In June 2013, Oriflame had mentioned it is
eyeing 25 pc y-o-y growth over ‘the next
five years’. It was also said that you were
looking to double revenue by 2016. How has
that shaped up till date?
Last year we had a higher double digit growth
which is evidence of us being in line with our
plans. And 2016 is when we plan to reach our
Rs 1000-crore mark in sales revenue.
The company was also planning to launch
certain products, including shampoo and
skin care products, especially for the Indian
market. Which are the products launched
since June 2013, and how have they fared?
What is their contribution (even as a
percentage of the total) to sales?
In the Indian portfolio we have 500 products
under five major product categories. Biggest
category is skin care for Oriflame and
especially for Oriflame India. A number of new
products launched tend to fall under the
colour cosmetics category simply because of
the nature of the category and the receptive
market it finds in India. This year we are
looking at five big launches, the previous ones
having been very successful.
About how our launches have fared, the Indian
customer’s choices have evolved to match that
of our consumers in the global market. Being a
European brand, we import a lot of products
from our global portfolio into India and we’re
seeing that people are demanding higher
performance ranges which we do deliver on.
You were reported to have 2.5 lakh
consultants in India in June 2013. What is
this count as of today?
Our force of 2.5 lakh consultants is an average
number which keeps on increasing. This
statistic is of the number of people who place
an order at least once in three months so if we
were to look at the real strength of this force
the number would be huge.
What are the marketing challenges specific
to the direct selling model? What is the role
of advertising and how is it different to a
traditional selling (retail) model?
The challenges would be in terms of the
changing expectations of the consumer. If we
look at a typical Indian consumer, they want
the best quality at the best rates and the
advantage that we have at Oriflame is that this
match can only happen when we as a company
are able to give personalised advice to our
consumers. You can’t expect people to go into
the market and pick up a Rs 2,000 product.
Only a friend, a relative or a person you trust
can be able to give you the advice of whether a
product is suitable for you or not.
Conventional advertising doesn’t work for us.
Usually, a consumer will see an advertisement
and go to the store and ask for the product.
For us, probably the need wasn’t there in the
first place.
I don’t think we can ignore TV advertising -
looking at the sheer size of the Indian
population we do need to attract people at all
levels. Even in the case of our catalogue, it is
effective only if it reaches people.
We are looking into the demands of consumers
and the need to reach out. It is very important
that before you go out and advertise you make
your channels ready to supply the product.
That is what our people are doing. Currently,
we’ve done hoardings, magazine inserts etc. so
we have increased our portfolio and
communicated the same. Because our channels
of delivery are different to our competitors’, it
is not realistic to compare one with the other
on any one parameter.
Oriflame is readily associated with beauty.
What is the contribution of other categories
(including heath and wellness) to sales in
India and globally? Which categories can we
see being launched in India in the near
future?
Globally, it is a complete portfolio of health
and wellness. Obviously, when something is in
the global portfolio, we do look at
opportunities for the same in the Indian
market. Products that we currently have were
once part of our global portfolio and have now
found a place here.
The cosmetics category has been with us for
40-odd years and is a well-established category
but the health and wellness portfolio is
relatively new. So we cannot expect the
percentage to be very high as of now. The
health and wellness category hasn’t been
launched in all the countries we operate in, so
it’s not possible to share percentages. In the
markets this category is present in, health and
wellness might be 10 per cent in one and 15
per cent in another.
We are not looking at launching any new
‘categories’ as all the things we launch would
fall under categories that already exist. I would
go further and say that we are we are not yet
done launching all the products in the existing
categories.
Having said that, men’s products segment is
what we’re very consciously developing and
that is where we see great opportunity. The
range for men can obviously not compare
because for a woman, within lipsticks she may
have multiple options whereas if a man needs
a facewash he has no option except the one
facewash being offered per company.
Which are the agencies Oriflame works
with in India (you tied up Ignitee some
time ago)?
We have agencies that have been with us for
quite some time but there is a lot of internal
strategising that takes place and then it goes a
step ahead with the agencies. The agencies that
we are currently working with are OM Logic as
our digital agency and Starcom Mediavest as
our media agency.
Direct selling companies like Amway have
taken to TV. Oriflame hasn’t, and you have
also spelt out why. Today there are ad
channels on DTH; service providers like
SureWaves and Amagi. With targeting
possible on TV today, do you see the option
being viable?
May be. To say that we will not be looking at a
particular medium of communication is
incorrect. Globally, there isn’t a single medium
that we haven’t utilised at the right time with
the right kind of message. We are taking steps
towards it and in the future we don’t doubt
that we would be looking at those channels in
India as well.
On digital, FMCG players have taken a leap
with content and engagement properties.
What has been Oriflame’s approach to RoI
on digital spends? Is there a linkage to
sales and what has the RoI been so far on
specific properties?
We have a very different way of focusing our
digital spends. Our promotional strategies
work on may be one, two, three or four levels
owing to how different our model is compared
to others.
For us, getting word out on something
depends as much on our consultants as on any
other medium. And when you have a system
such as this your RoI will always be greater.
Direct selling companies have had their
share of worries with authorities. Has
Oriflame had any such issues in India?
We want laws, we demand clarifications when
needed, so that organisations like ours can
work more smoothly and keep providing
opportunities to people. http://www.campaignindia.in/Article/389654,oriflame-india-sees-8216great-opportunity8217-in-men8217s-products.aspx
eyeing 25 pc y-o-y growth over ‘the next
five years’. It was also said that you were
looking to double revenue by 2016. How has
that shaped up till date?
