Oriflame is a cosmetics company founded in 1967 that sells products through a direct sales model. It has 2.8 million sales consultants operating in 61 countries. Oriflame produces products in several countries and has a catalog model with new products launched every three weeks. In 2008, Oriflame saw sales increase 20% to €1.3 billion with operating profit rising 21% to €187 million as sales grew strongly in emerging markets like Russia, Poland, and Asia. Oriflame expects continued growth in emerging markets and aims to increase operating margins to 15% in the long run.
3. A Long Term Growth Company 1990 - 2008: CAGR organic sales of over 17% € m
4. Togetherness, Spirit & Passion Respect People, Focus on Customers, Demand Quality, Seek Simplicity and Cost-efficiency, Pursue Long-term Growth To be the #1 Beauty Company Selling Direct Our Vision Our Mission Our Offer Our Business Opportunity concept Our Values & Operating Principles Our Strategy Where we’re going Our reason for being What we offer What we should be best in the world at How we work together How we create and build the business opportunity concept Our Logotype & Slogan To Fulfil Dreams THIS IS ORIFLAME
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7. Our Business Model Oriflame Independent sales consultants Consumer Order Order Products Products Payment Payment Incentives
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12. Direct Selling Industry - Product categories Source: Oriflame estimation based on Euromonitor data and other sources *Selected products in major markets **Includes skin care, make up and other cosmetics ***Other includes jewellery, gift items, auto care, pet products, various services (e.g. flower delivery) and other consumer goods items not accounted for elsewhere Direct selling channel categories USD Billion A $111bn industry with 62 million independent consultants (2007). Source: WFDSA 2008.
17. Cautionary Statement Some statements herein are forward-looking and the actual outcome could be materially different. In addition to the factors explicitly commented upon, the actual outcome could be materially effected by other factors like for example, the effect of economic conditions, exchange-rate and interest-rate movements, political risks, impact of competing products and their pricing, product development, commercialization and supply disturbances.
Notas do Editor
This is Oriflame: Our vision is to become Number 1. We will achieve it by executing our strategies for growth in the areas of People & Culture, Brands & Products, Network Marketing and World Class Service. And the reason why we do all of this? Because we’re the vehicle for fulfilling the dreams of our customers, Consultants and Employees, that’s why! Our business rests on two sturdy pillars: our beauty offer summarized by the phrase “Natural Swedish Cosmetics” and our unique business opportunity, summarized by the phrase “Make money today and fulfil your dreams tomorrow” As a result, Oriflame offers consumers a way to look great and have fun by using the products and Consultants an opportunity to change their lives in three ways: “Look Great, Make Money, Have Fun” And, while we continuously adapt our strategies to a changing environment, our core values of Togetherness, Spirit and Passion remain the same, as do our operating principles of Respecting People, Focusing on our Customers, Demanding Quality, Seeking Simplicity and Cost-efficiency and Pursuing Long-term Growth. After this presentation, as an employee you should know the Oriflame Fundamentals. You should be able to speak about them with your colleagues in order to help move our business forward.
Our business opportunity is unique Because Oriflame offers the prospect both of earning money immediately AND fulfilling long-term dreams, we attract a lot of people with different ambitions. The majority may only sell a little and save on their own and their family’s purchases. Even so, they are very important as they and their customer base make the business sustainable over time. Having a customer base outside the networks is something that pure MLM companies often lack due to a limited product range or very expensive products, which is why they often go up only to go down again. Single-level companies often have a wide product range at reasonable prices but lack the prospect of fulfilling people’s dreams. Or they have very high personal sales requirements for those who want to build a network – and thus fail to attract people who are more business-oriented. We have a unique position in the industry in that we offer – more than anywhere else – the opportunity to make money today and fulfil your dreams tomorrow.
Oriflame has grown to have operations in 57 markets around the world. 12 countries are franchisees; most notably Central America, Australia, Sudan, Egypt and Algeria. We have chosen to grow through franchisees in markets which are either small or complex to operate in. Oriflame today has grown to 5300 employees and with head office in Brussels we are truly international in our set up. Our Global Technical Centre is located in Ireland, Our Catalogue Development Center in Sweden. We manufacture roughly half of our annual product volume in-house in our own factories located in Warsaw, Stockholm, India and China. The rest through selected subcontractors mainly in the UK, France and Italy .
![Introduction to Oriflame ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Latin America, 5% Asia, 6% EMEA, 30% Sales by Region 2008 CIS & Baltics, 59% *) Before restructuring costs due to the new operational platform of €8.7m. (€25.8m) € million 2008 2007 Change Sales 1,329.1 1,109.4 20% Gross margin 69.7% 70.1% - EBITDA* 216.6 182.4 19% Op. profit* 187.3 155.4 21% Op. margin* 14.1% 14.0% -](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)