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successful extra income. Our vision is clear: We intend to become one of the global leading direct sales companies. To this end, Russia is a huge milestone for sustained success,” said Dr. Jens M. Abend, CEO of LR Health & Beauty Systems, with delight regarding the imminent launch. Attractive location in the center of Moscow LR is launching its business from its headquarters in Moscow. The newly established distribution center (DSC) in Tulskaya Business Center is the perfect location for the delivery and collection of products. The company has an office complex, meeting rooms and a warehouse. It is envisaged to set up comparable locations at strategically important sites in future. “There are already thousands of pre-registered sales partners who want to work for LR in Russia. We expect a high five-digit amount of them until 2012. Moreover we plan to have five to ten additional DSC in the years to come. We are really looking forward to future challenges and possibilities,” said General Director for Russia, Dr. Sharmila Chatterjee, with optimism for the future. Direct Sales - A promising industry This trend is confirmed by the development of the number of direct sales partners in Russia. From 2006 to 2010 the number increased by 76 percent from 2.5. to 4.4 million* according to the local Direct Sales Association (DSA). The beauty products market is particularly lucrative in Russia. In comparison to other markets, Russia shows higher frequency in the use of beauty products. Russia records 20 percent in comparison to 11 percent of the world population**. Lipsticks, for example, have a worldwide usage of 3.8 percent compared to 7.8 percent in Russia**. While care products have been widely established in direct sales, there is still a major potential in wellness products. The proportion of the population already consuming these products amounts to only 8 percent. However, the growth of ‘Wellness products’ category for the period 2008 to 2010 is 39% by direct sales*. *Source: DSA Russia refers to employees of DSA member companies **Source: http://www.cosmeticsdesign-europe.com/Financial About LR Health & Beauty Systems GmbH LR Health & Beauty Systems GmbH, one of Germany’s leading direct sales enterprises for body care and beauty products, is represented in 32 countries and with 300,000 independent sales partners. Its key factors of success include products with German quality standard, a unique car plan, a fair and transparent LR Health & Beauty Systems GmbH Kruppstraße 55 D-59227 Ahlen Telefon +49 (0) 2382 7060-0 E-Mail info@lrworld.de www.lrworld.de 2
marketing plan as well as the cooperation with celebrities like Bruce Willis, Heidi Klum, Leona Lewis, the Desperate Housewives, Michael Schumacher, Boris Becker and Marcus Schenkenberg. The company attaches particular importance to educating and training managers, which is conducted at its own academy. LR is also a member of the following associations: Verband der Vertriebsfirmen Kosmetischer Erzeugnisse e.V. (VKE) [German cosmetics distributors and marketing association], Bundesverband deutscher Industrie- und Handelsunternehmen für Arzneimittel, Reformwaren, Nahrungs-ergänzungsmittel und Körperpflegemittel e.V. (BDHI), [Association of German industrial and trading firms for pharmaceuticals, health care products, food supplements and personal hygiene products], Industrieverband Körperpflege und Waschmittel (IKW) [German Cosmetic, Toiletry, Perfumery and Detergent Association]. LR is TÜV-certified according to ISO 9001-2008. Photographic material available at www.lrworld.com/presse. LR Health & Beauty Systems GmbH Kruppstraße 55 D-59227 Ahlen Telefon +49 (0) 2382 7060-0 E-Mail info@lrworld.de www.lrworld.de 3
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