‘Oriflame Products Sold On E-commerce Platforms are Fake’

Oriflame, the renowned Swedish beauty brand known for its direct and community selling strategy, has reiterated that its products available on e-commerce platforms are fake and consumers should only purchase their products from their authentic website. With over two decades of presence in India, Oriflame is recalibrating its marketing and expansion strategies for the Indian market. The brand is also expanding its wellness category and focusing on the younger generation to enhance growth in the region.

Oriflame offers a wide range of products in India, including skincare, makeup, fragrance, hair and body products catering to both adults and kids. The skincare category generates the most revenue for Oriflame.

Brand Journey

In an interview with IndianRetailer.com, Edyta Kurek, Senior Vice President and Head of India and Indonesia, discussed the brand’s commitment of not entering in the retail and e-commerce spaces and shared the brand's expansion strategies for India.

Reflecting on Oriflame’s journey in India, Kurek said, “We were one of the first direct selling companies in the Indian market, and we addressed the market’s needs at that time. We attracted many educated individuals from good families who wanted to be independent. The financial opportunities we offered were so attractive that they kept the spirit of direct selling alive.”

Kurek further said, “Over the years, we didn’t use external media to communicate about our brand to people in India and around the globe. We believed our brand partners would do the job. But in this new age, this isn’t enough. We need to start talking about the brand more loudly now. We also allowed other brands in our category to speak louder, and now we will be doing the same, promoting our products more aggressively.”

Elaborating on the growth journey, Kurek said, “When we compare our journey to a decade ago, the market dynamics have changed. We have expanded in many cities, including Kolkata, Delhi, Mumbai, and the Northeast, which is our fastest-growing market. We have extended our product portfolio, and with two manufacturing units in India, we are producing over 85 percent of our products here.”

Staying True to Direct Selling

When asked if Oriflame will adopt an omnichannel strategy, Kurek responded, “I echo our CEO’s words: we don’t have these plans. We have developed a direct selling business model, and it will remain the same. We have our brand partners and will share the margin with them. Getting into retail stores or putting our products on shelves is not easier. We are loyal to our brand partners, and they believe they can build their future with us. They earn money with us.”

Kurek reiterated, “The products being sold on e-commerce platforms are fake and are not allowed, and I repeat, we don’t have any retail footprint in India. We urge our consumers to purchase Oriflame products from our authentic Oriflame website. We have also informed e-commerce platforms about this issue in the past.”

Premiumization Not a Focus

India is experiencing a wave of premiumization, with multiple brands seeing an uptick in their premium segments. However, Oriflame’s focus remains on providing affordable products to the middle-class income group and gradually moving towards premium product ranges.

Kurek explained, “Our product portfolio is very diverse. We offer simple and inexpensive products, like shampoos and basic skincare, as well as sophisticated products based on our own technologies that deliver results in two weeks. We believe that once people try our basic products, they will build trust and then opt for our most exclusive products. We are ready to move towards premium ranges, but we don’t want to focus on premium customers because the middle class will always be our largest customer base with significant purchasing potential.”

Expansion Strategy

According to Markets and Data report, the Indian Skin Care Market was estimated to be worth USD 2.56 billion in FY2023. Facial care was the market's largest category both in terms of value and volume. The market is expected to reach USD 3.73 billion by FY2031 growing at a CAGR of 4.82% for the forecast period between FY2024 and FY2031.

Talking about the expansion plans in India, Kurek said, “We are expanding the network of our brand partners and are growing strongly in Northeast India. North India is the biggest market for the brand. We have a strong presence in the South, but Central India is still underpenetrated. We have 150,000 brand partners in the country, and we are growing strongly in India.”

She further said, “We are also creating a new strategy for India focused on the younger generation, as their mindsets and behaviors differ from their parents. We tell the younger generation that our business model requires no financial investment, just a bit of time to grow and earn a good income. They are very discerning about products, wanting them to be good, sustainable, and effective. So we are planning a digital-first strategy to communicate with them.”

When asked about the lack of investment in advertising or marketing strategies, Kurek stated, “Until now, we never planned our media strategies. But in the coming days, the board will strategize in these areas and plan according to market needs. I believe India will receive the necessary resources to grow.”

Note: Consumers can purchase authentic Oriflame products from authorized brand partners and on brand website in.oriflame.com