Half of year 2022 has already passed as we face the beginning of a new business year. If we were to describe our concerted effort in the first half of this year in one word, we cannot leave out the word ‘change.’ To truly adapt to the 21st century, we all dedicated ourselves to solidifying brand asset, pursuing digital transformation, and innovating the fundamentals of our business. The revenue growth led by ecommerce was also an achievement made with our effort.

There are, however, still many challenges ahead. It is a stark reality that our conventional channels, especially, face challenges and limitations in meeting the expectations of customers in the new era. Is this simply because we were afraid of change and held on tightly to the glory of our past?

To light a fire on a piece of paper, one must concentrate light with a magnifying glass. Only when light is focused around one single point does it display its power. If we did not change as much as we expected in the recent past, let us look back on whether we failed to make concerted efforts and simply led individual lonely battles. We must once again reflect on what future we want to focus our capability on.

Our door-to-door sales channel is a proud channel that led the growth of the beauty industry in Korea. We focused on the essence of building beautiful ‘relationships’ with customers, beyond simply selling products, for a long time of 60 years. And as a result, we are where we are today by overcoming many challenges. This ‘essence’ does not change even if the times change. What changes is the ‘way’ we build and deepen our relationship with customers.

To this end, we have declared to open an era of ‘new commerce.’ New commerce is a new way of personal selling that builds on the relationship with our customers by actively utilizing digital technologies. By leveraging the power of digital and platforms that closely connect the world, we will further deepen connections between the company and special sales agencies as well as with counselors and customers. Counselors will have the opportunity to meet various customers and Amorepacific will, together with counselors, listen carefully to the voices of our customers to quickly deliver better products and services. This change with begin with door-to-door sales, but all retail stores must join in our effort toward innovation. We must communicate with customers by delivering our own unique products and services that customers cannot experience from any other brand by leveraging digital technology.

As much as the importance of innovating our channels, it is also critical that we develop brands and products that meet customer expectations. Under clear philosophy on beauty, our brands must deliver products with clear benefits beyond the level of expectation of customers.

Derma category is one of the fastest growing markets based on lifestyle environment and habit changes of customers. We have begun R&D in skincare solutions optimized to sensitive skin much ahead of our competitors starting from the end of the 1970s. By leveraging on our advanced technology and research, we must solidify our position in the Derma market centered around AESTURA, illiyoon, and CUSTOM.ME. It is also important to keep a close eye on Derma brands with growth potential in Korea and abroad to capture investment opportunities. Our other brands must also prepare to deliver differentiated products by reflecting the needs of function, benefits, and trends like naturalism or Clean under unique philosophy.

A new horizon is opening ahead in the new world that is closely connected through digital technology. As I mentioned several times before, the global wave of ‘Koreanness’ that is spreading across the world through global platforms is a golden opportunity.

This year, our US office aims to achieve KRW 100 billion in sales led by the performance of LANEIGE and Sulwhasoo. North America is a key market that we must grow. We must also expand our reach in APAC markets including Vietnam, Indonesia, and Thailand as well as advanced markets such as Japan, the UK, France, and Germany by keeping a close eye on new opportunities. If we continue to deliver products with irreplaceable appeal, we will soon be able to overcome our challenges in China as well. Let us deliver brands, products, and content that capture the hearts of customers worldwide to communicate continuously through global platforms and gather strong supporters and fans. And let us build our own global community with confidence and passion by capturing the opportunities the world presents to us.

It is easy to lose our way when we are alone in the rough changes in the world. However, we must remember that if we come together and make concerted efforts, we can achieve great successes. We may wander when we go at it alone, but we will strive when we go together. Our sales organization must become a true One Team to pursue digital transformation that will change the paradigm of the beauty industry. Our brands, R&D and SCM must listen closely to the voices of customers and markets to deliver our unique and differentiated brands and products. And let us build on our strengths at each of our customer contact points around the world to face challenges in the global market.

The future doesn’t just come. It lies where we are headed. If we come together by understanding each other, ‘Team AMORE’ will make great progress towards the future, riding the wave of the times. Dream Big! New Beauty!