German MLM company opens Cebu branch

CEBU, Philippines - Looking at Cebu as a growth area with huge potential, German multi-level company (MLM) LR Health and Beauty Systems recently opened its company-owned branch in the area.

“Cebu has a very big potential for growth because it’s the next big market outside Manila. We have had satellite offices here called stockists before operated by our independent partners. Opening this company-owned branch will provide a big advantage for our stockists in the Visayas,” said LR Health and Beauty Systems general manager Andreas Kemper in an interview.

The Philippines is the first Asian country that the company operated as they considered it a door to penetrating Asia so they put up their main office in Makati, Manila last 2007.

“We invested in the Philippines a lot and we are looking at investing more as we see the country as a door to Asia,” he said.

LR Health and Beauty Systems is a German company that was founded in 1985 that sells high-end health and wellness items and beauty products such as supplements, cosmetics, and perfumes through networking or the so-called multi-level marketing, said Kemper.

He said that in terms of sales performance for the first six months of the year compared to that of last year, they were able to achieve around 10 percent to 50 percent growth depending on the product range.

“Our sales have done very well because of four key success factors and that is the strength of our products which are made with 100 percent quality controlled natural materials, our successful cooperation with our celebrity partners and Mercedez Benz which we give out to our successful partners and the company’s marketing plan itself which is performance based,” said Kemper.

He said that right now the consumers’ trend is going towards patronizing natural products and here in the Philippines, there is a big market for health, wellness and beauty products such as food supplements.

Kemper said that even at times of economic crisis, there is still a big market for their products.

He said that the crisis has a two-way effect to their business; one is that it has become quite harder to sell now a days because consumers have become more conscious in their spending and in a way, it has also helped them increase their partners because many people are now going into networking to earn extra income.

“It has in a way helped our business because people need sideline income. Most are now looking for opportunities because of the crisis and doing this kind of business on the sideline will still allow them to do their day jobs at the same time while earning both ways,” said Kemper.

He said that although introducing their business model was not easy considering the negative stigma of network marketing in the Philippines, they were still able to get together about 9, 000 active partners in their network including 45 stockists nationwide.

“Our targets are not based on figures because our marketing plan is built on how may people we have made successful and how we have changed people’s lives and the business turn over is the result or the consequences of this,” Kemper said.

“Our philosophy is not focused on just recruiting people and earning because joining is risk-free and there is no subscription required. We want our partners to join because they love and believe in our products. Ours is a helping business because we want as many people to be successful,” he added.