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Press Release
Milestone for the future: LR launches business in Russia
• Market entry 1 st . of June 2011
• Initial investments of several million Euros
• gross sales target of over 100 million Euros for the first three years
Press Press contact contact: contact
LR Health & Beauty Systems GmbH
Kruppstraße 55 D-59227 Ahlen Telefon +49 (0) 2382 7060-0 E-Mail info@lrworld.de www.lrworld.de
Michael Hoffmann
Director Corporate Communications
Tel. +49 (0) 2382 7060-106
Fax: +49 (0) 2382 7060-179
E-Mail m.hoffmann@lrworld.com
LR Health & Beauty Systems GmbH continues
to grow, not only in terms of turnover and staff but also through entry into additional markets. The global
company for cosmetics, body care and nutrition will launch business in its 32 nd country on 1st June 2011:
Russia. From its headquarter in Moscow, the German global player will offer its comprehensive product range
via numerous sales partners. The portfolio ranges from celebrity fragrances, Aloe Vera products and
decorative cosmetics through to nutrition. The goal is clear: rapid expansion of the LR concept which has
proven its success over more than 25 years. Additional national offices, distribution centers and warehouses
are to follow. LR’s initial investment amounts to several million Euros and the company expects a gross sales
volume of over 100 million Euros in the next three years.
Russia provides great opportunities
“After two years of intensive preparation, we now look forward to the market launch in Russia. This
extraordinary country - with its people and market - provide excellent opportunities. Moreover direct sales in
Russia show outstanding development. Two-digit growth rates are on the agenda. And: the forecasts clearly
confirm that the Health & Beauty sector is the future. Furthermore, LR has a lot to offer as a global player
from Germany: the company stands for passion, trust and responsibility. We have five unique success
factors: Innovative products of uncompromising German quality standards. We cooperate closely with top
celebrities. We offer our sales partners a fair and transparent business concept and bonus system (marketing
plan) and a professional car plan, training and service, which is unique on the market. The demand of existing
and potential sales partners is already enormous. Therefore, our aim is to offer many people a reputable and
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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
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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
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