In an interview with Today’s Zaman, Johan Larsson, Turkey Manager for Swedish direct sales giant Oriflame, has warned that currency devaluation is hitting profits and may yet derail the country’s burgeoning direct sales market.
Oriflame has enjoyed double digit growth in Turkey since 2008 and boasts 200,000 active sales representatives in the country, however, the weak lira is making market conditions tougher than ever. “We buy the products in euros and market them in Turkish lira here, and a further decline below the 2.3 level versus the euro would make things harder for us,” Larsson told Today’s Zaman.
Oriflame has ambitious goals for Turkey, aiming to beat Avon to the number one spot and grow the market to its third-largest. Turkey is currently one of the company’s top five strategic markets together with India, Indonesia, Mexico and China.