Oriflame cosmetics to close down Sri Lanka market due to economic challenges.
By: Staff Writer
April 28, Colombo (LNW): Oriflame, a global beauty company, has announced its decision to withdraw from the Sri Lankan market effective 15 May 2024, citing a range of economic challenges that have made its operations unsustainable.
In a statement released, Oriflame expressed deep regret over its departure from Sri Lanka, a market it has been a part of since 1997. Despite years of dedication and resilience in the face of various challenges, the company cited a confluence of factors that have rendered its operations untenable.
“Unfortunately, despite our efforts, the macroeconomic environment, characterised by a series of financial crises, the global impact of COVID-19, stringent import restrictions, fluctuating exchange rates, increased operational costs and regulatory changes has significantly hindered our operations.
These factors have made it unsustainable for us to continue our business in the foreseeable future,” it added.
Oriflame expressed gratitude to its brand partners, leaders, staff and stakeholders for their unwavering support, dedication and contributions over the years.
Special acknowledgment was given to top leaders who have played integral roles in the company’s growth and success, being part of the top 15 council over the years.
“This decision was not reached lightly. We have always been committed to nurturing the Oriflame dreams in Sri Lanka. However, the combination of these economic and operational challenges means that the outlook for our expectations for long-term profitability and growth,” the statement read.
The company concluded by expressing gratitude for the partnership with its stakeholders and extended best wishes for their future endeavours.
Consumer behaviour is not determined merely by economic factors – social, cultural, psychological and demographic factors also play major roles.
Businesses must observe the economic environment, and strategise to side with changing consumer preferences and economic circumstances, a top official of the company said.
The economic turmoil has impacted buyer behaviour and we’ve seen a shift in demand from premium to mid-range products. There has been a definite change in spending patterns, he claimed.
Oriflame provides its primary customers, who are our brand partners, an opportunity to earn additional income. This makes brand partners more loyal to our products as opposed to an ordinary retailer.
Consumers are increasingly seeking convenience in shopping experiences especially through online shopping, speed of delivery to the doorstep, and the ability to seek customer support online and offline. Businesses that provide seamless and convenient experiences attract and retain customers.
Consumer products giant, Oriflame at last decided an end to its operations in Sri Lanka as rising costs and economic challenges along with drop in consumer demand due to their economic hardships,an panalyst said.
