Make money today and
fulfill your dreams tomorrow

THIS IS ORIFLAME

make money today and

fulfil your dreams tomorrow™

Some people think Oriflame is a cosmetics company. That is true – Oriflame does sell beauty products. In fact, Oriflame sells beauty products to millions of people all over the world. But that is not really what it is all about. Oriflame offers people a chance to change their lives – whether it is entrepreneurial challenges for the consultants, attractive career opportunities for the employees or unique shopping experiences for the customers – Oriflame’s business is about making money and fulfilling dreams.

Attractive awards and social benefits

Oriflame launched its direct sales method in 1967 – when the Company was founded as a vital part of its innovative business concept. Since then, Oriflame has given millions of people in Russia, Europe, Asia, South America and Africa the opportunity to start their own business, often in countries where the freedom to do business was discouraged or restricted to a self-appointed elite. In that sense, Oriflame has helped tear down walls. Oriflame built the first cosmetics factory in Warsaw after the fall of the Berlin wall, was early to enter countries such as India and one of the first companies to be given a direct sales licence in China.

Oriflame’s business model has proven its resilience, sustainability and validity for more than 40 years – in emerging, as well as mature, markets. The key drivers, such as being your own boss, setting your own goals, the low barriers of entry and exit, the lack of discrimination regardless of one’s sex, ethnicity, age, education, physical condition or financial resources, are all in line with a growing population of entrepreneurs that is less dependant on secure employments.

Although the reasons for joining may vary among the many sales consultants in the more than 60 countries where Oriflame is represented, most of them agree that Oriflame offers attractive financial rewards as well as social benefits, i.e. the possibility to look great, make money and have fun. Some join as a way of supporting their family, while building a business and fulfilling a career dream. Others see it as a way to achieve a more flexible life or make extra money while studying, being in between jobs or simply extending one’s social life. Consultants also join in order to save money through discounted purchases of cosmetics and personal care, by enjoying a discount valid for themselves and their families. The flexibility of the system means that consultants decide for themselves what they want to achieve by joining Oriflame.

Becoming a sales consultant

Becoming a sales consultant is easy and requires no investments or long-term commitments. Sales consultants can make money the same day they join. After a modest fee has been paid, a starter kit is provided. Oriflame offers a variety of training programmes for consultants, ranging from presentation techniques to product knowledge and training sessions in make-up techniques, etc. Advanced training is provided through the Oriflame Academy, most of which is free of charge. The core of the Academy is based on physical meetings held by consultants at leadership level, while more advanced modules are predominantly held by employed sales management. Oriflame is currently piloting online versions of these training courses and expect these to grow in the future as an important complement to the physical meetings. Oriflame offers a wide portfolio of innovative Swedish cosmetics, inspired by nature and using the latest science, at affordable prices – all presented in powerful catalogues. A sales consultant orders products at a reduced price level, the consultant price, and sells to customers at catalogue price. Consultants, who invite others to join Oriflame and build a sales team, earn additional income on the team’s sales. Sales consultant compensation is based on the sales volume of Oriflame products.

A Success Plan rewards sales consultants for their own sales, as well as those of any consultant within their network. It provides an incentive to maximise network sales and to enlist new consultants to grow the scope of their network. Apart from the financial rewards, successful sales consultants and network builders are rewarded with Senior Manager and Director titles depending on their achievements. Every year Oriflame invites the best sales consultants to major international conferences in exotic locations where key initiatives are launched and new products are presented.

Equally important, the conferences provide a venue for leaders to exchange ideas with top management and between themselves. Last year’s so called Gold Conference located in Malta hosted 4,800 leaders from EMEA, CIS and the Baltics. Oriflame has been awarded several times for these extraordinary conference events.

| Oriflame Annual Report 2010

Joining Oriflame has changed my life. Being part of the Oriflame experience, fulfilling my dreams and helping others succeed, has turned out to be a true passion and a great business opportunity.

Mariela Elorduy Blackaller
Mexico

Online support tools increasingly important

The Oriflame catalogue is how the brands and products come to life for Oriflame’s consultants and consumers. The catalogues are literally shops without walls, providing the consultants with their most important, tangible sales tool – making the whole difference between good sales and great sales. By providing the ultimate shopping experience to consumers, the Oriflame catalogue supports the business opportunity to its consultants. The stronger the consumer offer, the greater the potential to sell and grow the business.

Alongside the catalogue, online social networks are becoming significant grounds for sales and recruitment activities, supported by PR, events, leaflets, posters in service centres and, for major launches in key markets – TV, print and billboards. Around 50 percent of the sales force uses the online services and more than half of all orders are placed through the online ordering system. As demand for online availability increases the sales force is provided with new tools that allow them to continue their business activities in this environment, such as phone and Ipad applications, virtual stores on Facebook and a channel on Youtube.

Sales consultants are offered a number of tools to help them succeed, coordinated in SARPIO – Sales and Recruitment Processes in Oriflame. SARPIO is the global platform for processes, training and communication. It has been developed in order to offer consultants support in developing and managing themselves and their businesses, while ensuring that they convey the Oriflame brand in a consistent way. In 2009, Oriflame launched a new management tool for the sales force in most markets. This tool helps sales consultants to track performance of their network and identify action areas that can improve business effectiveness. It also improves communication with the sales force.

Online social networks are becoming significant grounds for sales and recruitment activities.