Oriflame SWOT analysis – SWOT analysis of Oriflame

Oriflame SWOT analysis – SWOT analysis of Oriflame: Oriflame Cosmetics is a direct-selling business that deals in products for skin care, cosmetics, and other hair care items. The company was founded in 1967. It was based in Sweden and, using the multi-level marketing method, it began distribution of its products throughout the globe. At present, Oriflame’s products can be purchased from their website.

The most popular categories in which Oriflame offers products are makeup, skincare scent, bath and body hair, and accessories for women, men, and children. The company, which aims to realize the desires of people all over the world, offers its clients 3.6 million sales reps who are independent. The business has been operational for over four and a half years and has a robust research and development facility that has around 100 scientists. The company invests in excellent R&D facilities.

Oriflame fun facts: Oriflame fragrances are loved in more than 60 countries around the world. And in most of these countries Oriflame are amongst the Top 5 fragrance sellers.

About Oriflame – SWOT analysis of Oriflame

SWOT analysis of Oriflame

[wp-svg-icons icon=”office” wrap=”I”] Company: Oriflame Holding AG

[wp-svg-icons icon=”user” wrap=”I”] CEO: Magnus Brännström

[wp-svg-icons icon=”user” wrap=”I”] Founder: Jonas af Jochnick | Robert af Jochnick

[wp-svg-icons icon=”calendar” wrap=”I”] Year founded: 1967

[wp-svg-icons icon=”location-2″ wrap=”I”] Headquarters: Schaffhausen, Switzerland

[wp-svg-icons icon=”stats” wrap=”I”] Annual Revenue: Euro€1.3 billion

[wp-svg-icons icon=”bars” wrap=”i”] Profit | Net income: Euro€71.5 million

[wp-svg-icons icon=”users” wrap=”I”] Number of employees: 6000

[wp-svg-icons icon=”pie” wrap=”i”] Products & Services: Skincare | Cosmetics | Fragrances

[wp-svg-icons icon=”globe” wrap=”I”] Website: corporate.oriflame.com

Oriflame Competitors

[wp-svg-icons icon=”pacman” wrap=”I”] Competitors: Yatsen Holding | Revlon | Mary Kay | Avon Products | Amway | Ulta Beauty | Lakme | Lush

SWOT analysis of Oriflame – Oriflame SWOT analysis

SWOT analysis of Oriflame

SWOT Analysis Of Oriflame is brand-based. SWOT Analysis of Oriflame evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing Oriflame’s SWOT Analysis. Below is the detailed SWOT Analysis of Oriflame.

Let’s talk about Oriflame’s SWOT assessment.

Strengths of Oriflame – Oriflame SWOT analysis

  • The history of the brand: Oriflame has a long history dating back to more than 45 years, and is one of the first firms to establish an established marketplace presence using multi-level marketing. The company is also involved in research that is ongoing and has been successful in gaining insight into skin types and related concerns.
  • Ingredients that are natural: Customers these days are more aware of the ingredients they use that are present in each product they buy. Oriflame utilizes natural ingredients in all of its products, and they are not tested in animals for adverse reactions. These two factors increase the popularity of the brand with customers.
  • Three-pronged marketing strategy: Oriflame uses a three-pronged strategy to market its products which includes direct sales, catalog marketing, and online sales. This helps the company reach greater customers, but also offers their customers multiple choices depending on their preferences depending on the situation.
  • Advertising strategy: In stark contrast to competitors such as Amway, Oriflame has never depended on TV or magazines for advertisements. In reality, they predominantly employ word-of-mouth advertisements as well as testimonials from customers that are included in their catalogs, brochures, and websites for marketing, which reduces the promotional budgets by a significant amount.
  • Sustainability Commitment: Oriflame through cutting down the use of paper by displaying products on the internet and improving their logistics system has demonstrated their increased dedication to sustainability, which is a growing issue in the modern world.

Weaknesses of Oriflame – SWOT Analysis Of Oriflame

  • The difficulty of recruiting: Oriflame primarily looks at women who are unemployed or homemakers to hire sales reps. With the increase in the number of employed women increased, Oriflame is finding it difficult to recruit qualified sales reps, which is impacting the business plan.
  • Inability to deliver on the expectations of customers: In a bid to recruit more sales representatives, Oriflame has often been accused of inflating the expectations of its representatives regarding commissions and benefits. But once they are an integral part of the group the representatives are aware that their earnings are in line with the number of sales they can produce and feel disappointed.
  • Issues with quality: I’m looking at the contrast to previous times when the consumer was more exposed to better quality brands, and in comparison to them Oriflame products appear to be low-quality and sluggish. This makes it hard for sales reps to make the required sales for the business.
  • Ineffective training: The achievement of a multi-level marketing company is based on how well the representative can impress the customer, as their only contact with the company. Oriflame doesn’t provide regular training to its employees regarding their products or selling capabilities and the result is that their employees are not in a position to generate profitable business for their company.

Opportunities of Oriflame – Oriflame SWOT analysis

SWOT analysis of Oriflame

  • Need to find something more: As the rate of inflation rises, people who are employed often look for ways to earn an additional source of income to augment their income source. It can be the kind of chance that multi-level marketing firms could focus on, however, with the proper strategies and training.

Threats of Oriflame – SWOT analysis of Oriflame

  • Competition: The main competitor of Oriflame is Avon, Amway, Flipkart, and Amazon
  • Internet retailers: The existence of retailers online makes it easier for the consumer to have access to top high-end brands and more products that are available worldwide at the convenience of their workplace or at home. While Oriflame does sell online, it hasn’t had the same popularity as the top retailers such as Alibaba, Amazon, or Flipkart.

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