Shiseido aims to expand the customer base for a long time with a business model development that improves personal experience value.

profile

Umezu Toshinobu (hereinafter referred to as Umezu): Hello everyone.Thank you for participating.My name is Toshinobu Umezu, Chief Strategy Officer at Shiseido.

First, let me introduce me.I joined Shiseido at the end of 2011.At that time, I was in charge of brand marketing, including the product development of multiple global brands, in the international marketing department of the international business.After that, when the current CEO Uozani participated in our company in 2014, I also moved to the Corporate Planning Department in 2014 and played the role of business strategy in Asia and China.2020 "and the current medium -term management plan" Win 2023 "are formulating and leading.

Now, as a chief strategy office, it is also described in the missions that plan and lead all the company reforms, which are called the Management Innovation Section, new brands and new business development, digital, and sustainability, and as well as slides.He is one of the new businesses born from the development of the new brand, and is the president of Ephectim Co., Ltd., which is also a joint venture with Yerman.Today, I would like to explain what Shiseido is particularly aiming for in DX.

Company Profile

Shiseido is a company founded in Ginza in 1872 (Meiji 5).In the era when Chinese medicine was the mainstream, we started our business as Japan's first Western -style dispensing pharmacy.Next year we will celebrate its 150th anniversary.The cosmetics business, which was the core business of the group, started in 1897, with 78 companies in group companies, about 47,000 in total, and 920.9 billion yen in 2020 consolidated sales.It is.

VISION 2020 Go ahead of the goal.On the other hand, serious effects of corona

In April 2014, the current president, Uta, was first appointed as an external president in Shiseido's history.At that time, various reforms and transformation began with the aim of becoming a "global beauty company that can win in the world".As I mentioned earlier in my self -introduction, I have been working together since 2014 and have been working on these reform for eight years.

Since 2015, we have been working on a six -year long -term strategy called "VISION 2020".The initial sales of 1 trillion yen, operating income of 100 billion yen, and 10 % of operating margins, which were initially raised as the 2020 achievement target in 2020, can be achieved forward in advance.I did it.Profit has increased more than sales growth, and management efficiency has been significantly improved.

On the other hand, the last year of VISION 2020, the last year of 2020, was a very difficult business environment due to the expansion of the new colon virus infection.

Future external environment

We recognize that the future external environment is still uncertain and extremely fraglasil.However, Shiseido is definitely preparing for the aftercona world.We recognize that the realization of sustainability, such as protecting the earth and enhancing social value in response to the corona evil this time is a corporate -owned parpus itself.We also expect the progress of the technology society and the awareness of health and non -illness.

Changes in the global beauty market

In such an environment, what is the global beauty market?As you may have experienced, last year, I had a long time at home in the Corona evil, and my health consciousness increased further.Therefore, it is assumed that the skin care market will grow in the aftercorona world in the future.

Makeup is considered that the polarization of brand -oriented and price -orientation will proceed further.And as part of DX, I think that personalization will develop further through beauty tech.

In such an environment, Shiseido's prestige premium regions are expected to recover from 5 % to 6 % in the medium to long term after the convergence of the corona.On the other hand, e -commerce is expected to grow at about 10 % and faster.

"Win 2023" main strategy

Based on the impact of such a corona, we announced the medium- to long -term management strategy "Win 2023 and Beyond" in February this year.This "Win 2023" has three important policies in Corona's evil.

The first is a conversion to a high -profit structure.We will promote transformations by reliably structural shifting, mainly in Europe and the United States, and reviewing the portfolio of the business.In addition, we would like to proceed with reforms such as production and logistics, and concentrate on cost reductions.

Through active investment, it is extremely important for the Shiseido Group to achieve growth in China and Asia, as well as to recover the Japanese business, which is the origin.

The second point is focusing on the skin beauty area.We will focus on our strengths, skin care brands, and to grow and grow.As mentioned earlier in the market forecast, it is expected that the expansion of skin care will develop in the market in the future.

The third point is the rebuilding of the growth base.As mentioned, we will focus on transformations and skin beauty, at the same time, the management policy that is the growth base, management based on sustainability, and conversion of business models that make full use of digital, is extremely important, and strategies.I think it is.The diversification and development of human resources and organizations to achieve this must be further enhanced.Through these, we will further strengthen our business base.

