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Press Release<br />
Milestone for the future: <strong>LR</strong> launches business in Russia<br />
• Market entry 1 st . of June 2011<br />
• Initial investments of several million Euros<br />
• gross sales target of over 100 million Euros for the first three years<br />
Press Press contact contact: contact<br />
<strong>LR</strong> <strong>Health</strong> & <strong>Beauty</strong> <strong>Systems</strong> GmbH<br />
Kruppstraße 55 D-59227 Ahlen Telefon +49 (0) 2382 7060-0 E-Mail info@lrworld.de www.lrworld.de<br />
Michael Hoffmann<br />
Director Corporate Communications<br />
Tel. +49 (0) 2382 7060-106<br />
Fax: +49 (0) 2382 7060-179<br />
E-Mail m.hoffmann@lrworld.com<br />
<strong>LR</strong> <strong>Health</strong> & <strong>Beauty</strong> <strong>Systems</strong> GmbH continues<br />
to grow, not only in terms of turnover and staff but also through entry into additional markets. The global<br />
company for cosmetics, body care and nutrition will launch business in its 32 nd country on 1st June 2011:<br />
Russia. From its headquarter in Moscow, the German global player will offer its comprehensive product range<br />
via numerous sales partners. The portfolio ranges from celebrity fragrances, Aloe Vera products and<br />
decorative cosmetics through to nutrition. The goal is clear: rapid expansion of the <strong>LR</strong> concept which has<br />
proven its success over more than 25 years. Additional national offices, distribution centers and warehouses<br />
are to follow. <strong>LR</strong>’s initial investment amounts to several million Euros and the company expects a gross sales<br />
volume of over 100 million Euros in the next three years.<br />
Russia provides great opportunities<br />
“After two years of intensive preparation, we now look forward to the market launch in Russia. This<br />
extraordinary country - with its people and market - provide excellent opportunities. Moreover direct sales in<br />
Russia show outstanding development. Two-digit growth rates are on the agenda. And: the forecasts clearly<br />
confirm that the <strong>Health</strong> & <strong>Beauty</strong> sector is the future. Furthermore, <strong>LR</strong> has a lot to offer as a global player<br />
from Germany: the company stands for passion, trust and responsibility. We have five unique success<br />
factors: Innovative products of uncompromising German quality standards. We cooperate closely with top<br />
celebrities. We offer our sales partners a fair and transparent business concept and bonus system (marketing<br />
plan) and a professional car plan, training and service, which is unique on the market. The demand of existing<br />
and potential sales partners is already enormous. Therefore, our aim is to offer many people a reputable and<br />
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successful extra income. Our vision is clear: We intend to become one of the global leading direct sales<br />
companies. To <strong>this</strong> end, Russia is a huge milestone for sustained success,” said Dr. Jens M. Abend, CEO of<br />
<strong>LR</strong> <strong>Health</strong> & <strong>Beauty</strong> <strong>Systems</strong>, with delight regarding the imminent launch.<br />
Attractive location in the center of Moscow<br />
<strong>LR</strong> is launching its business from its headquarters in Moscow. The newly established distribution center<br />
(DSC) in Tulskaya Business Center is the perfect location for the delivery and collection of products. The<br />
company has an office complex, meeting rooms and a warehouse. It is envisaged to set up comparable<br />
locations at strategically important sites in future. “There are already thousands of pre-registered sales<br />
partners who want to work for <strong>LR</strong> in Russia. We expect a high five-digit amount of them until 2012. Moreover<br />
we plan to have five to ten additional DSC in the years to come. We are really looking forward to future<br />
challenges and possibilities,” said General Director for Russia, Dr. Sharmila Chatterjee, with optimism for the<br />
future.<br />
Direct Sales - A promising industry<br />
This trend is confirmed by the development of the number of direct sales partners in Russia. From 2006 to<br />
2010 the number increased by 76 percent from 2.5. to 4.4 million* according to the local Direct Sales<br />
Association (DSA). The beauty products market is particularly lucrative in Russia. In comparison to other<br />
markets, Russia shows higher frequency in the use of beauty products. Russia records 20 percent in<br />
comparison to 11 percent of the world population**. Lipsticks, for example, have a worldwide usage of 3.8<br />
percent compared to 7.8 percent in Russia**. While care products have been widely established in direct<br />
sales, there is still a major potential in wellness products. The proportion of the population already consuming<br />
these products amounts to only 8 percent. However, the growth of ‘Wellness products’ category for the period<br />
2008 to 2010 is 39% by direct sales*.<br />
*Source: DSA Russia refers to employees of DSA member companies<br />
**Source: http://www.cosmeticsdesign-europe.com/Financial<br />
About <strong>LR</strong> <strong>Health</strong> & <strong>Beauty</strong> <strong>Systems</strong> GmbH<br />
<strong>LR</strong> <strong>Health</strong> & <strong>Beauty</strong> <strong>Systems</strong> GmbH, one of Germany’s leading direct sales enterprises for body care and<br />
beauty products, is represented in 32 countries and with 300,000 independent sales partners. Its key factors<br />
of success include products with German quality standard, a unique car plan, a fair and transparent<br />
<strong>LR</strong> <strong>Health</strong> & <strong>Beauty</strong> <strong>Systems</strong> GmbH<br />
Kruppstraße 55 D-59227 Ahlen Telefon +49 (0) 2382 7060-0 E-Mail info@lrworld.de www.lrworld.de<br />
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marketing plan as well as the cooperation with celebrities like Bruce Willis, Heidi Klum, Leona Lewis, the<br />
Desperate Housewives, Michael Schumacher, Boris Becker and Marcus Schenkenberg. The company<br />
attaches particular importance to educating and training managers, which is conducted at its own academy.<br />
<strong>LR</strong> is also a member of the following associations: Verband der Vertriebsfirmen Kosmetischer Erzeugnisse<br />
e.V. (VKE) [German cosmetics distributors and marketing association], Bundesverband deutscher Industrie-<br />
und Handelsunternehmen für Arzneimittel, Reformwaren, Nahrungs-ergänzungsmittel und Körperpflegemittel<br />
e.V. (BDHI), [Association of German industrial and trading firms for pharmaceuticals, health care products,<br />
food supplements and personal hygiene products], Industrieverband Körperpflege und Waschmittel (IKW)<br />
[German Cosmetic, Toiletry, Perfumery and Detergent Association]. <strong>LR</strong> is TÜV-certified according to ISO<br />
9001-2008.<br />
Photographic material available at www.lrworld.com/presse.<br />
<strong>LR</strong> <strong>Health</strong> & <strong>Beauty</strong> <strong>Systems</strong> GmbH<br />
Kruppstraße 55 D-59227 Ahlen Telefon +49 (0) 2382 7060-0 E-Mail info@lrworld.de www.lrworld.de<br />
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