Management49.644.9In ConclusionFY Mar/2016FY Mar/2017FY Mar/2018FY Mar/2019FY Mar/2020FY Mar/2021FY Mar/2022(Note)Applying “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc., from FY Mar/2022.Sales for FY Mar/2016 to FY Mar/2021 are estimated values when the same standard is applied.CLAY GEL FACIAL WASHOverseas sales9.1%Wholesale sales16.9%Direct store sales27.1%Sales by Sales ChannelFY Mar/2022Online and catalogue sales46.9%17FANCL CosmeticsSales(¥ billion)60.0Medium-Term Strategies Based on the Importance of Addressing Customer and Future Needs40.020.00Introduction38.939.4both of which awaken the skin’s senses and stimulate the skin’s natural functions with the aim of enhancing the effectiveness of the skin care approaches regularly used by customers. Although still an effort in progress, we will develop this brand while thoroughly engaging with our customers.FANCL Cosmetics has identified the two “customer driven” and “future driven” slogans to emphasize the importance of addressing both needs. In order to remain a brand with an individuality that stands out as unique, we must deeply understand our customers and make propositions that only FANCL can provide. For this reason, we will employ the strengths of our D2C channels that allow us to communicate directly with our customers, including call centers, e-commerce, and directly managed stores. By more deeply understanding problems, needs, and insights through communication with our customers, we will enhance the customer-driven quality of our proposals.The second slogan, future driven, is based on the idea that what has value now in this age of dramatic change, or that had value in the past, will not necessarily hold value in the future. With BRANCHICFDR Acne CareBusiness Model51.644.142.7this in mind, we must not think in terms of merely extending the present, but adopt a thought process that focuses on and is driven by future needs.For example, more and more people are experiencing skin problems due to greater UV exposure and stress. Rough skin and other skin problems weaken the skin’s barrier function, which makes it easier for skin to become damaged and leads to accelerated aging problems. FANCL’s Mutenka cosmetics enhance the natural capabilities of skin and reconstitute its barrier function in order to foster healthy natural skin that is resistant to damage. We intend to exhibit an individuality unlike that of any other brand by proposing this value that is unique to FANCL as a combination of products and services through our D2C channels.By FY Mar/2031, we aim to replace all of the containers and packaging we use with sustainable options based on the 4Rs* principles as an environmental measure. As expressed by our founding philosophy of eliminating the “negatives” throughout the world with a sense of justice, FANCL possesses a corporate culture that tackles the global environmental challenges that have come under scrutiny today as a matter of course.This culture connects to our stance of earnestly facing our customers, builds trust, and has made us who we are today. We will continue to maintain this stance under which we will make propositions that truly satisfy our customers and that are not about short-term or superficial results.We do not believe that cosmetics simply pursue “beauty,” however. Instead, we feel they are “emotional consumables” that engage the sentiments of those who use them, for example by making customers feel positive and at ease. Skin is something that is always with our customers. And specifically because these are times in which many people face various uncertainties, we hold the strong desire to engage with the skin and provide support, in whatever way we can, so that our customers can spend each day with a smile, all while promoting business that is driven by the needs of our customers and the future.*4Rs: Reduce, Reuse, Recycle, RenewableSustainabilityData Section
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