Build Back Better Thorough execution of strategy for complete resurrection-

This is a roadmap that represents the idea of each year until 2023.2021 is positioned as the year of change and the next growth for the next growth, and is promoting structural reform and financial base.The difficult judgments needed for the future are performed without postpone.

Next year's 2022 will be an important milestone year, the 150th anniversary of its founding.In this year, we are now preparing to return to recovery track.Instead of running out of short -term perspectives, these reforms have been promoted, but we have continuously invested in brands, research and development, production, digital, and human resources, and have made long -term growth.I think.

In 2023, the milestone, we are promoting a plan to return to the growth track in 2022 and fulfill the “complete revival” with further growth, and promote the highest operating profit margin of 15 %.

Global transformation formation

Global transformation floMap roadmap.As I mentioned earlier, we are promoting structural reforms and global transformation formations in 2021.I am the leader of this global transformation.

All items are promoted on trucks, such as reconstructing business portfolios and improving profitability mainly in Europe and the United States.We are preparing and preparing for the growth until 2023.

Global transformation formationの確実な進捗

ご存じのとおり、今年は具体的に3つの大きなトランスフォーメーションを発表しています。1つ目はパーソナルケア事業の譲渡・合弁事業化、2つ目は「Dolce&Gabbana」のグローバルライセンス契約解消、3つ目はコロナ禍で最もインパクトを受けている3つのメイクアップブランド「bareMinerals」「BUXOM」「Laura Mercier」の譲渡です。

Premium Skin Beauty Business

On the other hand, transformations are not only structural reform.We will talk about the premium skin beauty area that will take on the growth strategy after recovering from the influence of the new colon virus.What I realize as the strongest in Shiseido is knowledge about skin care and skin.

The business area that realizes beautiful and healthy skin, which is the strength of Shiseido, is called skin beauty.This is defined, including non -skin care categories.I would like to increase the sales composition ratio of the skin beauty business from 60 % in 2019 to 80 % in 2023.

In fiscal 2021, it has shown a very good progress for 80 %.The idea of Shiseido's "skin is not only grasped with skin, but connected to the body and mind" is an Oriental view of life that is familiar to Japanese companies, and is always competitive to strong European and American power.I believe it will be.

We are also working on new demand development that focuses on food and mental health and realizes skin beauty from inside the body.This month, the first inner beauty brand "INRYU" was released in China next spring.

In the future, I would like to develop and provide various solutions such as approaches other than skin care, including making the skin beautiful from the inside.Even in make -up, I would like to further strengthen products that have high skin care effects, especially foundations, etc. that make use of their own technology.

Innovation in the skin beauty area ①

A list of innovation in the skin beauty area.I will explain especially about the core brand "SHISEIDO".On the left side of the slide is the "Ultimune", a serum, a hero product of the core brand renewed this year.Innovative technology enhances skin immunity, approaches blood flow and power up from the inside.

The "SHISEIDO MEN" for men, which is described in the center of the slide, has been renewed.Based on the knowledge that elucidates the weaknesses that cause men's skin problems, we propose new technologies and approaches to protect the skin healthy.

On the right side of the slide is the "second skin" announced last month.This is also starting to sell.The technology called "second skin" has formed artificial skin on the skin, which consists of united irregularities, and enables instantaneous hiding wrinkles and sagging, which was not possible with cosmetics and cosmetic surgery.。As a background of technology, the patent technology was acquired in 2018 and R & D for three years, it was possible to provide a new experience of the second skin as the "second skin".

Innovation in the skin beauty area ②

I will explain other brands.The theme of the luxury brand "Cle de Peau Beaute" that combines the world's most advanced science and luxury, the first US skin care clean brand "Drunk ELEPHANT" acquired in 2019, and the "symbiosis with trees" laid up last year.The skin care brand "BAUM", and this brand will also be actively strengthened global developments other than Japan and the home country market.

"Drunk ELEPHANT" was launched a pop -up store for the first time in Isetan, Japan last month."DRUNK ELEPHANT" wants to accelerate not only in Europe and the United States but also in Asia.

Accelerate growth in Asia

Here are three brands that grow around Asia.We would like to improve our unique value by refining our unique value with our good skin care brands, such as "IPSA", "ELIXIR" and "ANESSA".

