Grooming Success

Marcus Sandstrom, in his capacity as an MD, is in perfect sync with the personal care company he is handling as is evident with the kind of clamor Oriflame has been making since he joined in last year. Be it launch of a new range or tie up with ace designer Rohit Bal, he is doing it with élan, determined to make Oriflame a “must have brand” in India. In a chat with Retailer, he shares his journey that has been so far and the future plans of his company.

Seema Seth(SS): Tell us about Oriflame.

Marcus Sandstrom(MS): Oriflame India commenced its operations 15 years ago. With only 59 products in the portfolio in 1995, Oriflame India today offers its customers a portfolio of over 650 products for men, women and kids in five key categories of Colour Cosmetics, Skincare, Personal & Hair Care, Fragrances and Accessories. Oriflame is today the #1 Beauty Company Selling Direct in India. In terms of the market share, we are way ahead of our competition. We have been growing at an average rate of 40% the last 5 years.

SS: What are your product categories and their USPs?

MS: Oriflame offers products for men, women and kids in five key categories of Colour Cosmetics, Skincare, Personal & Hair Care, Fragrances and Accessories. Since its inception Oriflame has grown rapidly, retaining its unique Swedish heritage and values, which are represented in the simple, modern style of its product lines and in the quality of its formulations. We are also proud that we never ever test our products on animals.

Also, Oriflame India today offers its customers a portfolio of over 650 products for men, women and kids in five key categories and their prices ranges from Rs. 45 to over 2000. From a Talc Paradise Fruits worth Rs. 45 to Grace Premium EDP for Rs. 2390, Oriflame has it all that fits the pocket of our target audience.

SS:What is the cosmetic buying pattern of Indian women and what is your target group? What changes are you witnessing in Indian Retail and in which direction do you see it going?

MS: Indian consumers have become extremely conscious about their appearance. They are open to experimenting in order to find a correct brand for themselves. The 90s brought with it, the trend of liberalization and made Indian women conscious of their appearance. Consequently, the cosmetic consumption patterns of Indian women have changed, and this trend is fuelling growth in the cosmetic sector.  Now-a-days, more and more customers are expressing their willingness to pay more in anticipation of superior quality.

There will always be a mix of natural and scientific products in the Indian retail sector market. However, cosmetics are getting to be pharmaceutical in nature. Product claims are becoming more important; so every cosmetics product has to result in something better for the user. But a company has to stay true to its roots and adapt to the market demands at the same time.

SS: What are your promotional and marketing strategies?

MS: We are planning to step up our marketing campaigns by focusing more on digital and print advertising this year. In 2011, we plan to invest twice as much as we did last year on Advertising & Marketing. We will be promoting our products through events, media tie-ups, in theatre etc. We will be doing select print advertising primarily in women’s magazines.

Direct marketing will be a key element of our BTL mix.

SS: What are your expansion plans for Oriflame?

MS: In 2011, we are going to focus on the Youth and to mark the same, Oriflame unveiled the “Dare to Be range” created specifically to cater to the needs of the younger audience.

We are doubling our ad spends in 2011 and have a strong ATL and BTL campaign.  This initiative will witness a lot of on-ground activation, with radio being an important media vehicle as well.

SS: What has the turnover been in the last financial year( overall and India) What growth has it witnessed from last year?

MS: Asia contributes 10% to the total turnover. And India is amongst top 10 countries worldwide. We are the number one beauty brand selling direct in India. Now we have a better, enhanced and affordable product portfolio.

SS: What according to you is necessary to succeed as a direct selling company?

MS: At Oriflame we are living by the core values - Togetherness, Spirit and Passion. Oriflame is characterized by a strong culture of entrepreneurial spirit of its employees and consultants.  Over the years, Oriflame has built a strong loyal customer base by providing catalogues, beauty tips, a wide gamut of products, excellent customer service and good value for money. Oriflame also provides personalized and professional beauty tips to its discerning consumers for selecting the right product to enhance their individual beauty. Besides focusing on the consumers, Oriflame holds regular trainings on Beauty, Business and Leadership for its Consultants. Oriflame Consultants have fun while making money. They earn name and fame, gain self-confidence, get a chance to spend quality time with their family and fulfill all their dreams.