30 years on, Swedish beauty brand Oriflame scripts its second coming

Swedish direct-selling brand is betting on hyperlocal outreach beyond metros

When Oriflame entered India in 1995, it was among the first international companies, alongside Amway, to introduce the direct-selling model in the country. Tupperware and Avon followed soon after. As it turns 30 this month, the Swedish beauty brand is now recalibrating its approach to navigate a market crowded with global and aggressive homegrown direct-to-consumer (D2C) players.

 

“The focus is on tier-2 and tier-3 cities because large metros are saturated with options,” says Edyta Kurek, senior vice president of Oriflame India and Indonesia. The company has launched mobile-focused digital campaigns in smaller cities and begun registering its presence at local melas (fairs) and festivals like Durga Puja and Ganesh Chaturthi by helping its brand partners set up stalls. “Our ethos remains building communities through communities,” says Kurek, the first woman to lead the company in India. It is also collaborating with resident welfare associations to expand its reach at the hyperlocal level. 

“For years we neglected brand-building because communication through our brand partners was very efficient,” says Kurek, who is dressed in a black leather jacket with a mini air purifier around her neck to cope with Delhi’s deadly pollution. “Now we are working on changing that,” she adds. 

Last year, Oriflame hired a head of brand communication to strengthen its presence. Still, its core remains unchanged: An army of women engaged in direct selling. The number of brand partners has risen from 140,000 to 200,000 in a year. Kurek, 59, who holds a master’s degree in nuclear science from Russia, earned shortly after the 1986 Chernobyl disaster, wants to take this number to one million.

 

However, despite a changing retail landscape, Oriflame has no plans to embrace mainstream e-commerce. “We don’t think we will ever go to e-platforms because our model is still efficient, and the women need this income,” she says. That said, it is not unusual to find Oriflame products on platforms like Amazon. This, Kurek says, is the result of someone buying in bulk on discount and reselling, “We don’t endorse it and cannot vouch for the authenticity of those products.” Instead, brand partners operate their own e-platforms, monitored by an ethics committee and fellow partners who flag misleading claims.

 

The brand acknowledges it hasn’t spoken loudly enough about its popular products, such as its milk and honey range. “We sell large quantities, they’re trusted products, but we just haven’t been vocal about them,” says Kurek. 

 

Oriflame did not share its revenue numbers or investment in India.

 

The pandemic altered consumer behaviour, pushing even the digitally hesitant online. This, Kurek says, has strengthened the brand’s resolve to be more visible. “People learn about products online, but they still consult friends before buying. They search for confidence.”

 

To widen its audience, Oriflame has occasionally worked with influencers, but Kurek remains unequivocal: “Our brand partners are our biggest influencers. Professional influencers might promote Oriflame today and another brand tomorrow, which might not align with our ethos.” She says the brand partners from the Northeast are especially creative and digitally savvy, and make for great influencers.

 

One of the big challenges is capturing the attention of Gen Zs, who currently account for only about 18 per cent of Oriflame’s customer base, she says. “And then retaining them is a whole new ballgame, for Gen Zs love experimenting with brands they see on social media or hear about from friends rather than staying loyal to one.”

 

Then there is India’s discount-driven market, which has nudged the company to launch promotions three to four times a month. “India is the most complex market I’ve seen – and the most exciting.” Kurek is also learning Hindi to better connect with partners and consumers. On a whiteboard in her office are scribbled phrases she practices: Theek hai? (okay?), Shuroo karen? (shall we start?), Sab ho gaya? (everything done?), Arey baba! (hey, come on!), Koi baat nahi (don’t worry), and even Ullu mat banao (don’t make a fool of me).

 

India, she says, is now Oriflame’s second-largest market after Russia, and the writing on the wall shows it is the place to be in. “This is why I believe Oriflame has the opportunity to enter this market a second time.”