QNet Evaluation Report May 2014

Key Activities Historical Data

Reputation Management via endorsing QNET’s media relations program to enhance QNET’s image amongst the Egyptian local press.

Write ups / Press Releases ( Positive News)

1 write ups 1 interview circulated during May

•Zaheer Merchant Interview in“ Al Shorouk”

1 press release continued from past months •QNET’S Egyptian beauty range “BEL & BELLE” exceeds expectations •E-LEARNING AND NETWORK MARKETING GO HAND IN HAND at QNET •QNET latest watch: A Piece of Art with a spiritual essence .Published 7 times in both Online and Print. -Total print coverage : 6 clips -Total online coverage : 1 hit Main Media channels of QNET news coverage: Print :- Allam Al Youm and Al Shorouk Online: Al Shorouk

s/n Announcement Market Number of Clips

1 QNET’S Egyptian beauty range “BEL & BELLE” exceeds expectations

Egypt 3

2 E-LEARNING AND NETWORK MARKETING GO HAND IN HAND at QNET

Majority of our female students are from MENA region, says QNET

Egypt

1

3 QNET latest watch: A Piece of Art with a spiritual essence Egypt 1

4 We are negotiating with the Trade Ministry to introduce a Direct Selling Regulating Laws

Egypt

2

Content

6

1

Language

Arabic

English

Coverage language Breakdown

QNET’S Egyptian beauty range “BEL & BELLE” exceeds expectations

In late 2013, Asian direct selling company QNET launched a partner program by tying up with Egyptian cosmetics business Bell & Belle from Alexandria. This program allowed QNET to partner with local small and medium businesses and provide them with a platform through their e-commerce website to reach a captive market of QNET’s existing distributors. At the end of first quarter, QNET reports that more than 2000 products from Bell & Belle’s range of skin care and hair care creams have been sold through the partner program all over Egypt with further demands from UAE and several African countries where QNET has a customer base. A recent report by research firm Euro monitor International suggests that overall penetration rate of e-commerce in the Egyptian population is still low at 3.4%but Egypt’s online purchases are expected to more than triple by 2016, with Egyptians spending as much as $447.3 million on e-commerce. “The e-commerce ecosystem in Egypt still has a lot of room for growth. As long as innovators are able to overcome the steep hurdles to e-commerce growth in the market, Egypt has the potential to be one of the largest customer bases in the region.” Says Haldun Arin, CEO of QNET. Women cosmetics industry has grown in the last three years with an annual revenue of around 3billion EGP. According to market reports, Egypt is one of the countries with high growth potential for beauty products in the Middle East.

Bell & Belle product range currently sold through QNET include a face lightening cream containing watermelon extracts with vitamins C&E, an Aloe Vera and grape-seeds face moisturizer and a hair bath cream rich with natural proteins, rosemary, biotin, garlic, and jojoba oil. The products are all made from natural herbal extracts and are all approved by the Egyptian Ministry of Health. “Ancient Egypt is well known for having heralded the beauty industry as we know it today. So, it was a logical choice for us to partner with a local manufacturer who uses traditional secrets to produce this fantastic range of beauty products. The response has been overwhelming with testimonials pouring in about the effectiveness of these products and demand from neighboring countries,” adds Haldun. Eman Mohamed Abdel Salam, a QNET distributor is a loyal user of the Bell & Belle moisturizing cream. “I love how quickly the cream gets absorbed into my skin without leaving any traces of grease. My skin looks bright and feels fresh even in the hot weather. The moisturizing effect is long lasting because even after I wash my face, it no longer feels dry.” Ghada Hamdan, a leading QNET distributor had a problem for years with her skin tanning unevenly whenever she was out for long periods under the harsh rays of the sun.

“The skin on the side of the face always turned darker than the rest of my face and it was very annoying having to cover it up with make up, to even out my skin. I used Belle & Bell’s skin whitening cream for 17 days, twice daily and the results are remarkable. Darkness on one side was completely gone and the other side reduced by 90%. My complexion is now naturally even.” Samiha Aly Yehia’s son, Amgad is a QNET distributor and gifted his mother with the moisturizer. She was amazed at the results. “I live in Egypt and my son is abroad now. He gave me the facial moisturizer from Bell & Belle and I started using it every day. I love the supple feeling it gives me on my mature skin and the calming lavender scent. When my tube was about to finish, I called my son and asked him to order me another one! I can’t live without it now.” Says Mrs. Yehia. The products are not just a hit with women but also with men. Dr. Mohammed Afifi is impressed with how well the whitening cream worked on lightening the dark spots on his face. “I’ve had these spots on my face for 10 years and nothing has worked on them. I started using the whitening cream from Bell & Belle and the effect was immediate, like magic. The spots have been fading with every application. This is a truly incredible product!” he says.

