'Dual circulation' to boost growth (VI)

A1: China has always been the most important overseas market for Amorepacific. It is also a strategic spot for the global development of the group. In 2020 we responded to the call of the Chinese government for economic recovery. At the same time, we actively adjusted our brands' digital marketing strategy and resource allocation, fully integrated the data operations, and diverted offline consumer demand to online channels. Our sales increased by 100 percent year-on-year on Singles Day last year.

A2: I think it's time for us to embrace a new mindset of "if it works in China, it will work in the world".

Products and marketing approaches tailored for Chinese customers will more likely become best practices that prevail and succeed in overseas markets. Shanghai is our regional headquarters. We have a full-fledged large team that operates separately from management, research and development, and production and marketing. From innovated in China to social marketed in China, our China team is always able to define an effective way to get closer to Chinese customers and make ourselves better translated into the changing environment of the local market.

A3: In view of the prominent problems foreign-funded enterprises currently face, the government has specifically proposed a series of targeted measures such as optimizing the foreign investment environment, innovating the methods of attracting foreign business and investment, and promoting the construction of open platforms. It has constantly relaxed market access, provided foreign-funded enterprises with targeted, operational solutions and created a market-oriented, legalized and international business environment.

These favorable policies make us more hopeful about the future of investing in China. And they make our determination to take root in Shanghai for development much stronger.

A6: For us, the Chinese market is a special trendsetter. Due to its unique expression of trends, diverse consumer groups and ways of thinking, booming innovative strength, and unique digital ecosystem, our business development and practice in China is forward-looking and referenced for global business.

Strengthening the competitiveness of "brand" and "digitization" are our two breakthrough points next year.

We will continue to support the development of high-end brands, especially Sulwhasoo and Laneige in the Chinese market. The year 2020 has witnessed the process of all our brands on the fast track of digitization. And it has contributed half of the overall business to our business growth under the drive of new platform development, digital stores and community operations. China's market is highly digitized and the digital ecosystem is perfect. In the future, digitization will still be the core track for the development of the beauty market. And it is also the key for us to keep ahead.