“The growth rate was 16 percent, above that of the market, with an average value of 15 percent last year. Oriflame Romania’s market share is 10 percent,” Tatoiu added.
The company continues to expect growth in 2009, but at a slower pace than in the previous year, due to the fact that consumers are adapting to the effects of the financial crisis. “In the context of the crisis, Oriflame is redrafting its budgets, as do all the companies on this market. This means an 80 percent cut in our marketing budget,” said the company’s General Manager.
Regarding human resources, “we are recruiting mainly persons from competitors that have filed for bankruptcy and direct selling specialists, from insurance companies,” Tatoiu explained.
According to the company’s General Manager, the first three quarters of 2008 were spectacular for Oriflame’s business and the cosmetics market, while the final quarter was a disaster. This downward trend has continued in this year’s first month, and the market is expected to decline in 2009.
The European Oriflame company is the 20th largest company worldwide and the fifth-largest direct selling cosmetics company, after the U.S. Amway, Natura, New Skin, and Avon companies.