In addition, as we take the strategy of the “skin beauty area” with a strength of skin care, we would like to actively engage in portfolios, develop new brands, and create new portfolios.。

Shiseido Group aims through DX: Business Model Innovation

While reconstructing the growth infrastructure, we will talk about conversion to digital models and rebuilding the organization.Here is the main content of the presentation that I explain today.

In a nutshell, I would like to innovate business models in a word what the Shiseido Group aims through DX.

Ultimately, the aim is to expand the long -term loyal base by improving the experience value of each customer through DX.To that end, we have three initiatives to approach customers.

The first is digital marketing and e -commerce enhancement.The second is Omniex Perriance.This refers to a consumer experience that combines omni -channel and all kinds of touch points.The third is a personalized experience and service that suits individual customers.Through these three initiatives, we would like to provide not only selling products, but also the added value to each customer.

In order to achieve that, I want to face two major issues.The first is marketing and business management using data.The second is the realization of a highly productive way of working in promoting DX.

Currently, we are taking two actions that are the basis for realization.The first is the construction of a business operation that utilizes standardization data.Yokota of CFO of CFO is explained under the name "FOCUS" project in the IR financial results announcement.This is an initiative that standardizes and unifies business operations worldwide, and is an indispensable capability to realize DX.

The second is human resources, organizations, and climate.If you strengthen DX, you will need overwhelming digital human resources.Similarly, it is necessary to bring up new employees to be newly risked and become human resources who can play an active part in digital areas.I want to strengthen such organizational development.

DX is the center of management strategy

DX explains what is the center of management strategy.Inside the company, I, who is currently the chief strategic office, and Angelica Manson, who are shown in the photo in the center of the slide, are working together.She became the Chief Digital Officer this year.Indeed, I think that DX is the most important in management strategies.

"Digital Vision NO.1 Data DriveN Skin Beauty Company is described.We are currently promoting not only about the category of skin beauty company, but also through these initiatives how data can be used to make it more valuable for customers.

In the timeline of 2023, the main KPI is a 35 % E -commerce sales ratio.As announced in April this year, it has been concluded a strategic partnership with the iconic accelerator in the rebuilding of human resources and the establishment of the joint venture Shiseido Interactive Beauty (SIB).

​​As I mentioned earlier, the background of the launch of Shiseido Interactive Beauty is to expand the customer base significantly, provide services and value that suits each customer, and expand the long -term customer base.The aim is to go.

Japan Business: To business models that meet individual customers' needs and expectations

In such a global digital strategy, I will talk a little about the Japanese business.What we want to realize through DX in the Japanese business is a business model that meets individual customers' needs and expectations.There are three areas in it.

The first is a personalized experience and service.I would like to provide a firm experience for each customer.Two photos are posted on the top of the slide.The photo in the upper center of the slide is "Skin Pasha", which was announced this month and updated since 2017, which is an application that allows customers to diagnose skin on their own.

By improving the usability, each customer can store data, so that the skin data taken by yourself can be stored in the medium to long term, and it is possible to get your own skin calibration.

The photo on the right side of the slide is an online BC (beauty consultant), which is now actively strengthening.It has started from 25 online BCs that opened in the company.For three months, we provide specialized education in the SIB, provide online events, online counseling, and spontaneous distribution on SNS.Such a service is a measure that can provide more personalized response that matches the condition and worries of each customer.

The second is an omni -channel experience.Shiseido Japan is aiming for an omni -channel experience, not only in Shiseido's unique omni -channel, but also through collaboration with customers, actively launches omnichanels that firmly enhance the value of offline stores.As shown in the photo in the middle of the slide, as one of the collaborations with the customer, our BC is actively engaged in E -commerce in live streaming online.

The photo on the right side of the slide is "Beautyalive Circulation Check", which was introduced in the flagship store of the brand "SHISEIDO".It is a non -contact skin measurement tool.In line with this renewal, it is a state -of -the -art diagnostic system that not only diagnoses the skin, but also knows what the situation is through the blood flow of customers.

And we are strengthening digital marketing and e -commerce, including connecting to our business.I mentioned earlier KPI in 2023, "35 % sales ratio at global sales ratio".

