Europe's biggest direct-selling cosmetics company Oriflame yesterday
announced that it will launch its business in China.
The Swedish company
is the only European company that received a direct-selling license in China,
which will become its 58th world market.
Robert af Jochnick, chairman and
founder of Oriflame Cosmetics SA, said at a press conference in Shanghai that
China is one of the company's key strategic markets and it expects to invest in
the nation more than any other.
Oriflame received the direct-selling
license from the Ministry of Commerce in September last year. China allowed
direct sales businesses again at the end of 2005 after a ban initiated in
1998.
Oriflame is now allowed to directly sell its products in Nanjing,
Wuxi and Suzhou (including Kunshan) in East China's Jiangsu Province.
"We
plan to complete all the examination and approval procedures next month, and
kick off our direct selling business in these areas," said Helen Chan, managing
director of Oriflame China.
The employment and training of its sales team
will also start shortly.
Meanwhile, Oriflame also plans to open
traditional specialty stores in Beijing, Shanghai, Chengdu and
Guangzhou.
When asked why Oriflame chose direct selling as its sales
model, af Jochnick said that of all the direct-selling products, the growth of
cosmetics was the highest. From 1990 to 2005, Oriflame's sales increased
tenfold.
Only 1 percent of Oriflame's sales are generated in Sweden,
while 99 percent come from other nations.
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