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Oriflame to target middle-end market

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Oriflame to target middle-end market

The Rs 100-crore Oriflame India, a wholly-owned subsidiary of Sweden-based Oriflame International, is foraying into the lower and middle-end of the skincare market in India. To cater to this market, Oriflame plans to introduce ‘Swedish Care White’ range of skincare products under the ‘Oriflame’ umbrella brand next month. The objective is to spur volumes by enabling customers to buy the products at competitive prices.

The range, which comprises of foaming face wash, extra moisture night lotion, moisturising day cream, foaming gel cleanser and light day lotion, night hydro gel, would be marketed through the company’s existing direct-selling route.

Oriflame’s premium range skincare products are priced between Rs 350 and Rs 500 (75 ml), the lower and middle-range products will be available at Rs 100 onwards (50 ml). The objective is to spur volumes by enabling customers to buy the products at competitive prices.

Oriflame has invested Rs 3 crores in marketing ‘Swedish Care White’ skincare range and targets to generate additional seven per cent to the overall sales turnover of the company.

Of the overall sales turnover of the company, 40 per cent is generated from skincare products. The premium skincare range contributes 30 per cent. The remaining 60 per cent comes from colour cosmetics, haircare and toiletries.

Of the overall skincare market, Oriflame targets its marketshare to touch 20 per cent from the current 15 per cent by the year-end 2002.

Of the existing 3.5 lakh distributors, Oriflame India operates through the main 1.25 lakh distributors who are directly connected to the 14 service centres of the company spread across major cities. In a bid to cater to the remaining 2.25 lakh distributors, the company is expanding the number of service centres to 20 by February 2002, at an investment of Rs 2 crores.

Oriflame India expects its sales turnover to touch Rs 200 crores by the year end 2002.


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