Download - Market study. Russia. Bebe de Paris
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Franchise network Your best franchise opportunity
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contents Business concept. Founders & Shareholders. Timeline. Vision and compe>tors. Why we are different?. Distribu>on channels. Client profile & marke>ng. Product range. Baby baskets. Order history.
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The heart of the company. Interna>onaliza>on plans. 12 reasons to choose bebedeparis. Franchise condi>ons and entry fee. Franchisee Profiles. Franchise selling process / Execu>ve summary Business keys. Let´s talk.
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Our business: births! There will always be births – making this a very reliable business.
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The business
bebedeparis is leader in the Spanish baby gi;s sector:
. 7.540 gi;s per year.
. An emergent e-‐commerce business.
. Time to internaEonalize.
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The business
bebedeparis is a leading company with more than 20 years of experience in its sector: Baby GiVs for Newborns.
The company targets people or companies who want to send a giV to the new parents.
bebedeparis offers a large catalogue containing more than 200 different baby gi; baskets, covering a broad price range starEng at €50 up to €300.
The delivery of the gi;s is in less than 24h. The gi;s are delivered by our perfectly uniformed bellboy in Madrid and Barcelona. Other ciEes, private delivery service.
Given the success of our products and the increasing number of shops who wish to order our products, Bebedeparis has started a new commercial line by wholesaling to mulE-‐brand shops.
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The business The business started in 1994 with a babies’ shop in Barcelona.
Now in 2015, the business in each country consists in retail sales (with no shops) to customers and also wholesale selling to mulE branding babies’ shops.
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Founders & Shareholders
Elena Gomez del Pozuelo Founder / General Director
A serial Internet entrepreneur with more than 11 co-‐founded companies. Expert on e-‐commerce and digital markeEng. President of Adigital (the Spanish Digital Economy AssociaEon).
es.linkedin.com/in/elenagomezdelpozuelo
Sara Fernandez de la Aldea Founder / CEO
Internet entrepreneur with 22 years experience in product design, logisEcs, imports and exports. Responsible in dealing with customers and prospects.
es.linkedin.com/in/sarafernandezdelaaldea
Luis Comas Founder
A well-‐known lawyer in Spain. Over 30 years experience advising MNC. 17 years as global legal leader at PWC. Currently General Counsel and member of the Management Board of the Volkswagen Group in Spain.
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Shareholders
Juanjo Azcárate
CEO at CCC. Vicepresident of Adigital. Founding shareholder at Womenalia, GesEón de Medios (Zenith OpEmedia), Incipy, Inesdi, Increnta, Incube, Yoquieroescribir, HallSt…
Alfonso Torres
CIO at AUIRGA GLOBAL INVESTORS. Shareholder and member of the Management Board at Womenalia, HallSt...
AROÑUCA 2007 SL
Represented by Rafael Saenz de Santa María and Juan Saenz de Santa María. Business angels specialized in technology based start-‐ups.
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2011 2014
CHANGE BRANDING
FROM “la Cigüeña del Bebé” To “BebeDeParis”.
2015
Chronology OUR BIRTH
La Cigüeña del Bebé S.L. started in Barcelona with a shop.
Sara Fernandez was in charge of the business
1994
ECOMMERCE Elena Gómez Incorpora>on.
Central warehouse Madrid
We opened a showroom in Barcelona.
Wholesales Opening of the new
wholesaling commercial line.
PRESENT interna>onaliza>on process through
a unique e-‐commerce master franchising concept, gran>ng only
one license per country.
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Vision To create the 1st world network in baby gi5s
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competitors A highly-‐fragmented local market.
there is no other international network in baby gifts
.
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. Service, service and service.
. PerfecEon and glamour.
. Fast and elegant. ·∙ Very prepared for selling to companies. . 100% saEsfacEon amongst our customers
and moms. . Word of mouth.
Why we are different?
Our bellboy
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A baby is born.
The customer buys a gi; online or through his phone.
We prepare the gi;.
We deliver it to the hospital or a home address.