In Japan, ROI verification in all marketing activities is being performed by accumulating measures to improve e -commerce sales ratio, conversion to digital media investment, and accumulate these data.Through them, we aim to improve marketing ROI.

China Business: Innovation of the organization base that supports growth

It is a Chinese business, the next main business.As you know, China is a market with a market with an e -commerce sales ratio of nearly 40 % from the late 30 % of the market itself.We recognize that Shiseido's share is more aggressive to gain share.

The number of e -commerce sales at the top of the slide is in FY2020, but has already exceeded the sales composition ratio.In order to grow further in this market, we are building a unique consumer platform that manages and utilizes customer data across online and offline.This allows you to accelerate the following points, data marketing.

Chinese customers have a wide variety of consumer journey under a variety of platforms.Therefore, we are creating a system that supports diversifying mega platformers, including not only the largest TMALL, but also the other Tencent Group's WeChat and the Tiktok Commerce.Through these, data is accumulated and our data marketing is enhanced.

As an example of using data, we will introduce a little about the store BC platform using WeChat.The photo on the right side of the slide is a BC application in our department store.

It is a platform application that shows the individuality of each BC, so customers can choose which BC to receive counseling and communicate individually.This time, we have created an omni -channel model that involves the customer, sharing it with a department store, which is an offline, and guiding it to the store.

In order to achieve these, Angelica Manson has been appointed as ChieF Digital Officer in global.In China, Tina Chan, a slide photo, has become CHINA CIEF Digital Officer.Tina Chan is currently leading a dedicated team called Digital Transformation Office in China, promoting the innovation of business and marketing models of each brand and DX, which is now explained.

Entering a new area that makes full use of technology

One of them, I would like to talk about "EffectIM", which is currently leading the business.The reason for talking about "Effectim" this time is to introduce the entry into new areas that make full use of technology.

One of the premium beauty strategies I mentioned earlier has a skin care category and a beauty device as an area that makes the skin beautiful.As the first installment, we have lone to a brand with a new routine, which is neither a beauty device nor a skin care serum by using a skin care and beauty equipment as a set by collaborating with Yarman.

This brand has three features.One is a high effect that realizes Shiseido's knowledge of dermatology.The realization of high aging care by beauty equipment and skin care synergies is only differentiated in the current market.

Furthermore, it is a 3D skin diagnosis created while collaborating with Shiseido's skin and a beauty tech company called Meitu.In addition to simply a skin diagnosis, you can tell what care should be done in the medium to long term using "EffectIM" while using "Effectim" and provide personalized beauty equipment.We also provide personalization that changes the waveform and output method of beauty equipment depending on the condition of customer skin problems.

In addition, we have created an OMO system that uses "technology x human" in order to create a relationship with customers in the medium to long term with "Effectim", which has these characteristics.

Especially in China, the base of the sales channel is e -commerce.In addition to e -commerce, we have an offline store, with 3D skin diagnosis, anti -aging coach skin diagnosis and future support support, etc., and build models of various brands.

These models are launched in March this year and have started experiments.In the twin 11 (double eleven) held this time, we have reached the top 8 in the beauty equipment category.I want to evolve further next year.

Sustainability action for 2030

From here on, we will proceed with the story of social activities.It is a management model that promotes sustainability, a management strategy of "Win2023", and it goes without saying that in order to sustain the corporate value, not only economic aspects such as sales and ordinary income, but also companies.It has become very important how to contribute to solving social issues throughout the business.

As a strategic territory, we have three areas.I believe that beauty will encourage people, create a world where the power of beauty is richer, and can realize joy and happiness.We set a strategic domain that contributes through business in the area of people, sosastics, and environment, and promote sustainability action.

Reduction of load on the global environment

I will explain the environmental area.As described in the slide, Shiseido has set a medium- to long -term goal, aiming to reduce the burden on the global environment, and in 2026, including achieving carbon neutrals.We are working across brands, regions, and entire company to realize KPI.

Promotion of environmental support packages

We are working on the development of Kaneka and biodegradable cosmetics vessels as "promotion of environmental packages".The lip color palette jointly developed was released from "SHISEIDO" last November.I would like to contribute to the environment through the package of the cosmetics business, which is my main business.

