Expat Chit Chat

Cash flow, the need for Lanka

Shirajiv Sirimane

Sri Lanka should try to increase the cash flow to the country and the best for this is to attract more foreign direct investments (FDI).

The country should create an even better investor climate to attract more FDI's, Managing Director, Oriflame Lanka Limited Per Gunnarsson said.

Heading an enterprise which mainly caters to women, he says the authorities should try to provide better infrastructure facilities to woo investors. "One of the priorities is to have a better road network and a more advanced public transport system," he said.

"Authorities should also try to create a more IT oriented workforce to meet the future demands of the globe. For this a far superior university education system must be in place as the present system is not geared to meet the mercantile sector demands," he said.

Oriflame Cosmetics is today one of the world's fastest-growing cosmetic companies. Oriflame is present in 59 countries and is one of the market leaders in over 30 countries.

A sales force of 2.3 million independent sales consultants market a complete range of high quality skincare, fragrances and cosmetics. Although the company has grown rapidly it never lost sight of its original business concept - Natural Swedish Cosmetics from friend to friend.

Gunnarsson speaks to Expat Chit Chat.

Q: How do you see the Sri Lankan Oriflame market?

It is growing at a very fast rate and I am proud to say that while the region maintains a 37 per cent growth Sri Lanka is definitely doing above that. However the high inflation in Sri Lanka may have a toll in our business in the future.

Q: What do you think is the success for this?

It's the dedicated markers (Agents) who take these products to the masses. One advantage we have in Sri Lanka is that these agents consider marketing Oriflame products as their sole profession. For some families this is their only source of income.

Since rural area customers do not have the knowledge as to how they should use, our agents go out of their way to educate them.

Being an Oriflame Sales Consultant means unlimited income and career opportunities, personal development and a sense of belonging to a friendly global community.

Q: How do you see the local work force?

They are very good and dedicated. It's a major plus for the country. They are well mannered and most importantly have a passion to work which is very encouraging.

Q: What is the future for marketing products through direct sales?

I think the future of marketing would be through direct sales and Oriflame has got the right formula for this.

The personal touch that is evident through direct sales is not evident in other methods of sale and this is why this tradition is still continuing with Oriflame. Direct sales allow customers to get advice and inspiration from people they know and trust. Buying direct is reliable and convenient.

Q: Where is the global cosmetic industry moving to?

Some may be surprised to note that people are now going back to fashions of the 1980's.

This is a new trend. We also note that the youth have a bigger buying power since they have more access to finances than before. Sometimes this is because youth start to get themselves involved in employment at younger ages. In some countries it's the children that decide what mom and daddy should buy.

Q: How is Oriflame performing globally?

It's growing from strength to strength. Oriflame has over 1,1 billion Euros in annual sales and 2.3 million sales consultants, 6,200 employees, more than 800 cosmetic products and more than 100 million catalogues distributed in 35 languages (2006).

Oriflame contributes to the communities in which we operate, not only by providing income opportunities through our distribution method, but also through charity programmes on a regional and a global level, like our involvement in the World Childhood Foundation and Livslust - both under the patronage of Queen Silvia of Sweden.

The company is continuously developing our social compliance programme with the goal of becoming even better corporate citizens.

Q: How do you see the Sri Lankan culture?

The people are very friendly and are always smiling. I have noted that people do not want to announce bad messages in a hurry.

Q: Where would you like to spend your holiday in Sri Lanka?

The country has very nice beaches and I love to spend my free time on them with my family.

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My Boss

Head of Finance, Oriflame Lanka, Lasanthi Fernando says that it is easy to work with foreigners and easier to work with the Swedish. "They are not arrogant and I like that. Their accent too is easy to understand," she says.

"He gets upset when he finds out that people are not organised and have not planned whatever they are doing. He likes his staff to be professional.

"He has learnt many things in Sri Lanka and it is very pleasant to note that he can drive on his own and find any place in Sri Lanka without getting assistance. He has mastered the country. I learn many things from him as he is a very good leader," Fernando said.