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Client acquisition
EXHIBITIONS CALL CENTER OTHERS
E-COMMERCE COMMERCIAL WORK
CUSTOMERS: .Retail
.Wholesale
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Customer Profile 31%
Large Accounts -‐ Mul>na>onal Companies
Small and Medium-‐Sized Companies
36% Individuals
33%
Today, bebedeparis has a fixed clientele, divided into Large Accounts or MulEnaEonal Companies and Small and Medium-‐Sized Companies, with around 12.000 customers only in Spain.
These customers have made special agreements with bebedeparis, as their Human Resources policies include providing a courtesy giV for employees, customers and business partners when they give birth.
The Human Resources Department, or General Manager’s Assistant are normally in charge of buying the gi; baskets.
Some companies may prefer to order their baskets over the phone. The web page also includes a hotline in each country amended by a direct sales person.
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Some of our customers
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Baby baskets
! Personalized gi;s. ! Licenses; e.g. gi;s for football fans. ! Gi;s for special events; baby showers, bapEsms, etc. ! Personalized company gi;s. ! Special gi;s for twins. ! Special gi;s for older siblings. ! Special spa gi;s for moms. ! Special spa gi;s for stressed dads. ! Special gi;s such as photo sessions, baby massages,
baby siong vouchers, etc. ! Special gi;s such as personalized DVDs and books.
! Diaper cakes. ! GreeEngs cards. ! Text proposals. ! Photo frames. ! Xmas presents. ! Gi; vouchers. ! Personalized embroideries. ! DifferenEated baby-‐boy and baby-‐girl gi;s. ! Gi;s are classified by theme, price and occasion (birth,
christening, etc.).
There are more than 200 different giV basket combina>ons available. Customers can choose from:
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Order history Order History in Spain
bebedeparis started its interna>onal expansion in 2014
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The heart of the company The bebedeparis warehouse
The heart of bebedeparis is its warehouse. A well-‐organized storage area of about 300/ 600 sqm depending on the country’s potenEal, fully stocked with products and baskets and serving as the business base for the franchise concept.
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Internationalization plans bebedeparis is now looking for exclusive internaEonal franchisee partners in each country.
The company has prepared a compelling business strategy aimed at bringing success to both franchisor and franchisee.
More than 80 different domains have already been registered worldwide.
.com
.cn
.com.ar
.com.br
.es
.fr
.it
.jp
.mx
.ru
.pe
.co.uk
.de
.cl
.ma
.in
.tw
.at
.be
.dk
.hu
.ec
.pl
.pt
.cz
.se
.ae
.us
.com.ve
.ch
.nl
.hk
.ca
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Benefits of a bebedeparis franchise franchise
12 reasons to choose bebedeparis
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1st reason
The future is online: e-‐commerce and mobile commerce in Europe 2013: €280 billion, + 20% (every year).
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2nd reason Country exclusivity:
Possible franchisee income is very high: ranging from €0.25 million to €20 million, covering 2-‐5% of births in the country in 5 years.
The turnover in each country depends on 3 factors:
1. The number of births per year. 2. Internet penetraEon and development of e-‐
commerce in the country. 3. Purchasing power of companies and private
individuals.
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3rd reason No high street retail store is needed: only a local warehouse (around 300-‐500 sqm on the outskirts of a large city) with no major investment outlay.
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4th reason A secure business that is not subject to fashion, regulatory changes, etc. Babies will always be born and companies and friends will always send gi;s to new parents!.
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5th reason The Franchisor will produce all the products needed by the franchisees network so all the Stocks will be provided by Franchisor.
So franchisees do not have to worry about products. They only have to place their orders 2/4 >mes a year to Franchisor (3 months in advance).
The Franchisor will send the merchandises 3 months aVer the placement of the order.
There is no stock leVovers -‐ only lasEng products that do not change from year to year because tradiEonal gi;s are always fashionable.
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6th reason One of the biggest issues the franchisee may encounter is to senle the right sizes. In bebedeparis we solve this problem by selling just 1 size of baby clothes (3/6 months), and always use tradiEonal colors: blue, pink, white and grey.
Most mothers-‐to-‐be prepare their baby layeme for 0 to 3 months. Therefore, we only offer gi;s for babies aged 3/6 months – it’s much more pracEcal!.
