Why is it interesting to visit Oriflame?- because cosmetics is the fastest growing private consumer goods in the Eastern part of Europe.
- Personal apperance and looks is definetely part of the experience economy
We are in the ”smiling products” business. Likewise selling holidays. The first words coming from managing director Magnus Holm who received us in the headquarter in Prague.
Immediately we “feel” the difference. The dynamic of the company and personalization of staff and customers (who are also somehow considered intermediaries selling Oriflame products).
Observations highlights:
* Multilevel marketing – experiences and people is the key
* Pyramide-model (normal consumers also the main salesforce – paid 30% commission)
* Emotions and closeness to local community are the driving forces for selling
* 80.000 mainly women are both customers and sales force
* Oriflame strongest in the country side (more difficult in big city Prague)
* Online orders are 57% - rest is directly face to face sales. (in Finland 99% online)
* More “homecomsumers” in Tjeck Republic than any other country in the World
* Local famous Tjeck model used as the “face” in all marketing & charity woork. Swedish faces do not work well in marketing – too natural looking….
* High potential for growth amingst the new generation
* Language skills the main barrier in most consumer markets in Tjeck republic. Has to be local language
* Population is withdrawn, unsecure and lacks self confidence (history of the country heavy influence still)
* Younger generation >20 years have a more positive view on the future – potential for Oriflame
* Mass media advertising necessary in the future – to meet the competition from international brands
* Emotions – the key USP for Oriflame (smiling products)
* Multilevel marketing – experiences and people is the key
* Pyramide-model (normal consumers also the main salesforce – paid 30% commission)
* Emotions and closeness to local community are the driving forces for selling
* 80.000 mainly women are both customers and sales force
* Oriflame strongest in the country side (more difficult in big city Prague)
* Online orders are 57% - rest is directly face to face sales. (in Finland 99% online)
* More “homecomsumers” in Tjeck Republic than any other country in the World
* Local famous Tjeck model used as the “face” in all marketing & charity woork. Swedish faces do not work well in marketing – too natural looking….
* High potential for growth amingst the new generation
* Language skills the main barrier in most consumer markets in Tjeck republic. Has to be local language
* Population is withdrawn, unsecure and lacks self confidence (history of the country heavy influence still)
* Younger generation >20 years have a more positive view on the future – potential for Oriflame
* Mass media advertising necessary in the future – to meet the competition from international brands
* Emotions – the key USP for Oriflame (smiling products)
Interview highlights
The three most important trends long termed
1. Cosmetic business infrastructure development (international brands entering the market place)
2. The community driver: Both web 2.0 and local fysical environment (mouth to mouth)
3. Expected growht in “skin care products” – 12% pa
Consumer behavior change
1. New generation more open & selfconfident
2. A hidden “force” within the population waiting to break out…Huge effect on consumption
3. The influence of mass marketing will put the current distribution model under pressure – but it will remain.
1. Cosmetic business infrastructure development (international brands entering the market place)
2. The community driver: Both web 2.0 and local fysical environment (mouth to mouth)
3. Expected growht in “skin care products” – 12% pa
Consumer behavior change
1. New generation more open & selfconfident
2. A hidden “force” within the population waiting to break out…Huge effect on consumption
3. The influence of mass marketing will put the current distribution model under pressure – but it will remain.
Industrial framework changes
1. Advertising change – foreign brands coming in investing in mass media.
2. The salary development I Tjeck Republic is high (10% pa) puts the Oriflame distribution model and margins) under pressure
Innovation in Oriflame
1. 80.000 creators around the country! Free to invent all sorts of happenings themselves
2. Fysical meeeting amongst people the most important thing
3. Innovation brainstorming book used every day: “Six thinking Hats”.
4. Many meetings with the consulents ca. 100 people. Round tables discussions, It council, Crystal Ball, Top Club etc.
The importance of corporate culture & values?
1. Culture & Values THE MOST IMPORTANT THING
2. Ethical values made by the founders (still valid)
3. Charity important
4. Incentive trips & happenings (4000 people have just spend 5 days in TFS)
5. Successstories with personal faces!
Our visit to oriflame raises the question:
Is Oriflame a symbol of the ANTI trends towards the e-com based society & community?
Is the fysical enteraction and meeting amongst people becoming increasing important in a digitalized society?
1. Advertising change – foreign brands coming in investing in mass media.
2. The salary development I Tjeck Republic is high (10% pa) puts the Oriflame distribution model and margins) under pressure
Innovation in Oriflame
1. 80.000 creators around the country! Free to invent all sorts of happenings themselves
2. Fysical meeeting amongst people the most important thing
3. Innovation brainstorming book used every day: “Six thinking Hats”.
4. Many meetings with the consulents ca. 100 people. Round tables discussions, It council, Crystal Ball, Top Club etc.
The importance of corporate culture & values?
1. Culture & Values THE MOST IMPORTANT THING
2. Ethical values made by the founders (still valid)
3. Charity important
4. Incentive trips & happenings (4000 people have just spend 5 days in TFS)
5. Successstories with personal faces!
Our visit to oriflame raises the question:
Is Oriflame a symbol of the ANTI trends towards the e-com based society & community?
Is the fysical enteraction and meeting amongst people becoming increasing important in a digitalized society?
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