The document provides information about launching a direct selling company in Russia. It summarizes key details about the Russian market, including that direct sales is growing strongly at 26% annually and the beauty segment is growing faster than in Europe. It outlines a multi-phase launch strategy, including online pre-registration of partners, reduced starter kits, and meetings to support the Russian launch.
2. Welcome Your greatest Challenge 5 x larger than Europe 2 x more growth in the beauty segment than in Europe 50% increase in income per year 13 cities with more than 1 Mio. residents 2 x higher consumption than the world population – your greatest chance to change –
15. Russia is one of the leading economies of the world with a strongly growing BIP per head GDP TOP 15 worldwide (nominal) in 1.000 trill. US$ 2008 # 8 worldwide Quelle: credit suisse, global insight August 2009, cia world factbook 2008 Netherlands Australia Mexico India Canada Brazil Spain Russia 1,7 Italy United Kingdom France Germany China (PRC) Japan United States 14,3 Quelle: Statistisches Bundesamt, Länderprofil Russland 2009 GDP per head, respective prices, in US$ 2005 2,096 2003 2,975 2,377 4,105 5,326 2004 2000 2001 2002 2006 2007 9,103 11,807 2008 1,760 6,929
18. This is also reflected in growing number of independent distributors +22% 2009 4,9 2008 4,4 2007 3,3 Quelle: DSA Russia DISTRIBUTORS IN MILLION (DSA MEMBERS)
19. Beauty segment is a growing category in Russia Russian market still holds huge potential Russia has huge potential for manufacturers to tap into this growth, and according to a report from market researchers RNCOS, this potential extends to both domestic and foreign cosmetic manufactures. The RNCOS report Russian Cosmetics Markets Forecasts 2008−2012, highlights the fact that the cosmetics industry is currently registering one of the highest growth of any industry segment in the country This is highlighted by the fact that the beauty industry registered growth of 11 per cent during 2007, compared to growth of just 3 per cent in the more developed Western European market. Indeed, the report highlights the fact that this rate of growth is set to surge even further, providing average market growth of 13.2 per cent during the period 2008 to 2012. Source: http://www.cosmeticsdesign-europe.com/Financial Skin Care Fragrance Make-up RUSSIA VOLUME FORECAST, UNITS MILL. Quelle: Datamonitor 5,0% 2012 … … … 2008 … … … 2008 46.6 49.8 1.7% 2012 6,7% 2012 … … … 2008 xx% CAGR
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21. Personal Care currently by far strongest segment of all LR products. Other segments with hugh growth potential 5.57% Household products 7.68% Personal Care products 77.67% Others 1.65% Accessories 3.03% Food Supplements 4.40% Detergents Product Split Direct Selling Industry Russia (in %)
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23. Individual business registration required in order to receive bonus Russia tax authorities are very strict, one has definitely to be registered as entrepreneur before receiving any money. Even interim arrangements are not given. NO BONUS NO CAR NO REGISTRATION AT AUTHORITIES
29. LR will start with a reduced product portfolio Product Portfolio Russia 2011 Platinum / Nanogold All statements under reserve of sucessful product registration Fragrance AV-Care Deco Nutrition
30. Attractive pricing at FULL PV/BV Exchange rate: 1€ = 42RUB Retail price gross Russia (in RUB) FULL PV / BV 749 1.059 * 1.149 499 499 999 749 *Rule for Nutritions: buying proce gros = retail price gross Reason: reselling of nutritions is forbiden by law in Russia 1.799
31. Wellknown documents to support your business Collection (April 2011) GV Mappe (April 2011) Konzept zum Erfolg ( Juni 2011) Corporate Movie (April 2011) Decobrochures (Juni 2011) AV – Brochure (Juni 2011) Collection Compact (Juni 2011) Partnerapplication (Juni 2011) Magazin (special launch magazin In June 2011) ü ü ü ü ü ü ü ü ü
32. Starter kit from ~ 1.899 RUB (<50 EUR) 1.899 RUB OR 1.899 RUB Extensive Package of print material
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34. LR Distribution Center is tailored to the needs of our prospective partners Order taking Pick up Small Meetings Business Presentations
35. LR starts in Russia with one DSC Moscow Other DSCs to come Choice of location depending on regional development of turnover 1.000km
38. LR will definitly start the orgaleader car concept Level 1 Level 2 Level 3 LR Polo also planned
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42. Starterkit with a very special price – Only pre registered partners are allowed to order 1.399RUB OR Only for prelaunch partners Delivery from June 2011 1.399 RUB Extensive Package of print material Special delivery fee rate of ~ 5 EUR for preregistered Partners All preregistered partners obtain the possibility to conclude a partnerapplication with the special Starterkit from 01.06. till 30.06. The data of the other preregistered prospectives will be deleted at 01.07.2011
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44. Meeting Calendar April May June July August Sept. … January Show room opening Info-Meetings Official opening in Moscow LR standard Meetings Moscow Special Business Days 1x per week in Moscow 28.05. 9.7. 6.8. 10.9. Regular Sales / Company Presentations All statements under reserve