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7th reason The Franchisor provides franchisees network with an exclusive, unique collec>on with the best quality products at very reasonable prices.
The franchisees will order to the franchisor all the products he may need for the next three months, every three months. Nevertheless, the first order will cover the first 6 months and it will be semled by the franchisor.
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8th reason Our unique collec>on can be offered to babies’ shops by wholesales.
Due to the big margin in products, the Franchisee can also become the exclusive distributor of all the bebedeparis products not only by retail but also by wholesaling to babies’ shops.
This allows them to obtain even greater incomes.
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9th reason Become part of a leading interna>onal e-‐commerce network and start doing business immediately (a great deal of mulEnaEonal companies are already customers).
For example, in Spain we already have as customers very big mulEnaEonal companies that could become customers in other countries.
We provide our franchisees with our client contacts in other countries.
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10th reason Orders from other franchisees across the world will benefit all the franchise network, taking advantage of the digital marketing investment across the entire network.
Every franchisee invests around 13% of its turnover in its own digital marketing to get orders online in his country.
The sum of all franchisees’ investments will benefit everyone. For example, there will be Spanish companies with employees in other countries, such as Mexico. The order is paid in Spain but the franchisee in Mexico will dispatch it and get paid by the company in Spain.
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11th reason Franchisees do no need to worry about online and digital marketing as this can be managed by a central agency in Spain that employs SEM specialists (google adwords) in several languages.
If the franchisee has experience on digital marketing he can choose his own agency in his country. Nevertheless he will have a contractual obligation to spend a 9-15% of his annual income for his own digital marketing to promote its own sales.
The Head Office provides each franchisee with its own web in its own language. e.g.: www.bebedeparis.fr, www.bebedeparis.de, www.bebedeparis.mx…
The Head Office will adapt the franchisee’s web to local country legislation and payment methods.
Franchisees should focus on: .marketing the service amongst big companies (human resources or purchasing departments) .logistics, i.e. preparation, personalization and delivery of the gifts.
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12th Reason and the most important reason!
A very profitable investment: the recommended retail price is 3.10 Emes the purchase price.
That is, franchisees have a 70% margin on their sales, which is one of the greatest margins on sales in European Franchises.
Depending on the country, franchisees should start making profit in their second year.
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Russian Federation franchise
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Births in Russian Federation
·1.796.000 babies were born in 2013.
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Consumers • Emotions & feelings when offering
a gift: we have to impress!
• Both final clients and consumers are extremely demanding.
• In Europe 23 to 37 presents during 6 first months of life*.
*Source: Le Marché-Passcréamonde.com: http://bit.ly/1tjqWWZ Puericultura en Francia- Informe del IVEX.
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€25.200
€32.100
€-‐
€5.000
€10.000
€15.000
€20.000
€25.000
€30.000
€35.000
Russia Spain
Purchasing power per capita
Source: The World Bank-GDP per Capita: http://bit.ly/18gtvTm
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Competitors: Russian Federation There is some competition but very atomized,
no specialists in corporate gifts
Specialists: There are some competitors but very small and no specialists in baby baskets and baby boxes with gifts and no specialist in corporations.
We have a good chance to introduce the concept in the market.
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Our direct compe>tors: Specialists
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Our direct compe>tors: Specialists
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What products can work in the Russian Market?
We have contrasted our prices, qualities and designs in the Frankfurt and Paris trade fairs and we have come to realise that we are very competitive
Baby gift baskets usually include:
·Baby clothes in pastel colours ·Accessorize baby products ·Soft Toys ·Toiletry products ·Gifts for mothers .Nappie cakes ·Nice chocolate
Liste de naissance
Preferences amongst Russian mothers
·Baby clothes (the choice of 41% of mothers) ·Baby equipment (32%) ·Toys (only 14% of mothers) ·Nappies (13%)
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2% 4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Russia Spain
The % of total amount of births served in 5 years >me Total births per country
Legal Warning: The estimations hereby shown are based on the bebedeparis experience in Spain, under no circumstance these estimations imply a contractual or legal binding between the franchisor and the franchisee. Furthermore the franchisee acknowledges and assumes that the success of the business and objectives herby shown depends entirely on the franchisee performance.
