During ISO Audit, a word from consultant remained in my memory. "Small and medium-sized company's existence depends on whether it has their own brand or not." After more than 20 years of audit, it seems that companies survive which have their own brands for decades, but other companies which focus only OEM and ODM production close down their business due to market changes and discontinuation of orders. That's why company should build and grow it's own brand to survive and maintain business activity even if it isn't a long-lived company."

Yes, We have over 10 million dollars annual sales of our own brand ORIOX, and our sales are growing by over 20 percent each year. We operate distributors with focusing on sauna cosmetics and Dispenser Mouthwash. Also we meet our consumer directly through Off-line channel named Daiso and E-Mart 'No Brand'.

We manufacture and supply Global products on an OEM basis where we can learn advanced technologies and management know-how, and on the contrary, we develop and supply various products through ODM with our prescriptions and technologies.

We started as an OEM at the time of our founding, but with the accumulation of technology, we have expanded our scope to ODM development and have grown into a global company that exports 30-40% of our sales to 10 countries including Japan and the U.S.

We can categorize sales as Overseas sales of tangible and intangible products to foreign markets, General sales of finished products such as automobiles, home appliances, and food and drink, B2B Technical sales, and intangible Online services.

Our company operates a variety of distributor sales organizations, including overseas sales, B2B technical sales, and general sales that sell our products to many and unspecified people through distributors.

In the case of our own brand ORIOX, sauna cosmetics, Dispenser Mouthwash, and Hand Wash target to Niche markets and target a wide range of medium and low-priced products to consumers through Daiso and E-MART 'No Brand'. Even though our brand's recognition is low, sales activities must be actively promoted that the quality is equal and the price is relatively low.

If you look at it by each sales department, OEM sales from global company, We must first understand their management policies and the current state of sales worldwide. Also we ensure that our OEM product quality levels (contents, design, and sub-materials) are equal or higher. We need to adjust sales prices due to changes in prices and exchange rates of imported and secondary materials, check the issue of compensation for left-over materials due to discontinuation and package changes, and adjust the minimum wage to secure profitability. It is impossible to change the prescription, and most of the raw and secondary materials are limited to specific manufacturers and standards. If supply and demand are disrupted, it is impossible to produce and supply products, so we need to keep a close watch on their Order and inventory status.

We have to explain that ODM sales have equal quality competitiveness with large companies, and make various efforts to establish sales prices that ensure reasonable profitability based on price competitiveness. As much as possible, we should guide our customers to LCC Factory and introduce that LCC have largest production volume in Korea, automation status, quality control level, and LCC corporate culture. So that customer should feel the superiority of quality and price competitiveness.

Furthermore, It is necessary to explain of strength of export that LCC products which are export to Japan and US Market 20 million dollars annually (in 2021) and receives favorable review from overseas. So that it should lead to expand their products to other products.

Sauna cosmetics and Dispenser mouthwash, Hand Wash sales to distributor are general businesses of B2B, but most of the service items that buyers offer to consumers free of charge.

Therefore, the distributor must be able to secure a reasonable profit and must give the distributor the confidence that the business with LCC will be advantageous in the long run. Through regular visits and give the gift, which is consist of LCC export products, to distributor for ensure that LCC is export company which exports various products with quality and price competitiveness.

By sending LCC Magazine monthly, sending birthday wreaths, and conducting regular interviews, we must give the impression that we are a family and a community, and carefully monitor competitors' product trends to prevent their entry into the market. In addition, Through developing of new products and Package Renewal efforts for sustain 70-80% of Market share from Niche market are also required.

Daiso and E-Mart 'No-Brand' sales are general sales that feature large stores and niche markets based on the ORIOX brand. Therefore, we must continue to develop new products and package renewal products with our competitiveness, and we must benchmark competitors' products or large company's products to drive new ideas.

Daiso's miracle achieved through more than a decade of tireless effort has to be re-enacted in E-Mart"No-Brand" to prove that the LCC is the strongest player in the niche market.

We must take root in the long term of 10-20 years, while informing them that ORIOX is inferior only in brand power, that quality is comparable, inexpensive and cost-effective. We must respond positively to consumer claims and maintain Trust with MD due to changes in new product launches and packaging designs.

Overseas sales must do their best to develop overseas markets with the determination that the future of LCC lies in exports, and must have confidence that by 2021, the export target of $20 million will be achieved and a long-term target of $50 million will be possible.

In Japan market, Propolinse mouthwash is a brand-name mouthwash, and although it was successful in the drug store. But we should make another miracle in the convenience store market with a small capacity mouthwash.

We must respond promptly to complaints about the quality from picky Japanese consumers, and cooperate closely with each department of the factory to prevent a recurrence. We hope that our company's competitive product such as Lip Care and small-sized Hand Sanitizer, will be able to advance into convenience stores along with the 5 oz Propolinse mouthwash.

Dispenser mouthwash's sales is depressed due to Covid-19, but we must be prepared with confidence that the newly developed automatic Slim Dispenser will cause a big reaction in the US market in a few years.

Once vaccines are developed and the Covid-19 calms down, we need to be confident that "the day will come when our ORIOX dispenser mouthwash will be installed in all of Fast Food restaurants in the United States."

As a new export contribution item, Lip Care is expanding to more than 50 million units a year and expanding to Europe, Middle East and Southeast Asia from the U.S.

In order to win the competition against world-famous brands such as Chapstick, Burt's Bees, Carmex, and Nivea, the Vaseline L/C must be supported to grow into a global brand by diversifying packaging, expanding its items, and improving its prescription into natural.

Due to the character of B2B, LCC salesman should prioritize securing trust with client companies. Their main requirements, such as quality, delivery, price and so on, must be positively accepted and discuss with each department of the factory to resolve them. Salaries are received from the company, but it is basically paid by the client company, so they must also act as mediators in the middle of the "50:50" position.

It is necessary to understand regulations such as cosmetic law and quasi-drugs, understand the prescription and cost structure in detail, and actively respond to the various needs of client companies. The primary cause and countermeasures for quality claims must be explained on the phone on the day of the event. Encourage the Quality Assurance and Production department for get a prompt feedback. Also get the assurance from the relevant department to prevent a recurrence is needed.

We have to take our clients to LCC factory, introduce the quality management of LCC, and give the experience of price competitiveness advantage of automation and system management, and deliver LCC Magazine every month so that clients can feel LCC's unique corporate culture.

According to the distribution of business managers in Korea, the highest percentage of CEOs are from sales. Salespeople can gain a variety of sales experience at LCC through circulate position, and if they stick to their own development efforts, such as learning a foreign language for prepare in charge of oversea marketing, they will surely be guaranteed the "Best CEO in the future".

Cheer up LCC Sales man! I'm rooting for you!

CEO BAIK, SUNGCHUN