The Vorwerk Annual Report 2OO8

MANAGEMENT REPORT JAFRA COSMETICS / THERMOMIXThe development was inconsistent in the relatively small JAFRA country companiesin Europe. Good progress in Italy had to be seen in the light of stagnating or declining turnoverlevels in other countries. Sales in Europe amounted to 27 million euros (39 million US dollars).A significant milestone in 2008 was the establishment of JAFRA’s own sales companyin the growth market of Brazil. JAFRA has good experience from past years and can build on adetermined base of previously independent JAFRA sales partners. The insights that can be gainedhere will be of significance for the whole of South America.JAFRA has set itself the objective for the future of improving still further theleadership and training of sales consultants, of positioning the products more intensively in theup-market quality segment and of expanding the business into other countries of Latin America,Eastern Europe and Asia. This should enable the success of JAFRA to be more widely supportedfrom several countries thus gradually reducing JAFRA’s continued very strong dependence onthe success achieved in Mexico. Vorwerk is investing at JAFRA in a new manufacturing facilityin Mexico for cosmetics. This will – in the same way as the already established distribution centre– support the course of expansion and enhance, in addition, the quality and delivery reliability.Direct Sales, Vorwerk ThermomixA kitchen appliance that leaves a lasting impression! It combines all the functions ofa universal kitchen processor and, in addition, it can cook and simmer and even enable lessproficient cooks to quickly and simply prepare healthy meals from fresh ingredients. Anyonewho experiences the Vorwerk Thermomix in use in the kitchen is quickly convinced that suchan appliance should be a part of the basic equipment in every household and is something thatno-one will want to do without it in the future.The Thermomix is the prototype of a direct selling product: unique, complex in itsfunctionality and versatile in its application – with benefits that are not easily recognisable atfirst sight. It is not an exceptional product feature that can be highlighted in the specialised retailoutlet or advertising, but the intelligent combination of partial functions that makes it special.Curiosity is quickly aroused among customers. And surprising effects are guaranteed during the22