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99€
112€
90€ 95€ 100€ 105€ 110€ 115€
Russia
Spain
Average order price taking into account PPC and e-‐commerce development
Legal Warning: The estimations hereby shown are based on the bebedeparis experience in Spain, under no circumstance these estimations imply a contractual or legal binding between the franchisor and the franchisee. Furthermore the franchisee acknowledges and assumes that the success of the business and objectives herby shown depends entirely on the franchisee performance.
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3.366.000€
1.882.342€
0€
500.000€
1.000.000€
1.500.000€
2.000.000€
2.500.000€
3.000.000€
3.500.000€
4.000.000€
Russia Spain
Possible income es>ma>ons in 5 years >me
Legal Warning: The estimations hereby shown are based on the bebedeparis experience in Spain, under no circumstance these estimations imply a contractual or legal binding between the franchisor and the franchisee. Furthermore the franchisee acknowledges and assumes that the success of the business and objectives herby shown depends entirely on the franchisee performance.
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Our business in Russian Federation
· 1.796.000 babies were born in 2013. · In 5 years, our objetive is to arrive to 2% of new borns. . That means 34.000 orders in the 5th year. . The medium order will be 99€ . The billing will be 3.366.000.
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Franchise conditions Exclusivity: 1 franchisee per country. The entrance fee includes:
1. Business and brand exclusivity in the country for 10 years. 2. Transfer of know-‐how from a proven business in Spain. 3. Opera>ons manuals: a general manual, an opera>ons management manual, a human
resources manual, an equipment and maintenance manual and a legal manual. 4. 70% margin on every sale, the most favourable condiEons in all the sectors. 5. There is no breaking of the stock as the collecEon is permanent. 6. The central has a disposable stock in the warehouse through out all the season. 6. System of personalised, con>nuous and technical assessment. 7. Support and con>nuous communica>on amongst all the departments and the central. 8. Ini>al trainning (both theore>cal and prac>cal) as well as recycling seminaries. 9. IntegraEon of a consolidated company in the childhood fashion business. 10. Ecommerce plaqorm
280.000€ ENTRANCE FEE
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.Customiza>on of IT pack €10,000 Website in the native language, back office, etc…
Franchise conditions other investments and cash flow needed to open a bebedeparis franchise in a country
.Digital marke>ng investment on its website 15% of the total incomes per year.. From 3.000€/month depending on the country.
.Ini>al stock for the first six months: €60,000,
ENTRANCE FEE
.Es>mated warehouse and office adjustment costs €30,000 Initial investment: civil works, furniture, uniforms…
.3 % royal>es off the total invoice that will be invoiced every 3 months
.Es>mated equipment €22,000 Office equipment, printing machines, embroidery machine, company car…Most of them can be leasing
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Entrance fee levels
• Netherlands, Belgium • Austria, Sweden, Switzerland • Finland, Norway, Denmark • Portugal, Poland, Chile, Canada, Australia
• Rest of the world…
• Italy • Brazil • Mexico • Saudi Arabia
• Japan • Russia • Germany • France • UK • India
• USA • China
Countries -‐ A
€400,000
Possible turnover
€7-‐20M
Countries -‐ B
€280,000€
Possible turnover:
€3-‐7M
Countries -‐ D
€95,000
Possible turnover:
€0.250-‐1,5M
Countries – C €190,000
Possible turnover:
€1,5-‐3M
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Franchisee profiles Relevant
1. Economical capacity. The starEng investment depends on the country. From 200.000€ to 800.000€. 2. Business experience and a client and contact network in the entrepreneurship sector of his country. 3. Entrepreneurship character and capacity to develop an economical acEvity. 4. CommunicaEon and business skills, specially with clients, suppliers and employees. 5. Disciplinary spirit but with capacity to be creaEve and innovaEve. 6. Perseverant. 7. Working capacity and being able to work towards targets. 8. Demonstrated abiliEes in management and an educaEonal background on business, markeEng or similar.
