On the eve of the New Year, I looked back to the year 2000 and how we welcomed with excitement the beginning of the new millennium.The whole world was swept up in the huge wave of information technology moving rapidly toward globalization through which people from all around the world could interact with each other beyond time and space.At that time, we had an expectation that we could take our business and expand into the global market.At the same time, we also had a desperate need for making high quality products catering to customers around the world.We set two rules: Rule 1, the customers are always right. Rule 2, if you think the customers are wrong, go back to Rule 1.These rules were built upon our topmost important value, Customer centricity.Following these rules and with this value in mind, we have since paved the way for a more beautiful world.

Over the past few years, we have faced many difficulties because we failed to keep up with the changes in our customers, their attitude and their expectations in the era of digital transformation.Let us look back on whether or not we have fully prepared ourselves and acted up to our golden rule of customer centricity.Our old way of doing business may have worked well but unless we let go of the past, we cannot move forward toward customer centricity.

How should we lay out new strategies to achieve customer centricity this year?

First, we must strengthen the competitiveness of our brands.
There are thousands of -cutter products jockeying for market share in each category.Plus, our customers are increasingly being split into two groups: those seeking cost-effectiveness and those who prefer luxury goods.Their consumption behavior is also becoming divided: a more traditional notion of "buying" products in terms of what functions they have to offer and a relatively newer notion of "shopping" for products that would represent individual uniqueness in terms of who they are and what they prefer.What this means is that we must take one step further from merely meeting the needs of customers who want to "buy" products.We need to deliver the special value of shopping for our customers.To this end, we must keep up to date with the trends to uniquely position our brands with each of them having an original brand story to tell and engage with the customers and strengthen their market presence.The key to strengthening brand competitiveness is innovative products.We must present innovative products that are inspiring and completely differentiated from others.

Second, we must enhance the customer experience.
The value of the customer experience has always been a point that has posed challenging questions to us and led us to think deeply, and it is now still a powerful aspect of what we do.Customers today want to own less, and experience more with their spending.You may be under the impression that all customers are the same. However, Gen Xers and millennials look for different things in their customer experience.We need to enable customers to enjoy their experience and express their unique identities and wants to the fullest through their shopping.Customers are not merely buyers anymore. They are now playing the role of creative producers.As such, we must offer them the value of a more differentiated, more personalized experience that no one but us can create.Carefully plumb their dreams and aspirations about what a happy life is like for them and reflect the value of their lifestyle into the customer experience that we offer.

Third, we must go full speed ahead with group-wide digital transformation.
It is not only among millennials and Gen Zers but now also the so-called "Onlife" is increasingly taking roots among Gen Xers.Super digital technologies, such as social media, AI and block chain, are being integrated into every fabric of our daily lives.In this era of omni-channel where the lines between the physical and digital worlds are blurring, only a company that ensures a smooth, seamless connection between online and offline will survive.Our traditional strengths will be a strong stepping stone for our survival and further growth.For that though, we must use wisely what the Industry 4.0 has brought to us.We must create our own original digital loop to provide a better and more diversified customer experience.The use of big data to uncover the hidden needs of customers in the entire value chain and interact with customers along every step of their journey based on genuine communication and empathy will enable us to take the lead in the age of digital transformation.

This year, we must strengthen the competitiveness of our brands, enhance the customer experience and speed up our group-wide digital transformation to ensure that our customer-centric management becomes a steadier and more robust one than ever.

Further, we must focus on profitable growth, not simply achieving goals and take up new challenges.Let us be the first to go into uncharted territories full of opportunities.Actively pursue to expand our presence in the global market, starting from APAC including our close neighbor, China and ASEAN, and far beyond Europe and North America, including the U.S., to other regions.The door-to-door sales channel, ARITAUM, innisfree and ETUDE HOUSE must step up their efforts for a new leap forward with renewed vigor.
To see this through, I will be right there next to you, every step of the way forward.

This year again, we will fulfill our role as a being responsible corporate citizen as a group and grow in harmony with our customers and the society and environment we are embedded in as we have always done, and thereby take the lead in helping customers lead happier lives and creating a more beautiful and healthier world.

And we all must find joy and meaning in what each of us does and grow into a better version of ourselves.That is how we can together build a great place to work.We will particularly give full support to our millennial members having strong aspiration for growth, so they can take the lead in our digital transformation.

In 2020, let us put customers at the heart of our actions and thought. We must always be customer-centric.And I'd like you to have a deep respect for each other regardless of gender and age and together build a strong foundation for close collaboration. Be sincere to yourself and passionately work toward becoming the first and the best in your field, so you can take pride in yourself.

Our growth depends on what we do, and our future depends on our growth.Every department including R&D, production, sales, marketing and support must work together closely with agility to drive changes and make innovation happen.Your actions, however small, will thrill both our customers and the market.A single spark can start a prairie fire. Start with small steps.

Let us look forward to Exciting Changes and grow together through new changes and innovation! May the New Year bring the gift of good health and beauty!
Thank you