“We clearly have a winner with the Belle & Bell products and are planning to take it international. We are in the process of registering it in the UAE which is our regional headquarters so that we can distribute this widely in the MENA region where we have approximately 2 million customers”, explains Haldun Arin

Publication: Al Alam El Youm

Country: Egypt

Circulation: 164,070

Language: Arabic

Summary: In late 2013, Asian direct selling company QNET launched a partner program by tying up with Egyptian cosmetics business Bell & Belle from Alexandria. This program allowed QNET to partner with local small and medium businesses and provide them with a platform through their e-commerce website to reach a captive market of QNET’s existing distributors.

Headline : E-commerce will grow 3 times its current size by 2016 Date: May 1st 2014

Publication: Ict Business

Country: Egypt

Circulation: 10,000

Language: English

Summary: In late 2013, Asian direct selling company QNET launched a partner program by tying up with Egyptian cosmetics business Bell & Belle from Alexandria. This program allowed QNET to partner with local small and medium businesses and provide them with a platform through their e-commerce website to reach a captive market of QNET’s existing distributors.

Headline : QNET’S Egyptian Beauty Range “BEL & BELLE” Exceeds Expectations Date: May 5th 2014

Publication: Al Alam El Youm

Country: Egypt

Circulation: 164,070

Language: Arabic

Summary: In late 2013, Asian direct selling company QNET launched a partner program by tying up with Egyptian cosmetics business Bell & Belle from Alexandria. This program allowed QNET to partner with local small and medium businesses and provide them with a platform through their e-commerce website to reach a captive market of QNET’s existing distributors.

Headline : E-commerce will grow 3 times its current size by 2016 Date: May 22nd 2014

E-LEARNING AND NETWORK MARKETING GO HAND IN HAND at QNET Majority of our female students are from MENA region, says QNET

The President of Harvard University once said, “If you think education is expensive – try ignorance.” Any career necessitates a lifetime commitment to what you do, and that means a commitment to a lifetime of learning. This is perhaps the reason for the explosive growth of the e-learning industry around the world. According to a report by GSV Advisors from Silicon Valley, the global eLearning market is estimated to grow at a Compound Annual Growth Rate (CAGR) of 23% over the next three years, at which time its value will exceed $255 billion by 2017. Access to education has never been more convenient, and the beauty of it is that learning is now an experience that can truly be shared with people across the world. It doesn’t matter who you are or where you are from—or what age you are—if there’s something you would like to learn about, you can do so anytime you like. As the eLearning market continues to grow from strength to strength, so too does another young industry in the region–direct selling. The World Federation of Direct Selling Associations (WFDSA) which represents direct selling associations from more than 60 countries, reports that the market size of the industry globally grew 5 per cent last year to hit US$154 billion in sales. Globally, approximately 90 million people are involved in the direct selling business.Therefore it won’t come as any great surprise that both these sectors are helping each other grow.

QNET, the prominent Asian direct selling company, is seeing growing demand for its online education programs offered under the brand Swiss eLearning, across a wide range of demographics in the MENA region. The courses designed by the Swiss Management Centre (SMC) University, accredited by the Accreditation Council for Business Schools and Programs and ranked No.3 in Europe for online education by Newsweek magazine, range from academic programs such as the Accelerated Bachelor of Business Administration and the Accredited Online MBA program to non-academic niche courses in e-Commerce, Entrepreneurship, Presentation and Communication Skills, Career Design, Marketing and The Art of Management. “E-learning is becoming increasingly popular across the region’” says Haldun Arin, , QNET’s Chief Operating Officer “I recently read a report that the industry has experienced 8.2% annual growth and has generated approximately USD 443 million in 2013 in the Middle East.” “Our e-learning courses are the second most popular purchase in the MENA region. In Egypt alone around 4000 persons subscribed to our education products” added Arin. The framework of the Swiss eLearning Programs are based on the concept of 'continuing education'; a post-secondary education programme that is set up to provide further enrichment, whether professionally or personally.

