Oriflame Romania, the domestic branch of Swedish cosmetics producer Oriflame, forecasts 40% higher turnover for this year, bringing it to a value of 28 million euros, amid an increased number of distributors, as well as the launch of new products.
Both the expansion of the distribution network, and product launches are especially targeted at the "youth market", a category the cosmetics importer had not covered before.
"When we launched our business, we started with distributors aged between 30 and 40, who did not have access to the 15-25 year olds category. Now we also have younger persons working with us," explains Monica Tatoiu, general manager of the company.
Last year the company introduced its online ordering system, which it hoped would account for 20% of the total sales volume. "We already had 25% of sales in online orders in late October, which clearly proves that we are accessing a lower age category, since young people are the ones using the Internet," added Oriflame representative.
New distribution points have been opened in Timisoara, Sibiu, Cluj-Napoca, Baia Mare, Satu Mare and Craiova.
She says that Oriflame Romania posted 10% growth in RON and 23% in euros in terms of turnover in the first three quarters of the current year. After the first six months of this year, the company saw turnover worth 11.5 million euros.
Oriflame at present works with about 2,500 distribution firms.
"Personal care products targeted at men, for instance, account for 40% of our nine-month turnover. This indicates our alignment with foreign markets, as well as better access to information," she continued.
Oriflame entered the Romanian market in 1994, and the growth witnessed in 2005 is not, in fact, the highest the company has posted on the Romanian market. In 1996-1998, Oriflame registered growth rates close to 100%, Tatoiu explained.
The cosmetics market has increased by about 10-15% in each of the last few years. On the direct sales segment, Oriflame''s main rivals are Avon and Amway.
The cosmetics business in Romania amounts to about 30 million euros per annum.
This market includes small domestic producers, but major international players dominate the sector.
"This year has been an exceptional one. The flat income tax has brought additional income to the middle class, which has led to higher consumption," the Oriflame representative added. andreea.groenendijk@zf.ro
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
