The world is changing rapidly. Powered by a vast amount of information, millennials have grown into a consumer powerhouse, but even these millennials themselves are divided into old and young as the generation gap deepens. Furthermore, there are now new Gen Zs—those aged 15 to 25—that are coming along. They are even more IT-friendly and more open to digital technology and culture. As a result, many indie brands tailored for this emerging generation are beginning to appear. The old Gen Xs, of course, cannot ignore this change. The decreasing working age population along with a slow rate of population growth is now a serious social problem. It has been observed that the share of people in their 50s and 60s is growing while the rural population is in decline. Interestingly though, the number of midlife people in rural areas is not going down; it is, in fact, growing as people begin to return to their hometowns. In short, this population change is not what it seems when we look at it more closely.

 We, therefore, must stay sensitive to trends and changes. Unfortunately, we have failed to promptly respond to the changes in e-commerce and multi-brand shop channels that have grown rapidly over the past years. As such, we need to keep our eyes and ears alert for how trade negotiations between the U.S. and China go. Many cities in the ASEAN region, including Singapore, are evolving much like Shanghai did in the 1990s. In other words, our market is expanding. Only by keeping our finger on the pulse of the world, the industry and customers, we will be able to keep up with the trends.

 In particular, our top priority needs to be keeping up with the ever-changing customers. There are multiple generations living together in this world, but in the context of the customer, the most significant change is the flow of information. In this digital age, customers are awash in information. They spend a lot of time and effort in gathering information to help them make good choices. Ironically though, too much information often makes decision-making more difficult. As the old saying goes, too much is as bad as too little.

 With all this in mind, we can gain insight into what must be done. First, we must help our customers make decisions more easily. This is how the Amazon 4-star store became popular. It offers top-selling and trending products that are rated four stars and above. Products must be displayed with full descriptions of their benefits. This must also be shown on the front of the product packaging. Product recommendations have now become more important than ever. This can be seen clearly in all the personalized, subscription services. We can even derive further insight from how a styling service picks up the right clothes for customers and helps them make decisions without spending much time and effort. Second, customers want to be certain of their choices. That's why reviews—mostly written in the comments sections—are important. Reviews are as crucial to those who have already purchased products as they are to future customers. Customers will recommend a product to their friends only when they know for sure that they have made a good decision and will buy it again. In this digital society where everyone is connected, people tend to seek confidence and support for their decisions from others. Third, all these elements together can bring change. As such, we need to understand the importance of experience and think of how we can change it, one step at a time.

 How do you think we should keep up with these changing needs and wants of customers? Keywords these days are innovative products, customer experience and digital. Nothing happens though if we do not take action and simply spout out slogans. One such slogan that we have heard more than enough since childhood is to be careful with fire. The words themselves though are meaningless without action. A fire extinguisher should be located at the right place and well-maintained so that it can be used when needed. Also, there should be a manual on hand to explain how the fire extinguisher can be used. Fire sensors and sprinklers should be managed to ensure that the sensor detects any fire and triggers the sprinkler. Similarly, fire alarms must be monitored as well. There also needs to be a set of everyday practices to prevent fires in the first place. For example, electric heaters should be checked, not too many electrical appliances should be plugged into one socket and old wires should also be replaced. All of these steps can prevent fire but only if they are followed through with actions, not merely words.

 To develop innovative products, create customer experience and undertake digital transformation, we must i) think from the perspective of the customer and take ii) small but iii) practical iv) actions. That's what "Test & Learn" is about. However, without customers at our heart, our actions are pointless. Moreover, there is no point in following the same old ways of doing things. "Test & Learn" requires customer-centered ideas and small, but practical actions. And, as part of practical actions, we will adopt 4DX (4 Disciplines of Execution), Design Thinking and Town Hall Meetings and innovate the way we work.

 Last year, we invested much in the integration of Beauty Point, and now we have to make the best use of this in order to bring in new customers while retaining existing customers. ARITAUM omni-channel is off to a great start, but we must keep this evolution rolling—and perhaps undertake new tests every month. ETUDE HOUSE should develop and introduce trendy products that appeal to Gen Zers through small but practical actions. Moreover, IOPE requires a more sophisticated marketing campaign to target Gen Xers. There is now more than ever before a broader range of potential customers, and as such, a targeted approach will be more effective. Regional offices, therefore, must develop a more customer-friendly sales technique using the door-to-door sales system. As mentioned earlier, the senior population is increasing while the number of teens and young adults in their 20s is decreasing and is becoming concentrated in urban areas. We need to study the size, structure and distribution of populations in order to develop and use the appropriate strategy for each situation. Older generations did not care much about their health when they were young, but young generations today are different. They have become highly interested in their health, which means that our healthy food can be appealing to them. Accept this challenge and take action. Test & Learn!