Dear colleagues, do you remember the episode "Millennials and Sustainable Consumption Trends"? Millennials are ushering in a culture of sustainable consumption based on their strong awareness of social responsibility. To target Millennials consumers effectively, it's important to develop sustainable products and strengthen the sustainability performance of stores as a whole, as it is within stores that consumers experience that moment of truth where they connect with our brands and products for the first time.
Awakening the corporate power within. Episode 2 will explore the sustainability of the retail business, which is in contact with stakeholders and consumers alike.

Consumer power is spreading environmentally-friendly and society-friendly culture across all business activities. This indicates growing awareness of corporate social responsibility across the entire value change. Many sustainability management experts predict that more retail businesses will adopt sustainable retail strategies to meet the needs of young consumers. To guarantee the future growth potential of the retail business, it is essential to develop a business model to enhance sustainability for customers, salespersons and store environments.

(Source : Greenbiz, "What will drive retail sustainability 2015?")

A store is a place where customers experience the brand and products for the first time: in effect, the store is the main exposure point that contributes to the creation of the reputation of the brand and company. Accordingly, there are a growing number of cases where a company intends to strengthen their store sustainability to deliver core values pursued by the company and brand and build a reputation.

As well as environmentally-friendly brands, other brands have sought to build sustainable stores and perform consumer communication. The LVMH Group, which contains luxury brands such as Louis Vuitton and Dior, has continued its efforts to strengthen the sustainability of stores. Given that lighting represents 70% of energy use in stores, the group has developed energy-saving, highly efficient LED lighting since 2012. The group even launched a catalog and website about LED lighting for internal use. The packaging and furniture used in its boutiques are made from woods produced from sustainably managed forests. The group operates a recycle platform titled "CEDRE" to reduce waste. CEDRE is a platform for recycling of used packaging of cosmetics brands such as Dior and Sephora. The group currently operates a platform for testers and old alcohol products in stores and empty bottles collected from stores with the participation of customers.

Sustainability is a hot issue in fast fashion. Consumer awareness is being changed by the advent of an era of low prices and fast turnover of SPA (Specialty Retailer of Private Label Apparel) brands, which are widely known to cause environmental and human rights problems. "Ethical Fashion" is the latest phenomenon as consumers grow interested in the process of production, manufacturing and disposal more than just the label.

Inditex, which owns the major SPA brand Zara, has aggressively implemented a strategy of sustainability management. The company designates eco-friendly stores with improved environmental impact as "eco-efficient stores," reducing the consumption of energy by 20% and water by 50%. The store recycles and reuses clothes boxes, bags, hangers and alarms. Hardboard clothes boxes are reused up to five times in stores before being recycled. Under the campaign "Boxes with a past," recycled boxes are used to deliver products from online shopping malls.

Shopping bags are made from FSC-certified paper, while plastic bags are made from bio-plastic materials that break down easily after disposal. (FSC certification is issued by the Forest Stewardship Council to forest-based products produced in eco-friendly and ethical ways.) The company actively provides sustainability education to its salespersons. It issues manuals related to sustainable store operation and provides internal training programs, regarding energy and water saving and recycling.

Many global companies have already engaged sustainable lifestyle choices by improving the sustainability of sales networks, brands and products. Then, what steps is Amorepacific taking to strengthen store sustainability?

Amid the growing demand for online shopping, the importance of physical store space has in fact increased. A store is recognized as a space to provide a unique brand experience, rather than simply being a place that displays and sells products.

To combine the mission of Amorepacific to change the world with beauty and customers' demands for environmentally and society-friendly sustainable lifestyle choices, we need to strengthen sustainability at moments of truth. We look forward to your interest and support to make Amorepacific stores into spaces for value-conscious consumption. We also look forward to pursuing the beauty of consumers and realizing environmental and social beauty.