Another case is "Elixir".In July, the “Global Sustainability Campaign”, which aims to reduce plastic garbage, is being developed in accordance with the entire company strategy.By 2025, we are promoting all the main products of "Elixir" and responding to all the main products.

Correspondence in Corona evil

As "Corona's Division", we have produced disinfectants in Japan, American, and Europe and provided them to medical institutions.In Japan, the Ministry of Economy, Trade and Industry requested cooperation in the production of disinfectants, and utilized our knowledge to develop and produce skin -friendly disinfectants.We are promoting our own prescriptions widely to other companies and contributing to society together.

This year, the Company was evaluated for the construction of contact with customers after the provision of products and services in the Corona disaster, and was selected as the "DX brand 2021/Corona compatible department" jointly conducted by the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange.I have a track record.

Empowerment by the power of beauty

美の力におけるエンパワーメントについてご説明します。当社は2017年から、がんサバイバーを支援するプロジェクト「LAVENDER RING」という活動に参画しています。具体的にはヘアメイクやポートレイト撮影を通じた「LAVENDER RING MAKEUP & PHOTOS WITH SMILES」という活動で、「メセナアワード 2021」において優秀賞を受賞することができました。

To the leading company of diversity

Diversity is also positioned as an important pillar.We believe that people with diverse backgrounds, such as men and women, nationality, age, and disabilities, respect each other's opinions, actively share their opinions, and bring innovation, bringing business growth.

これらのダイバーシティ&インクルージョンの活動は、社会領域の中でも主要なアクション領域と定めています。女性比率は、取締役が42パーセント、本社役員では32パーセント、国内管理職で35パーセントまで高めてきました。「女性が輝く先進企業2020」では、内閣総理大臣表彰をいただいています。

In the future, we are actively promoting our activities to realize a company with 50 % and equal careers in all stages.

Promotion of diversity

The photos on the slides are the executive officers of 19 headquarters officers who are leading the challenge in the future.As you can see, it is a global, executable management system and diversity that brings diversity.I would like to continue to promote the success of employees with various backgrounds and create innovation.

Personal Beauty Wellness Company

We have a business vision for 2030.Shiseido will strengthen the foundation while focusing on the skin beauty area, and in 2030, aims to become an entrepreneur called "Personal Beauty Wellness Company".

I would like to evolve into such a business area that realizes each and every healthy beauty.As a result, it is a vision to provide support through business that emotions people and gives a sense of satisfaction and happiness throughout their lives.

In order to achieve these, the inner beauty area will be strengthened in the skin beauty area.I would like to evolve into a new entrepreneur that can use digital power to make personalized diagnosis, including digital power, to use digital power.

Build a "healthy beauty platform" to a partner throughout your life

We accumulate data in the skin and body as a vision to see what can be value to new consumers.

Currently, we have only been diagnosed with skin, but I would like to expand this frame, develop technologies that visualize the skin and body health, and expand the definition of beauty.

Currently, we provide solutions with cosmetics centered on skin care, but we will develop businesses that can provide a wide range of solutions, including beauty equipment, including inner beauty.

Through such a model, we aim to change to a business model that builds a stronger engagement with each customer and enhances the life time value of each person.

Now, please take a look at these visions for these "Personal Beauty Wellness Company".

(Video flows)

To the global beauty company from Japan that can win in the world

We will continue to aim for a global beauty company that has its own value from Japan.I think that Corona's evil will come to the end, and the world, consumers, and the competition we compete will change dramatically.

My role in that was that when I looked at Shiseido from 10 years ago, I took advantage of the current strengths of Shiseido, thinking about what to do, and contributed to management.I think.That's it for me.Thank you very much.

Q & A: About Chinese strategy

Moderator: "In your company, I think sales in China are great. In recent years, I think that risks and political risks have become apparent in China. Please tell me the Chinese strategy based on them.Is a question.

Umezu: As for our Chinese strategy, as you mentioned, it is considered that various changes in China are being advanced at a rapid pace.

However, as we believe in such a variety of measures, "there is no market in this beauty market that makes the middle layer even more richer than in China and creating a large market.I am thinking at the moment.

As we mentioned earlier in our strategy, in the area of skin beauty, the brand, portfolio, which has not yet been put into the Chinese market, expands its portfolio to the needs of Chinese customers.The first is that we want to develop a brand strategy that responds firmly.

