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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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