Country Focus
May 2011
Small Market with Big Potential, Says Oriflame
Leadership development is the way forward.
International prospecting day in Limassol: Evagelia (National Sales Manager) is joined by Beauty Consultants Alexia Christoforou (Manager), Christina Vasiliou (Director), Omiria Vasiliou (Manager) and Maria Iosif (Director).
Cyprus is a ‘small market with big potential’, according to Oriflame, which opened here in 2000, having previously been represented by a licensee.
For the past 10 years it has operated as an independent company sharing a management team with Oriflame Greece. The company has an office in Nicosia and a warehouse in Limassol, and is one of the few direct selling organisations who have chosen the direct entry route.
General Manager Konstantinos Marinakis explained: “This is a small population but the level of spending is high, higher even than Greece. When we opened here we combined the local knowledge and experience of our licensee with our successful multilevel marketing model, which offers a greater business opportunity to consultants.
“Economies of scale and synergies in terms of management and running the business mean we keep overheads down and profit up.” Sales this year are expected to reach €5.5 million despite a worsening economy, with signs of a similar economic downturn as seen in neighbouring Greece. Experience shows that close links between the two countries inevitably mean what happens in Greece is reflected here.
“Until a few years ago there was zero unemployment and now it is around 6 or 7 per cent,” added Konstantinos. “Consumer spending is falling and this year will not be an easy time. To combat this situation, leadership development remains our focus, with the objective of increasing the number of Beauty Consultants who reach the higher director level.”
Oriflame’s success in Greece, where it is the No 1 direct seller, is being steadily replicated here as consumers welcome the Swedish company’s commitment to using natural ingredients in its high-quality beauty products. Recruitment is buoyant, as people seek out alternative income streams, and strong plans are in place to enable the company to maintain the double-digit annual growth that has been achieved since it opened.
“Our priorities for this year are to continue our leadership development through the established Oriflame process and through the training programme of the Oriflame Academy, to promote the business opportunity and our value for money product concept,” added Konstantinos. “My ambition for Cyprus is to double our market penetration within the next five years!”
