Oriflame plans to increase its market share in India

India: Sweden based direct seller of women’s cosmetic products, oriflame expects India to become its top two market in the next five years due to the recent guidelines issued by the government for the sector. The company has been witnessing an increase in its revenue at 20% y-o-y and the company expects the revenue growth to remain the same over the next 3-4 years. Skin and wellness products are the major drivers for the company’s revenue generation. India is already among the top five revenue generating markets for the company.

Oriflame started its operations in India in 1996 currently has a turnover of around USD155 million out of which, 36% of the company’s revenue is generated from skin care, 22% is generated from cosmetics and 10% from wellness. The company operational structure in India includes 2 manufacturing facilities and a network of 0.25 million direct sellers. The company believes that India as a market has a huge potential and the company has plans to penetrate the market at targeted places in coming years with its focus on technology. 

According to TechSci Research, the company’s plans to increase its revenue from the country is hugely beneficial for the company as the company’s global revenue sales declined by 4.29% and net profit declined by 8.76% in 2015. With developing markets such as Asia and Latin America being the only regions where the company witnessed an increase in the revenue.

According to a recently published report by TechSci Research, “India Women’s Cosmetics Market Forecast & Opportunities, 2020”, the market for women’s cosmetics products in India is projected to grow at a CAGR of 16% during 2015-20. Growth in the market is being driven by increasing consciousness among women regarding their looks, in addition to aggressive advertising of these products. India women’s cosmetics market is highly competitive, and so major players are working towards optimizing their sales, by focusing on product development and innovative packaging to lure more customers. Companies are also roping in different female icons to feature in their product advertisements, as the aspiration to look more like their celebrity idols has been a major factor encouraging sales of cosmetic products in the country. Major players in women’s cosmetics market include HUL, Procter & Gamble, L’Oréal and Himalaya, among others.