The company expects to grow with the market by expanding its product range and increasing the number of distributors
Cosmetics Oriflame Romania, the domestic arm of Swedish cosmetics Oriflame firm, targets 10-15% higher turnover for this year, which should reach more than 35m euros.
"We are expecting growth by at least 10% in euros, in addition to an increase by as much as 7% in domestic currency," stated Monica Tatoiu, Oriflame Romania general manager.
She says these estimates are based on the introduction and re-launch of ranges targeting young people, as well as on the expansion of the portfolio of products aimed at men.
Monica Tatoiu forecasts about 10-15% of turnover to be seen this year will come from sales of products addressing young people. "We are betting of 18-19 year old people, to be shaped for later on. They will become targets for products for various age categories," specified the Oriflame representative.
According to her, 35% of total sales logged last December were achieved online, which stands proof to the company''s access to a younger public segment. At the same time, she says, by yearend the company will have a complete men''s product range. "I believe young men, below 35, will become more receptive to such products," Tatoiu added.
Products targeting men will weigh 5% in Oriflame Romania''s business in 2006.
"After we create a permanent distribution channel for this segment, we will enjoy annual growth by 25-40% after 2007," estimates the Oriflame representative. She explains that men older than 35 are more reluctant.
"I believe, though, men will be much more receptive than women," added Tatoiu.
The Romanian cosmetics market, put at 200-250 million euros last year, will see growth by about 20% in 2006, in line with some estimates by markets sources. The cosmetics industry has posted annual growth rates of 10-15% over recent years, once several international players entered the market. Several small manufacturers operate domestically, but the market is dominated by international players.
The company registered turnover worth 31.9 million euros in 2005, 25% higher compared with the previous year. "We''ve launched many new products and our distribution force is also 10% larger," explains the Oriflame representative.
According to her, the company currently has 60,000 direct customers, as well as 2,000 distribution firms. The company exceeded the initially projected turnover, of 28 million euros.
For 2006, Oriflame has earmarked 3% of turnover for advertising (about one million euros), and, as its representative says, has budgeted a similar sum to train local distribution managers.
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