Today, we're having the last monthly meeting at Signature Camp. Five years ago, we opened a new chapter of our story here near Cheonggyecheon Stream. Many things have happened over the last five years. In 2013, we had issues with our partner companies and franchise stores and, since 2014 until now, we have seen a global success in cushion sales. But, we are obviously going through somewhat of a rough patch this year. Let's look back at ourselves to find what we have missed, go back to basics and get ready for new challenges.

 There are three big waves coming toward us. A much bigger wave will follow if we fail to edge our way through the waves and it is therefore important that we first know what lies ahead of us. The first wave is slowing economic growth of Korea resulting from aging population. Aging population presents many challenges, but also many opportunities. It really depends on how we take and deal with it. In Japan, companies like 7-Eleven and Uniqlo managed to thrive amid a sluggish economy. This shows that we can do it as well. Pay keen attention to changing consumer behavior followed by low economic growth and make full use of it. The key is to understand how Korean millennial customers think and behave and respond accordingly.

 The second wave is hyper competition along the expansion of Asian markets. China grows and changes fast, and so does Asian markets. There are new technologies and innovations, and definitely more competitions. Success in Asian markets is now highly desired by global companies. India is particularly worthy of note, next to China. India is now at a turning point, just as China was in the late 1990s. India is often likened to an elephant; big and lumbering along but moving steadily forward. ASEAN countries are also seeing the fast growth of the middle class. Taken these changes together, we must explore new markets and confront competitors. Now that global companies are keenly competing in Chinese and Asian markets, we must ride over this second wave of intense competition in expanding Asian markets to achieve sustainable growth.

 The third wave is the current knowledge revolution around the world. This wave, also known as the Fourth Industrial Revolution will bring several changes but among all, we should focus on the shift toward a platform-based business. Many platform-based companies emerged in Korea such as Naver and Kakao and keep on coming. Korea is a little slow, but China is moving fast to create a new consumer environment along with the spread of e-payment systems, for example, Alipay. The sharing economy is another notable change. In China, particularly in Beijing with its wide vistas, bike sharing is immensely popular. The bike-sharing giant, Mobike, represented by its trademark orange bike and its rival, the yellow Ofo are commonly seen in the streets. The key to their success is convenient, easy access to clean bikes provided for users. Likewise, the sharing economy is evolving into many different forms of services. It's not only new business models that come with knowledge revolution. Artificial intelligence means it now takes two or three days to complete a customer survey, which used to require nearly two to three months. A knowledge revolution is happening affecting everywhere in the world, disrupting the business ecosystem and permeating all areas of everyday life.

 There are three tasks that we must do in order to make our way through these waves. The first task is the development of new customer-centric innovative products. Innovation can never be made by a few. It requires the combined effort of everyone – R&D Center, Marketing, Production, Logistics and Sales. Our next innovative product following the cushion will help us spread our beauty across the world. Making innovation in Korea is the way to innovate the world.

 The second is customer experience enhancement. Millennials in their 20s and 30s have shopping behavior that's very different from that of Gen Xers in their 40s and 50s. That's why we need a 2-track strategy for product development and sales; both Gen Xers and millennials are important to us. Meanwhile, millennials seek newness in customer experience, as in everything else. Their everyday life is shared with others through a social media platform such as Instagram. You must have seen people taking photos of their food in restaurants. They share their own experience and, by doing so, spread and reproduce it. Their way of communicating have an influence on the parents of millennial generations as well. There are digital influencers in every industry, including the luxury industry. They are evolving over generations and changing the customer service we know and enjoy today. Leveraging such multi-generational influencers requires considerable efforts. Find ways to change and enhance the customer experience in ARITAUM, innisfree, ETUDE HOUSE and other roadside shop channels as well as the door-to-door sales channel.

 The third is digital. Quick-and-easy-shopping is one of the things that customers want. Shopping speed is what really counts in retail. Customers today learn about the world from Instagram rather than magazines and prefer mobiles over newspapers. Amazon recently made a move into selling prescription drugs online. It's like a mail-order pharmacy delivering drugs based on prescription uploaded by doctors. What's best about it is the convenience of customers not having to walk to the pharmacy. As many companies work to boost their efficiency through digital, we must change the way of doing customer study and quality assurance. Keep a record of the production process and use artificial intelligence to analyze how much ingredients should be mixed and when to ensure high-quality products. Never forget that digital technology is the key to running an online business and changing every part of making, selling and managing products.

 Take a more long-term view toward customers. Put customers at the center and take a practical action, one by one. Nothing will be done unless we take action. Surf the waves because it's safer than sitting still against the rushing waves. See the current crisis as an opportunity to make changes. Now is the best time to surmount our problems. Please, take the initiative to bring about changes.

 Many of you must have no connection with our old Yongsan HQ as you joined Signature Camp. There is often a clear generation gap at work. Understand that each of you can have a different way of thinking. The HR Division will take a rich diversity of opinion from you all. Please, don't hesitate to share your opinion. Let's look back upon our last five years here at Signature Camp. Let bygones be bygones and be the leader at a new chapter of our story in Yongsan.

 Lastly, I heard that I ranked 20th among the Best-Performing CEOs in the World by Harvard Business Review. It's my great honor to take that title but if it had not been your support, I wouldn't have made it. I'd like to thank you all. Personally, I think they chose me based on the potential of Amorepacific, rather than the current size. Amorepacific will change and grow together with you. Great people make a great company. Let's together continue on this journey of beauty. Thank you.