Sales: $1.5 billion
Key Personnel: Magnus Brännström, chief executive officer and president; Gabriel Bennet, chief financial officer; Jesper Martinsson, senior vice president and head of commercial division and deputy chief executive officer; Michael Cervell, senior vice president group strategy and business development; Thomas Ekberg, senior vice president global business area, Asia and Turkey; Johan Rosenberg, senior vice president global business areas and franchisees; Antonia Simon-Stenberg, vice president, sustainability, quality management, packaging and artwork; Mary Lord, senior vice president research & development; Glapa Grzegorz, vice president, manufacturing operational plants.
Major Products: Skin care, cosmetics, personal care, fragrance and wellness products.
New Products: The One Colour Obsession lipstick; NovAge Men; Innoage Youth Preserve skin care (China); Lucia Bright Aura, Possess the Secret and Soul Focus fragrances; North for Men Rescue personal care; Skin Expert app.
Comments: Oriflame is present in more than 60 markets, including markets operated by franchisees. Six of these—Mexico, Russia, Turkey, India, China and Indonesia—have been identified as strategic markets where it will focus its resources and investments.
In the past seven years, there’s been a shift in where Oriflame’s revenues have come on a regional basis. In 2010, 56% came from Russia but in 2017, that number was just 26%. Sales from Turkey, India China and Indonesia meanwhile rose to 38% in 2017 from 13% in 2010. Greater input came from Mexico, too, (12% in 2017 compared to 6% in 2010). Revenues generated in Europe and Africa remained at about the same level.
For the three months ended March 31, 2018, local currency sales increased by 8%, which, for the most part, pleased CEO Magnus Brännström. He said, “2018 has started with a continued strong performance in Asia and Turkey, driven by high online activities, leadership development and the sales of skin care and wellness routines. I am also pleased to report a stable underlying operating profit for the quarter, despite facing significant currency headwinds.”
But according to Brännström, “Russia showed a notable slowdown during the second part of the first quarter due to both a weaker consumer offering and tougher competitive environment. The start of the second quarter has been negatively impacted by timing of catalogues in the CIS as well as conferences in most regions. We are taking measures where we meet sales challenges and remain confident in our long-term strategy,” he said.
Like many other businesses, Oriflame is seeing a surge in mobile activity. The company reported that mobile device sessions account for more than two-thirds of the total traffic that come into its apps and sites. The Oriflame app has about 960,000 monthly active users, according to the company. The share of orders placed using mobile devices continues to increase too, of which the Oriflame app accounts for around 20% globally. More than 95% of global orders are placed using digital channels, according to the company.
Oriflame has six production facilities in four countries.