“Our programs focus on relevancy, blending theoretical knowledge with applied practice, and a feedback loop to reinforce the continued effectiveness of the curriculum. The courses are designed to enhance business and communication skills, two important criteria for the direct selling professional.”, says Arin. QNET recognizes that a strictly structured, tightly framed environment like that of a traditional university or classroom setting is not the most suitable for the dynamic and busy schedules of direct selling professionals. "As a result of the fast-paced lifestyle, there is little time left to fit in the things we would like to do, especially with regards to education." says Arin. “That is why we partnered with SMC University to launch the eLearning programsso that our distributors can gain two-fold benefits from this. Firstly, they gain knowledge and secondly by promoting the courses to others, they create an income stream for themselves.” Studies have also indicated that general offline enrollment ratios for females in the Middle East and Egypt are generally lower than males. In Egypt there is as much as 20% lower female enrollment than males with higher dropout rates due to social and traditional barriers.

One striking benefit of online education options for women in the Middle East is the idea that e-learning programs can sidestep many social barriers. With increasing Internet penetration in the MENA region reaching 43% in Egypt, e-learning is becoming very popular with women who want the flexibility to learn from home. “At QNET, we were pleasantly surprised to find a large number of female students subscribing for our e-learning courses from the region.” Added Arin. eLearning pioneers expect that the new age of education will allow learning to truly “blend with our everyday activities”. The World Economic Forum has even listed eLearning as one of the top technology trends for 2014.

Publication: Akher Al Anbaa

Country: Egypt

Circulation: 10,000

Language: Arabic

Summary: The President of Harvard University once said, “If you think education is expensive – try ignorance.” Any career necessitates a lifetime commitment to what you do, and that means a commitment to a lifetime of learning. This is perhaps the reason for the explosive growth of the e-learning industry around the world. According to a report by GSV Advisors from Silicon Valley, the global eLearning market is estimated to grow at a Compound Annual Growth Rate (CAGR) of 23% over the next three years, at which time its value will exceed $255 billion by 2017.

Headline : QNET launches the e-learning program SELI in Egypt Date: May 4th 2014

QNET latest watch: A Piece of Art with a spiritual essence

Asian Direct Selling company QNET has recently launched the “99 Names of Allah” watch, an exclusive product for its customers in the MENA region. This beautiful hand crafted timepiece is a work of art designed to remind the user of God and His timeless greatness. The dial perfectly depicts the 99 names of Allah as presented in Islam, in a beautiful Arabic calligraphic inscription that has been crafted by masters of oriental art. The watch comes in two different colors, black and silver to suit clients ‘different tastes “The Middle East and North Africa region is one of the fastest growing markets for QNET with the region contributing to a significant portion of our global sales. As part of our business growth strategy, we always try to customize our product offerings to suit cultural sensibilities. With the launch of this watch, we would like to show our respect and appreciation to our partners and customers in the MENA region,” explained Haldun Arin, CEO of QNET.

Publication: Akher Al Anbaa

Country: Egypt

Circulation: 10,000

Language: Arabic

Summary: Asian Direct Selling company QNET has recently launched the “99 Names of Allah” watch, an exclusive product for its customers in the MENA region. This beautiful hand crafted timepiece is a work of art designed to remind the user of God and His timeless greatness.

Headline : QNET launches the 99 Names of Allah in The Egyptian market Date: May 4th 2014

We are negotiating with the Trade Ministry to introduce a Direct Selling Regulating Laws

Zaheer Merchant Director of Corporate Affairs in QNET, talks about the direct selling promising industry and that regulating laws are needed to pave the road for the industry to grow.

Publication: Al Shorouk

Country: Egypt

Circulation: 150,000

Language: Arabic

Summary: Zaheer Merchant Director of Corporate Affairs in QNET, talks about the direct selling promising industry and that regulating laws are needed to pave the road for the industry to grow.

Headline : We are negotiating with the Trade Ministry to introduce a Direct Selling Regulating Laws Date: May 18th 2014

Publication: Al shorouk

Country: Egypt

Link: http://bit.ly/1n6FbkM

Language: Arabic

Summary:

Zaheer Merchant Director of Corporate Affairs in QNET, talks about the direct selling promising industry and that regulating laws are needed to pave the road for the industry to grow.

Headline: We are negotiating with the Trade Ministry to introduce a Direct Selling Regulating Laws Date: May 18th 2014

Tone

0

1

2

3

4

5

6

7

8

Negative positive Neutral

Tone

Tone

Online Coverage

NO of Hits

Top Coverage

Hits

1

Al Shorouk

QNet key Online coverage

QNet key Print coverage

Print Coverage

NO of clips

Top Coverage

6

Allam Al Youm Al Shorouk Ict Business

Thank You