I would like to begin this message by expressing my deep appreciation to you for consistently providing us with your outstanding support.
In the 15th term (January 1, 2020 to December 31, 2020), the domestic cosmetics market experienced a large decline in inbound demand due to the spread of COVID-19 (the novel coronavirus). Consumer behavior has made a remarkable shift to EC channels, with changes in contactless behavior acting as a tailwind, while face-to-face services are declining. Although the future also remains uncertain for the overseas cosmetics market, consumption in the Chinese market has recovered to levels before the COVID-19 pandemic.
Under these changing market conditions, although the POLA ORBIS Group was unable to achieve the management indicators of its medium-term management plan for the four-year period from 2017 to 2020, the Group will restructure the channels of each brand, and accelerate its digital transformation with a sense of urgency, viewing these efforts as key challenges for the future. Moreover, in January 2021, we established a new sales company that controls the Group’s travel retail business. We expect this to become a driver of growth for our overseas businesses, together with the strong performance of POLA’s business in China.
This year, we launched our new medium-term management plan for the period from 2021 to 2023. Over this three-year period, we will aim to recover our net sales and operating income levels, and are positioning this period as a time for building a foundation for sustainable improvement of our corporate value.
We greatly appreciate our shareholders’ continuing support for the POLA ORBIS Group.