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    Top Companies Report

    15. Oriflame

    ...

    08.06.09

    Sweden
    www.oriflame.com
    Sales: $1.7 billion



    Key Personnel: Magnus Brännström, chief executive officer; Jesper Martinsson, chief operating officer; Gabriel Bennet, chief financial officer; Rolf Berg, global human resources director; Stefan Karlsson, chief marketing officer; Jonathan Kimber, global supply director; Michael Cervell, director, global sales support; Sandro Ragonesi, regional director, Latin America; Johan Nordström, regional director, Europe, Middle East and Africa; Johan Rosenberg, regional director, CIS and Baltics; Thomas Ekberg, regional director Asia; Michaela Beltcheva, legal director; Christian Jönsson, information technology director; Georgi Karapanchev, finance director; Edwin Koehler, group purchasing director; Sean Monaghan, group quality assurance director; Joanna Poplawska, group manufacturing director; Niel Holden, NPD process director; Pavlina Marinova, sales operations director; Mary Lord, research and development director; David James, global creative director; Jolanta Pastor, marketing director; Stephen Syrett, catalogue and forecasting director; Kjell Blydt Hansen, division business controller, global supply; Torsten Hustert, division financial controller, marketing and R&D; Mathias Ericsson, supply process and projects director; Jacques Mathien, consumer insight director; Maciej Zyhatynsky, group logistics director.

    Major Products: Skin care, fragrances, color cosmetics, toiletries and accessories.

    New Products: Hair X hair care, Discover bath and shower collection, Optimals Oxygen Boost, Perfect Body Advanced Anti-Cellulite and Slimming Gel, Sol sun protection and after sun care, North for Men skin care.

    Comments: Last year was a great year for Oriflame—sales rose 20% to $1.95 billion. Of that, 91%, or $1.7 billion, came from sales of skin care, fragrances, color cosmetics and personal care. The remainder is attributed to Oriflame’s accessories line.

    With sales on the rise, so too were the number of Oriflame sales consultants. By the end of 2008, the Swedish direct seller boasted 2.9 million consultants, an increase of 19% over 2007. The biggest recruitment area was Asia; consultants in the region rose 39% to more than 391,000, according to the company.

    Diamond Cellular Anti-Aging Cream
    In addition to its army of consultants operating in 61 countries, the company has more than 7000 employees in offices from Stockholm to Santiago to Bangkok.But the firm has pooled staff together in a new group support office in Stockholm, which incorporates marketing, packaging development, supply chain, catalog development and sales supports functions. In addition, Oriflame relocated other operations—group finance has moved from Waterloo, Belgium to Fribourg, Switzerland, and quality assurance and skin research, which had been in Dublin, Ireland, is now handled from Stockholm.

    Product wise, skin care sales rose 14% with units up 13% in 2008. Color cosmetics units were up 15% and sales increased 17%, due in part to the success of Wonderlash mascara, which rose a whopping 130% to become Oriflame’s No.1 selling product. Fragrance sales rose an impressive 30% with units up 19%. Personal and hair care was the company’s second fastest growing category in 2008, posting 23% and 21% increases in sales and units, respectively. Oriflame’s oral care brand Optifresh posted another year of double-digit growth as well.

    R&D expenses rose 20% (to approximately $16.9 million) in 2008 and the company established a skin research center in Stockholm.
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