Oriflame CEO targets 25% global revenue from India by 2030

Kenneth Campbell, the new global CEO of Swedish beauty and wellness firm Oriflame, wants India to contribute 25% of the company's worldwide revenue by 2030. Campbell, who joined the company just four weeks ago, made India his first market visit to outline this ambition, according to an interview with ET Retail.

Oriflame currently has annual sales slightly above €560 million, with India accounting for less than 10% of that total. Campbell stated his personal goal is for one in every four euros of Oriflame's revenue to come from Indian consumers within six years. He described India as the company's fastest-growing market and its potential number one growth engine.

A Strategic Pivot to Asia

The strategy represents a major shift from Oriflame's historically Europe-centric focus. Campbell argued the global beauty market has evolved, necessitating a new geographical playbook. He identified India, China, and Mexico as key markets for the next five years, with India serving as the company's "launchpad in the Asian continent."

This pivot is not about abandoning the company's core identity. The goal is to modernize and update that model for a digital age.

Modernizing the Direct-Sales Model

Campbell stated the direct-selling model needs updating as consumer interactions move online. The company plans to use technology to empower its network of beauty entrepreneurs, whom he called Oriflame's "most important strategic asset." The aim is to provide systems that allow these entrepreneurs to interact with customers either face-to-face or through digital channels, making their work easier.

In India, this expansion will be aggressive. Oriflame's beauty leaders currently operate in 517 towns and cities. Campbell sees a market nearly 15 times larger and is planning which 500 towns and cities to target next. His goal is to add one million more beauty leaders and entrepreneurs in India by 2030.

Product and Manufacturing Strategy

The product strategy will revolve around three pillars: science-led innovation from its Stockholm labs, Nordic simplicity, and social-media-led trends. Campbell expressed a particular focus on younger, digitally savvy consumers in tier II and tier III cities who aspire to be creators and influencers.

Wellness is becoming a larger part of the growth plan, with Campbell noting a consumer shift towards holistic beauty propositions. Fragrances will also remain an important category for the Indian market.

Crucially, India is being positioned as a manufacturing and innovation hub. Oriflame has signed an agreement with Indian contract manufacturer Akums, which operates 19 factories, and has transferred around 240 products for local production. The idea is to manufacture these products in India first, with the potential for India to become part of Oriflame's global supply chain. Campbell said production will become increasingly localized, integrating both global iconic products and items tailored for Indian consumers.

The partnership with Akums is expected to help Oriflame accelerate production and bring products to market faster.