The second is DX.As I mentioned earlier, the Chinese market has a variety of customers and has various sales methods.I think that we will keep up with these diversification, create and promote a digital strategy that allows Shiseido's unique way of fighting.

Finally, Shiseido has been strengthening its value development function while positioning as "China is the second headquarters."I would like to firmly strengthen value development from China, which captures not only globally enhanced brands but also Chinese customers' needs.

As I mentioned earlier, as I mentioned earlier, it is the construction of a strategic investment scheme with the inner beauty brand "INRYU", which will be launched next spring, and the other day, Bouyu.

We are working with companies that have the value and carpbility unique to China, and we regard new capability is our Chinese strategy.

Q & A: About added value by DX

Moderator: We had a question about DX."Please tell me the image that DX will lead to added value and the magnitude of the impact as much as possible."

Umezu: I am still reflecting on the word "DX" is a magic word and it is difficult to convey.We believe that "what is added value in DX?"

As I mentioned earlier, in marketing, we will provide the correct information based on the purchase history of that person and the information of what kind of action you see and what action you take.So one can solve the inconvenience of customers.And there is also an aspect that it can be delivered more efficiently.

Another thing is that customers can realize the value they are not aware of.Once you know personalized information, you can provide an experience that makes you realize what you really want.

Customers, including visualization of skin condition that customers do not understand through "skin pasha", and counseling for each person through online BCs, "what kind of products are needed"I think it is a great added value that fulfills "whether you want to become skin like".

Speaking of the scale, I certainly don't think of it, "If I proceed with DX, will sales increase soon?"However, in fact, if this DX does not have a firm capability, it will be considerably difficult to compete in the future.

For example, Shiseido's strength is an overwhelming customer base in Japan.If you can digitize these firmly and use the customer base in a way that is suitable for customers, the engagement between customers and Shiseido will increase.

And as Shiseido understands the customer more, it is possible to contribute to growth by being able to provide not only one skin care but also various solutions in the portfolio called skin beauty. thinking about.

Q & A: About future shareholder benefits

Moderator: This is a question about shareholder benefits."Please tell us about the expansion and ideas of future shareholder benefits."

Umezu: We are grateful for the daily support of shareholders, and we have a shareholder preferential treatment system to make our business more familiar with the content of our business activities.This is a selection of special treatment systems to choose from some options.

Until 2018, we were targeting shareholders who have more than 1,000 shares and have more than 1 year, but since 2019, more than 100 shares and over 1 year based on opinions and requests from individual shareholders.In addition to the shareholders owned by.

Since 2021, we have added options for donations based on the growing interest of individual shareholders in social activities.In the future, we will continue to create a better system, referring to the opinions of various investors and shareholders.

Q & A: About measures against slumps in airport duty -free shops, etc.

Moderator: "It is thought that people will continue to be restricted in the next few years. For example, sales of airport exemption stores, which were the bases of cosmetics sales, will be sluggish. How about countermeasures?"I have a question.

Umezu: The answer to the question is when people around the world can move across the border, but I will tell you two points.

The first point is Asia's biggest market in Shiseido's travel retail business.Among them, China is currently growing the most.As you know, Hainan Island is expanding as a new duty -free spot, based on the Chinese government's policies and revitalizing domestic consumption.

I think that even if people in other regions in the world do not move, we are able to develop business firmly to Chinese customers.Chinese customers are now firmly strengthening cross -border marketing, believing that the regulations will be canceled, and that they will return to Japan and Asia.

Cross border marketing is developing Chinese consumers, assembling one marketing model, with Chinese, Japanese inbound, travel Asia, and each touch point.

While using similar data obtained there, we would like to actively increase marketing investment and return the motor of growth in the future.

Q & A: About the inbound demand of aftercorona

Moderator: The next question is, "Is the recovery of inbound demand in the Japanese market in aftercorona?"

Umezu: I think this question is also a question that came out at the IR briefing session the other day.We do not assume that the inbound after the end of the new Coronavirus will return to the 2019 level for 2023.

Based on the recent situations, we are promoting our business every day, assuming that the regulation will be canceled early and will be spring or summer next year.