Last year we had a higher double digit growth
which is evidence of us being in line with our
plans. And 2016 is when we plan to reach our
Rs 1000-crore mark in sales revenue.
The company was also planning to launch
certain products, including shampoo and
skin care products, especially for the Indian
market. Which are the products launched
since June 2013, and how have they fared?
What is their contribution (even as a
percentage of the total) to sales?
In the Indian portfolio we have 500 products
under five major product categories. Biggest
category is skin care for Oriflame and
especially for Oriflame India. A number of new
products launched tend to fall under the
colour cosmetics category simply because of
the nature of the category and the receptive
market it finds in India. This year we are
looking at five big launches, the previous ones
having been very successful.
About how our launches have fared, the Indian
customer’s choices have evolved to match that
of our consumers in the global market. Being a
European brand, we import a lot of products
from our global portfolio into India and we’re
seeing that people are demanding higher
performance ranges which we do deliver on.
You were reported to have 2.5 lakh
consultants in India in June 2013. What is
this count as of today?
Our force of 2.5 lakh consultants is an average
number which keeps on increasing. This
statistic is of the number of people who place
an order at least once in three months so if we
were to look at the real strength of this force
the number would be huge.
What are the marketing challenges specific
to the direct selling model? What is the role
of advertising and how is it different to a
traditional selling (retail) model?
The challenges would be in terms of the
changing expectations of the consumer. If we
look at a typical Indian consumer, they want
the best quality at the best rates and the
advantage that we have at Oriflame is that this
match can only happen when we as a company
are able to give personalised advice to our
consumers. You can’t expect people to go into
the market and pick up a Rs 2,000 product.
Only a friend, a relative or a person you trust
can be able to give you the advice of whether a
product is suitable for you or not.
Conventional advertising doesn’t work for us.
Usually, a consumer will see an advertisement
and go to the store and ask for the product.
For us, probably the need wasn’t there in the
first place.
I don’t think we can ignore TV advertising -
looking at the sheer size of the Indian
population we do need to attract people at all
levels. Even in the case of our catalogue, it is
effective only if it reaches people.
We are looking into the demands of consumers
and the need to reach out. It is very important
that before you go out and advertise you make
your channels ready to supply the product.
That is what our people are doing. Currently,
we’ve done hoardings, magazine inserts etc. so
we have increased our portfolio and
communicated the same. Because our channels
of delivery are different to our competitors’, it
is not realistic to compare one with the other
on any one parameter.
Oriflame is readily associated with beauty.
What is the contribution of other categories
(including heath and wellness) to sales in
India and globally? Which categories can we
see being launched in India in the near
future?
Globally, it is a complete portfolio of health
and wellness. Obviously, when something is in
the global portfolio, we do look at
opportunities for the same in the Indian
market. Products that we currently have were
once part of our global portfolio and have now
found a place here.
The cosmetics category has been with us for
40-odd years and is a well-established category
but the health and wellness portfolio is
relatively new. So we cannot expect the
percentage to be very high as of now. The
health and wellness category hasn’t been
launched in all the countries we operate in, so
it’s not possible to share percentages. In the
markets this category is present in, health and
wellness might be 10 per cent in one and 15
per cent in another.
We are not looking at launching any new
‘categories’ as all the things we launch would
fall under categories that already exist. I would
go further and say that we are we are not yet
done launching all the products in the existing
categories.
Having said that, men’s products segment is
what we’re very consciously developing and
that is where we see great opportunity. The
range for men can obviously not compare
because for a woman, within lipsticks she may
have multiple options whereas if a man needs
a facewash he has no option except the one
facewash being offered per company.
Which are the agencies Oriflame works
with in India (you tied up Ignitee some
time ago)?
We have agencies that have been with us for
quite some time but there is a lot of internal
strategising that takes place and then it goes a
step ahead with the agencies. The agencies that
we are currently working with are OM Logic as
our digital agency and Starcom Mediavest as
our media agency.
Direct selling companies like Amway have
taken to TV. Oriflame hasn’t, and you have
also spelt out why. Today there are ad
channels on DTH; service providers like
SureWaves and Amagi. With targeting
possible on TV today, do you see the option
being viable?
May be. To say that we will not be looking at a
particular medium of communication is
incorrect. Globally, there isn’t a single medium
that we haven’t utilised at the right time with
the right kind of message. We are taking steps
towards it and in the future we don’t doubt
that we would be looking at those channels in
India as well.
On digital, FMCG players have taken a leap
with content and engagement properties.
What has been Oriflame’s approach to RoI
on digital spends? Is there a linkage to
sales and what has the RoI been so far on
specific properties?
We have a very different way of focusing our
digital spends. Our promotional strategies
work on may be one, two, three or four levels
owing to how different our model is compared
to others.
For us, getting word out on something
depends as much on our consultants as on any
other medium. And when you have a system
such as this your RoI will always be greater.
Direct selling companies have had their
share of worries with authorities. Has
Oriflame had any such issues in India?
We want laws, we demand clarifications when
needed, so that organisations like ours can
work more smoothly and keep providing
opportunities to people. http://www.campaignindia.in/Article/389654,oriflame-india-sees-8216great-opportunity8217-in-men8217s-products.aspx
