Over the recent years, something unusual has happened across the world in an economic aspect. Even though the extent of it varies by country, it is not so usual to see countries experience a decrease in all three dimensions, including growth rates, interest rates and prices. In general, a decrease in interest rates leads to increased investment. Yet, countries tend to diverge in terms of growth, prices, and interest rates; not all countries end up with higher interest rates. Now, we are talking about a new reality; all three are moving in the same direction. Japan is a case in point. The government increased spending over the past 20 years as its economy transitions to low growth. It built bridges in rural areas and took a range of measures to deal with unemployment along with a number of welfare policies. However, its effort was almost in vain, and it left the country only with a huge national debt. The same is happening in Europe and all over the world. Many countries have lowered interest rates mostly for increased business loans to stimulate economic growth, but it has instead supported only the so-called zombie companies, resulting in more companies going insolvent. What's worse, population decline continues amid growing conflict of interest, and structural reforms have become more difficult than ever. It's the same story in Korea. This can also happen to the United States although things seem stable for the moment.

 What do we have to do in order to break from the prolonged economic slump in such a complex environment? There can only be one way out really: productivity improvement. Productivity is a variable and without it, we cannot solve this problem of economic depression. It is also linked to the inequation of survival, in which value should be greater than price, and price should be greater than cost. In other words, productivity improvement is profit-driven growth, and this is how we can serve two ends. Today, I'd like to tell you about how to increase productivity.

 First, productivity is closely related to brand appeal. Every brand should observe its customers, keep up to date with trends, glam itself up with special, original and unique stories and seek to inspire customers. Communicate more effectively with customers, create brand appeal and provide the value that's greater than the price of its products. Explore and develop appeal, whether big or small and deliver it effectively to customers.

 Second, do not underestimate and miss the unseen. That's our true target, particularly in the areas of R&D and design. Differentiated innovative products cannot be built in a day, and this process is not over even though a certain type of product may have come into the market. The unseen is more important than the seen. The advancement of R&D and design requires the continuous development of what's invisible, unseen creative potential and human capability. Innovation happens when such intangible assets are built up and managed in the most effective means possible. These intangible assets are at the core of competitiveness. Keep in mind that less is more and continue to strive for greater R&D and design capabilities. Revolutionize the way we think and the way we have worked based on renewed vigor and determination. Also, attempt what was once thought impossible. Things we can see will soon be gone, but things we cannot see will last forever. Together, we must explore ways to build up and make full use of invisible, intangible assets.

 Third, we must have our digital loop well-connected. It is something new that has come into being with the advent of the mobile era. It emphasizes the importance of making the right combination out of multiple options available in the digital environment to create a seamless loop. If you are thinking only about making good digital content, using only Instagram or working with celebrities, you are merely taking a linear approach, which is opposite to the concept of the digital loop. There are many options we must mix and match over the entire course of making content, targeting customers, selecting social media channels and landing to exert influence on commerce, which is why we must keep trying new combinations, measure and compare performances and move forward to make changes in an instant and agile manner for the goal of being better. Success does not come easy in this day and age, but small brands with a good understanding of a digital loop have managed to make a success of their business. Through an understanding and the use of a digital loop, we will be able to create the value and price greater than the cost of communication that we spend.

 Fourth, I'd like to discuss SCM (Supply Chain Management) and SCP (Supply Chain Planning). Both have great potential that can be unleashed through the Industrial 4.0. It is the perfect time to change the way we have worked, the way we have deemed as a golden rule. Observe all the new things that have been brought along with technological advancement, for example, digital driven planning, AI powered quality management and flexible production using robots. And break out of old ways of thinking. Again, it comes down to one thing: less is more. It is the way to make the value greater than the price, and the price greater than the cost.

 Fifth, office innovation is important. Through office innovation, we can accelerate the development and growth of talent. The use of cloud technology in HR management helps keep track of individuals, their strengths and weaknesses and identify the jobs they are best suited for. Our strength lies in the strengths of our individual members. With the competence of our members, we at Amorepacific can grow strong and healthy. The days of manual documentation as we know it are over. With the cloud as an enabler for office innovation, we must unlock the full potential of all individual members and purge all the unnecessary clutter from our organization.

 Last but not least, experience has become essential, particularly in the retail channel. Amazon keeps buying offline businesses. Alibaba is also expanding its offline range through business takeover and opening including Suning and the new Hema Xiansheng. Why do you think they do it? Digitally powered online shopping will replace a large part of offline shopping. We all crave convenience. It is human nature and once this convenience has been experienced, there's no turning back. If you have bought water, tissues, diapers or many other products with a few clicks, your shopping routine has most likely been changed ever since. Technology is changing the way we shop and pay for what we buy. It is also reshaping finance and banking. Cash gifts, for example, for weddings, funeral donations and almost all other forms of monetary gifts, are sent straight from mobile. This huge wave of digital transformation is sweeping the world. There is, however, one thing that will always remain the same: experience. Digital technology can never completely replace it. It is real and even though there are many advances being made in virtual reality, at the end of the day, humans are attracted to what's real, not a virtual replacement of the real thing. The real experience is still and will always be better. That experience is what we must provide to our customers. Our door-to-door business center, new Amore Seongsu and innisfree Jeju House are built to deliver such a real experience. However, we must take it further. Keep searching for something new, something different that we should provide through face-to-face interaction with customers in the door-to-door sales channel. ARITAUM should be able to offer more convenient, more personalized service to customers. Some customers like to try on things and find what they like while others want recommendations catering to their needs. innisfree and ETUDE HOUSE should also deliver a special, unique experience which in the long run will improve our productivity.

 We have only two months left in 2019. Starting today, let us work toward making 2020 another great year for ourselves and our customers. Be a doer, not a thinker. Start taking small actions and they will build into innovative products, customer experience and digital transformation ultimately leading to improvements in productivity. Respect each other when working together. Leaders must bring their killer instinct and a sense of responsibility while managers must unleash their originality and the spirit of challenging. Play to your full potential. Do not wait for others, but instead be the first to take actions. For that, I will create the workspace and an opportunity that you will need. If we want to see a big turnaround next year, we must act now. Tomorrow, it will be too late to do what we should have done today. Put the best and all of our efforts and we will able to see a good result. Success always brings about more success.

 In conclusion, I'd like to share a quote from Jose Saramago. "But it did not rise to the stars, for it belonged to the earth." If we do not lift our feet off the ground, we will never reach our stars. I want all of you to take a step forward, keep going and aim for the stars. Thank you.