland adds a workhorse polymer to its lineup, further solidifying its place as an expert partner for brands that want to thrive in the $8 billion hair styling category.


  • Yeah, But How Does It Make You Feel?

    Yeah, But How Does It Make You Feel?

    Imogen Matthews, In-Cosmetics||January 6, 2015
    An update on the growing importance of creating a sensory dimension in cosmetics and toiletries.

  • New and Improved?

    New and Improved?

    Melissa Meisel , Associate Editor||January 6, 2015
    Emerging skin care brands manage to find their way in an increasingly competitive marketplace.