Irrelevant
1. Knowledge and experience in the e-commerce or digital marketing sector. 2. Having an operative warehouse. 3. Sex or age of the candidate are absolutely irrelevant.
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Franchise selling process 1. The Franchisor receives an informaEon request by a candidate. 2. IniEal answer through phone or by e-‐mail by the Franchisor, in order to establish personal contact. 3. Email with general informaEon of the Franchise. 4. Skype conversaEon with the candidate and if it is posiEve , the Franchisor sends the ConfidenEality Agreement ( NDA) 5. Once the NDA is received dully signed, the Franchisor will send specific details as the Franchise Agreement and precontractual informaEon. 6. PreparaEon of the orientaEve Business Plan for the country of the candidate. 7. Discovery day by the possible Franchisee. 8. NegoEaEon and signature of the franchise agreement. Payment. 9. Franchisor visits the possible headquartes of the Franchisee. 10.The Franchisee will receive further informaEon and will receive his training for a week in Madrid.
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Executive Summary
1. BebeDeParis, is a first mover company in the layemes and baby gi;s sector, which was created in 1994 as La Cigüeña del Bebé, SL. 2. BebeDeParis is the 1st global online network in baby gi;s and offers one of the greater margins to their franchisee by offering up to 70% over every sale. 3. There is no need for retail shops, just a warehouse where deliveries are processed. 4. Bebedeparis is looking for internaEonal franchisees in order to offer them an exclusive franchise for each country. 5. The central offices where the logisEc centre is set are located at the Polígono industrial Európolis de Las Rozas, Madrid. 5. BebeDeParis accounts a completely automated system for the communicaEons between franchises and central offices. 6. Furthermore, every franchisee will have its own and exclusive e-‐commerce web from which he can make its retail and wholesale selling. 7. The strategy used by the firm for the expansion is done through its own webpage in Spain and through its franchisees’ webs. 8. Its biggest asset is the centraliza>on of all the processes through its logis>c centre in Madrid: Design, patronage, buying's, logisEcs, commercials, expansion and administraEon. 9. BebeDeParis has a permanent collec>on of classic giVs for babies, whose design is internally elaborated by a professional team. 10. Great advantage: baby gi;s never go out of fashion and we only work with one measure: 3 to 6 months. 11. We always work with the best fabrics. Our designs are recognized by their tradiEonal colouring in the babies world: blue, pink, white or light grey. 12. BebeDeParis accounts as well with a collecEon of stuffed items, cosme>c products and a wide range of complements.
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Business’ keys .70% margin on every sale. Right now, the most favourable condiEons in all the sectors. .Almost 70% of the sales are done by companies that gi; their employees or business associates whenever they give birth and a 30% of the sales are done by individuals to gi; their family and friends. ·∙There is no breaking of the stock as the collecEon is permanent and the central has a disposable stock in the warehouse through out all the season. .System of personalised, con>nuous and technical assessment thanks to a follow up of the sales. .Support and con>nuous communica>on amongst all the departments and the central. .Ini>al training (both theore>cal and prac>cal) as well as recycling seminaries. .IntegraEon of a consolidated company in the childhood fashion business, with more than 20 years of experience and a conEnuous growth.
The franchisees in each country can have up to 3 ways of income.
Income of retail selling (70% margin) .Income of sales to companies and individuals in the Bebedeparis web page of their country. This are automaEc e-‐commerce sales. .Income of sales to companies with an annual agreement for the delivery of baby gi;s to their employees and business associates.
Income of wholesale selling (33% margin): .Income for the sales to baby fashion related shops at their countries. Each franchise is also the exclusive distributor in his country for all the products and collecEons of Bebedeparis being able to sale both to retail shops and online shops.
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Elena Gómez del Pozuelo [email protected]
Sara Fernández de la Aldea [email protected]
TEAM
Founding partners
InternaEonal Team
Ecommerce/digital markeEng: Rocío Carreras [email protected]
InternaEonal expansion: Juan Carlos Agulló [email protected]
Finance/AdministraEon: Rosa Muñoz [email protected]
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elegancesurprisediscretion
glamourmagiccommitment
misteryconfidentiality
giftillusionpresent
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