Retailing, Franchising, and Consumerism Business Intelligence in China

Oriflame To Launch Direct Sales Operation In China

Swedish-based direct sales cosmetics company Oriflame has formally launched its direct sales channels in China, which is Oriflames 58th market in the world.

Oriflame says it received a license from China's Ministry of Commerce for conducting direct sales services in September 2006. It will adopt two different operational patterns in the regions where it is licensed to carry out direct sales and areas where it has not received the licenses yet.

China is one of the strategic markets where Oriflame places the highest expectations. A representative says that as the first European company that has been granted a direct sales license in China, Oriflame will start its direct sales business in Nanjing, Wuxi and Suzhou and open retail stores in the areas where they have not yet received the license for direct sales such as Jiangsu, Shanghai, Sichuan and Guangzhou.

Helen Chan, managing director of Oriflame China, says that the new direct sales policy in China has little effect on Oriflame for it has already begun conducting direct sales in other countries. Chan says that Oriflame plans to formally launch the direct sales operation in Jiangsu province and begin the recruitment and training of sales staff. In the meantime, Oriflame will open retail stores in Chengdu, Shanghai and Guangzhou. Oriflame plans to establish service networks in the main provinces and regions in China within five years and become one of the leaders in direct sales companies in China.

Founded in 1967 in Sweden, Oriflame is Sweden's larger cosmetics company with several brands sold through different distribution channels.

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