Sustainability49Expectations from and Challenges for Global StrategyI believe that expanding business overseas is indispensable for FANCL’s future growth. The important thing is to firmly recognize that what is considered common sense in Japan will not always be relevant overseas. Moreover, the flexibility to be humble and to flexibly change policies, strategies or tactics should a mistake be made is of paramount importance in a global strategy.Introductioncompared with companies of a similar size and scale.In the spring of 2022, FANCL’s unique FIT3 core system commenced operation, and the Company has reached the point of being able to estimate and analyze each problem from customer behavior. This will give rise to opportunities to bring about evolution in conventional styles of sales and marketing in a ground-breaking manner. In this way, as an outside director I have great expectations for the DX strategy that FANCL is currently pushing ahead.I also think that building up overseas employees is a pressing issue. At the same time as hiring human resources outside Japan as assets who contribute immediately to ascertain local information, FANCL must send overseas ever greater numbers of home-grown employees who possess a thorough understanding of our corporate philosophy and business. To have them experience life locally will be very important in developing professionals for overseas business. There is a large amount of inspiration and skill that can only be gained by coming into close contact with a country’s culture and customs. This is because it is from those experiences that the new ideas and developments for business will arise.ManagementBusiness ModelI also think that, eventually, overseas expansion will be best accelerated by adding non-Japanese directors and executive officers and forming a management tier that demonstrates diversity.The promotion of DX is also expected to improve work efficiency and give employees more time to think for themselves. I want employees to spend this time looking not only at other sections of the Company but also at other companies and at broader society. When they feel the changes in Japan and the world and think about what they can do as FANCL, the ideas for new products and new businesses should expand infinitely. As a result, in 10 to 20 years’ time, FANCL will not be limited to the current framework of cosmetics and health foods. I believe that FANCL can surely grow into a company that is said to create new value and remains essential for the next generation.In ConclusionFANCL’s Board of Directors is very well established and evaluates the effectiveness of its meetings. Moreover, to build a more advanced governance system that matches the business environment and that will lead to improvements in corporate value, it is essential that the environment be one in which harsh opinions from the standpoints of outside directors can be expressed frankly. To that end, I think it important to further deepen communications between those outside the Company and executive departments and build strong relationships of trust.Data SectionFANCL can surely grow into a company that is said to create new value and remains essential al for the next generation.
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