Oriflame is considering a massive expansion in the Russian cosmetics market during the next several years, which is expected to take place through the forthcoming launch of its second Russian plant in Noginsk (Moscow region) which should help the company to significantly increase the volume of its Russian production and sales and to expand the local range, according to Magnus Brannstrom, CEO of the company.
Currently, Oriflame still imports most of its production to Russia from abroad, however there is a possibility that the launch of the new plant will help to significantly reduce imports’ volumes.
The company has already invested about €300m in the Russian market, which now accounts for 50% of the company’s total sales in the post-Soviet space. According to Oriflame forecasts, during the next several years its Russian sales will continue to grow, as the share of cosmetics, sold through the multilevel marketing will also grow from the current 15%-20%.Not yet a Subscriber?
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