❶ Create and promote products with unique valueIn FY Mar/2022, we were able to proceed as planned with renewals of our core products, such as MILD CLEANSING OIL, ENRICH+, and Naishi Support (Weight and body fat care). We were also able to launch new products, such as Sleep & Fatigue Care and SIGNS EFFECTOR, which are next-generation star product candidates. Launched in February 2020, the personal supplement Personal ONE has increased the number of customers and achieved results that exceeded expectations. Furthermore, in October 2021, FANCL launched BRANCHIC, its first prestige brand, in Japan.❷ Implement OMO that is unique to FANCLFANCL’s strength lies in its extensive network of both mail order and store channels. Having customers use both channels generates a lot of experience value and this leads to customers forming attachments to the Company. As an added bonus, this also helps ensure that our products become lasting favorites while Summary of the 3rd Medium-Term Management PlanStrengthen existing businesses / Accelerate growth of new businessesStrengthen the management foundationSDGsReinforce business by means of three pillars: FANCL Cosmetics, to promote brand diversification; ATTENIR, to evolve into a global brand; and boscia, to become a global brand in green beautyAiming for sustainable growth in Japan and overseas ManufacturingBased on the three pillars of “strengthening our existing supplement business,” “personalization,” and “BtoB business,” we will meet the new needs created by the declining birthrate and aging society as well as COVID-19 while aiming for a highly profitable business modelwhile adapting to social changes.IT systems OMOCosmetics BusinessIn the second half of FY Mar/2022, we focused on proactively marketing those products that had not been actively affected by COVID-19 in order to restore and expand our customer base. To continue to build on this momentum in FY Mar/2022, we will strategically invest in marketing costs, which we believe will lead to medium- to long-term growth.Research“Conquer Adversity and Shape Our Future”Nutritional Supplements BusinessLogisticsHuman resourcesOverseas Business / New Businessat the same time contributing to peripheral purchases. I am convinced that these efforts to maximize experience value for our customers represent the essence of Online Merges with Offline (OMO) that is unique to FANCL.Also, underpinning the IT system aspects of this OMO that is unique to FANCL is “FIT3,” which started full-scale operations in January 2022. This in-house-developed system is capable of centrally managing customer purchase information, customer opinions, and behavioral information up to the point of purchase in multiple sales channels. By utilizing this data, we will work toward the position where we will be able to gain a better understanding of our customers so that we can propose the most suitable products and services to an unprecedented level. The system will be very effective in future marketing activities and lead to a competitive advantage over other companies.In addition, the fact that a large number of in-house IT employees were nurtured in the process leading up to the completion of this “FIT3” system now represents a major asset for the Company. Employees who possess an expert knowledge of IT and who understand FANCL’s business are also playing a major role in our DX strategy. Rather than relying on the sourcing of employees from outside the Company, in the years to come we will continue to focus in particular on the training of in-house IT employees who will be able to play active roles.(Cosmetics)Expansion in Asia through brand diversification(Supplements)Strengthen efforts centered on cross-border e-commerce (EC) and aim to become No.1 international brand in China in terms of sales(New Business)Strengthen the development and fostering of new businesses that take the future as their starting pointReview of the Seven Challenges“FORWARD 2023”
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