On the morning of the 2022 New Year, I wish the health of LCC employees and the happiness of the family. Customers who lead us to continue to work hard to be a 100-year-old company under difficult conditions due to the spread of COVID-19. And I hope our overseas buyers, who make us to realize our dream to be an export company come true, will prosper in the new year.

In particular, I would like to express my deep gratitude to President Hina, the Pieras family, and US Unilever relevant people for helping me win the $20 million Export Trophy on Korea Trade Day(December 5th 2021).

In the new year, we are going to start a new project of Dispenser Mouthwash for achieve $30 million in exports.

The Japanese Propolinse mouthwash led us achieved a $10 million, won the $20 million trophy with Lip Care in the U.S.A, and will create an export myth for Fast Food stores in the U.S. with Dispenser Mouthwash.

More than 20 years ago, We developed the world's first dispenser for mouthwash and pioneered a niche market with it that can be used freely in public places along with paper cups. We are confident that we have contributed a lot to Oral Hygiene Health by pioneering the domestic market, focusing on department stores, Golf Course, Resort, and high-end restaurants.

However, the domestic market for consumers unfamiliar with the use of Mouthwash reveals limitations in scalability, and in the end, the challenge to the US market, which has become a 'daily use of mouthwash' is bound to be our new goal.

Ten years ago, I knocked on the U.S. market with a domestic dispenser, but I realized that it was impossible to enter the Franchise store, which is a mass consumer, without developing a new dispenser suitable for the new reef 'the American Disabled Act'.

We have invested more than 1 million dollars to develop 'Auto Dispenser' equipped with a battery that is easy to use and 'Slim Manual Dispenser' with good durability. The development was successful, but after installation at domestic and oversea, it was discovered and solved using large and small defects, and now it seems that the dispenser with almost no defect is completed.

Since Dispenser Mouthwash(D-Mouthwash) is a product for Niche Market, not a large store, our primary goal is to find a distributor that will expand its business line in a Door to Door method.

In order to welcome the distributor who will handle our products across the Pacific, we plan to introduce the product and LCC Company with reliable promotion video to instill primary faith.

Next, we will actively support TV advertising and marketing of Propolinse Mouthwash, which starts in March.

The promotion of products, which has been selling for more than a decade, through commercial broadcasting hiding CEO Pieras Hina's ambition to establish itself as a top brand by winning the competition with famous Japanese products as well as luxury products.

All the while Pieras have implemented various marketing strategies such as promoting products through participation in large-scale exhibitions in Japan, on-line marketing of YouTube, producing shelves exclusively for general marts and drug stores, and conducting tasting sessions of Dispenser and Sachet. But from now on, they will target the Japanese market through TV advertisement with high cost.

Propolinse Mouthwash, which has accumulated 40 million bottles export to japan, has expanded their line-up to more than 10 products, including Sakura, Green Tea, Premium, and Peach and so on. And it is expected that the increase in 150ml sales, which are gaining popularity among young people in Japanese convenience stores, will contribute a lot to the sale of 600ml main product.

The two companies, which have a strong partnership, with Pieras sales-LCC production, are promising to continue business for generations while WIN-WIN each other. In line with Japan's massive TV advertising and sales growth, LCC, which is responsible for the production and supply of Propolinse Mouthwash, established a new mouthwash factory(5th factory) to secure global quality and price competitiveness.

The automatic continuous process such as auto supply of bottle and cap, cleaning process, filling, capping and so on, leads most of production process into automation. Also it equipped the packing process through robot, so that the 5th factory equipped with excellent production facilities compared to factories of any large company around the world. It makes to possible to supply mass quantity product in right time.

High-speed automatic charging and packaging lines are operated exclusively for 600ml and 150ml without changing specification, fundamentally solving quality problems and improving productivity, enabling timely supply without holiday or night operation.

In addition, Diversifying Lip Balm's packages we will expand to global markets such as the United States and Europe.

It has already exported 25 million pieces per year and has entered major retailers such as Walmart, Amazon, Dollar Tree, and Dollar General, attracting love and attention from U.S. consumers. In order to expand Walmart's number of stores and enter convenience stores (CVS), a variety of non-blister package and labeling products will be prepared.

The size of the U.S. market (as of 2019) is 200 million pieces and $650 million, and products such as Chapstick, Burt's Bees, Carmex, and Blistex are the main brands, and our Vaseline lip balm also ranks fifth in market share.

With the expansion of the factory, the LipCare factory, which has a capacity of 70 million pieces (based on 8 hours/day) per year, has 6 mixers and 14 Portable Cushion Tanks. The mix, storage, and input are automatically supplied from the second floor to the first floor, enabling high productivity and multi-species production. Cap and Mechanic, subsidiary materials, are supplied on a pallet basis, and the produced charging products are also transferred to the Blister packaging room on a pallet basis.

The packaging room can also be packed in various ways, including eight Blister Packaging machines, Labeling Packaging machines, and Manual Packaging machines. The Blister card and boxes are supplied on a pallet basis, showing high productivity in logistics as well.

We will expand our own brand 'Oriox' sales at Daiso and No-Brand Market(E-Mart).

It was in 2008 that we developed our own brand and selected it as Daiso store, not a large store, after realizing that it was difficult to realize the 'one hundred year company' as a production supply of OEM and ODM.

Twenty years ago, We developed and entered sauna cosmetics and dispenser gargle with own brand, 'Oriox' and Niche Market's small successes were also possible through quality and price competitiveness. From Mouthwash, Lip Care, Body Lotion, Hand Wash and Sanitizer, which are proud to have global competitiveness, we have decided that competition in the domestic market is sufficiently likely to win.

More than 50 products have entered Daiso and No-Brand Market, and ORIOX sales are exceeding 5 million dollars, but we expect another expansion in sales with new products such as three Body Lotions, four Lip Care products, and hand lotion. Continuous improvement in the quality of the content and Package Renewal is cost-effective due to its quality and price competitiveness. I am confident that miracle in Daiso will be possible if we approach it from a long-term perspective for more than 10 years.

In order to expand exports of Propolinse Mouthwash, Dispenser Mouthwash, and Lip Balm and increase domestic sales of ORIOX, quality management based on the site must take root.

In addition, in order to compete with global brands in overseas markets, price competitiveness must be secured through system management to improve productivity, automate system. Furthermore, reducing the general management costs also necessary. Our vision of 'Realizing a 100-year-old company through export' also believes that it will be possible if efforts to ensure quality and price competitiveness continue and bear fruit.

CEO BAIK, SUNGCHUN