In Japan, we are strengthening marketing and engagement with local Japanese customers, one of the business strategies.The inbound is promoting the rebuilding of the Japanese business under the concept of bonuses.

Q & A: About DX issues in Japan

Moderator: I have a question about DX."Even if you say DX, I think that the response varies depending on each market. What are the tasks and barriers you need to overcome in Japan, especially in Japan?However, please tell me how to overcome the issues in the future. "

Umezu: In the world, the E -commerce sales are accelerating in Asia Pacific at a stretch due to this corona, and DX is accelerating.Japan has a lower sales compared to those countries, but given that the e -commerce sales structure is increasing until it exceeds 10 %, Japanese customers are also digital due to corona.I think that it is starting to experience the value that it has brought about.

One of the major issues is that Japan is convenient, such as offline stores wherever you go, and the purchase behavior of selecting products while receiving counseling with BC as an offline experience is firmly rooted.

I think it is difficult to change all of these to zero.I think the best challenge is how to add the value of purchasing behavior to Japanese customers with such purchasing behavior.Therefore, the Japanese business is currently actively promoting OMOs to provide OMO experiences through the collaboration of customers and further strengthen offline sales floors.

Perhaps we know that it would be difficult for Japan to change significantly unless the manufacturers and customers did not take the challenge to make the consumer a good idea to the consumer, and various measures were actively set up.I am working on.

Q & A: About initiatives in an aging society

Moderator: The question is, "How are you working on the aging society and work on the market for the elderly?"

Umezu: We recognize that this is a challenge that will become apparent at once since 2025, including not only Japan, but also China, Asian South Korea, and Taiwan.On the other hand, from our skin beauty strategy, I think this is a tremendous opportunity.Shiseido has a solid brand in Asia, which is aging, and has won enormous security, security and trust.

Using these, we are building a variety of solutions not only in skin care but also to make the skin beautiful in the skin beauty strategy for a long time to build a long -term and long -term engagement.I want to come.

In addition, there is a DX for this aging society.Now, even though it is aging, people in their 50s, 60s and 70s are also using e -commerce.In this Japan, instead of seeing it as a mere elderly, we have a digital approach that is different from the younger generation in the viewpoint of how to provide the value that meets their needs.While using it, I would like to promote DX that can build a relationship firmly.

Q & A: About medium- to long -term strategies for each region of the world

Moderator: The question is, "What kind of competition will you fight and how do you fight for the medium- and long -term strategy that become the world's number one company in the skin beauty area?"

Umezu: Regarding this, "Win 2023" first promotes the strategy around our strength, skin care, as the first priority.

From the viewpoint of competition for each region, it is based on the definition of skin beauty.Naturally, in the skin care category, there is also a western beauty beauty company that we usually compete.

However, in the definition of the skin beauty, for example, as soon as it becomes a beauty device or inner beauty, they are not competing, but maybe a completely different local company and injectable territory.We believe that startup companies may be competing.

What I want to tell you most about how you fight is that you will always return to Shiseido's strengths.As I mentioned in this presentation, Shiseido's strengths are overwhelmingly knowledge of the skin, and how the skin is sustained and healthy.Is to have.

How can these core compitians can embody the value of the skin beauty area and the areas of categories other than skin care, and in the embodiment, what Shiseido alone cannot do with Shiseido, like "EffectIM", Yarman and its industry's expert.I want to develop value and fight while working together.

Q & A: About the demand of men's line

Moderator: "The Men's line" Ultimune "also sells trial plans, but how about sales? How do you think the demand for men's lines will change in the future?"I have a question.

Umezu: Regarding this question, specific sales numbers are refrained this time.However, I think that the expected value for the men's line that Shiseido initially aimed at this brand was a good meeting.

Men's category is a greater segment in the Japanese and China Asian markets.As a Shiseido Group, we naturally consider this as an opportunity, and we want to prepare new value development well.

Umezu greeting

Umezu: Thank you very much for this time today.What I would like to tell you as a strategy is that Shiseido has been working hard every day to become a "global beauty company that can beat the world".

In addition to the last eight years, I would like to draw a management strategy and draw the future to keep Shiseido in a company that can continue to evolve based on strengths in the next 10 or 20 years.。

We look forward to your continued understanding of Shiseido's strategy and support for Shiseido Group.Thank you for today.