CEO COLUMN
Published | Jan-2019, [No.236] |
Subject | A Company which encourages its employees to achieve their goals and be happy |
I
wish for the health and well-being of the LCC employees and the happiness of
the new year. I am also grateful to all people in Korea and abroad who have led
the LCC as a firm-grounded company and help us realize our vision as an
exporting company by expending our products to the world. In
particular, I wish for the happiness of the new year of Mr. Hina, the president
of Pieras and his employees who have given us detailed feedback which was very
useful to improve the quality of our products. Thanks to them, we succeeded turning our product into luxury
gargle in Japan so that my employees are strongly proud of their effort and the
products they make. In
2018, there were many factors that the uncertainty of the global economy grew
bigger. The trade war between United States and china was one of them. It also
had a significant effect on Korean economy. I was afraid that Korean economy
system would be in danger. The major leading industries in Korea, shipbuilding,
automobile, construction and steel industry fell sharply. These phenomena
contributed to the collapse of Korean economic fundamentals. The newly implemented policies such as
minimum wage increase, a 52 hour workweek, and other regulations applied to
companies create more hostile situation which gives a hard time to
self-ownership. Domestic investment by
foreign companies is decreasing so domestic companies try to relocate their
factory abroad. Therefore, the number of job vacancy is getting lower and
lower, which worsen unemployment in Korea. Eventually, a vicious cycle in which
investment and consumption decline would be rooted in the Korean economy
system. For
the last year, we, LCC , tried our best in those belligerent conditions so I
believed we have accomplished many achievements such as increasing sales and
improving profitability. Last
year, one of our top-selling products, Lip Care was exported in large
quantities and Propolinse gargle products were diversified and succeeded to
enter global market like United States and Europe as well as domestic
market. Besides, we exploited automatic
Dispenser and expanded its sales field to United States last year. BDF¡¤UL sales department was moved to Seoul
to contribute ourselves more to satisfying our customers. Our overseas
outsourcing of L/C subsidiary materials is also proceeding successfully and we
have become able to preemptively respond to export volume by expanding three
factories. Inside
of our company, LCC, we are actively promoting Clean Day event aiming at the
state of the art hygiene and we are getting closer and closer to the goal. We
have developed ERP¡¤MES management system and turned our factories into smart
factories. We have upgraded quality management and productivity by strictly
following regulations. We also have taken advantages of our award system and
made many offers. Most of all, we adopted new welfare policies. We have
provided housing and tax deduction for our employees. We are keeping enhancing
the working environment with Refresh
Day and those improvements above. The biggest achievement is the fact that
more and more employees want to stay longer in LCC and they all have greater
sense of responsibility. Although
Domestic and overseas economic situation is getting difficult, I listed up six
new year resolutions to keep myself focused and realize the vision of the
firm-grounded company First,
we will make more effort to make
all of employees happy and by supporting their dreams. For the married employees, we provide
housing which is the major factor to settle down. For the employees who are
single, we provide comfortable and cozy dormitory. Like this, we, LCC, are
willing to be a part of our employees¡¯ life. We are designed for making various efforts
to set and spread a reading culture among the employees. All employees are
going to be provided with four complimentary books per year which are selected
and read by themselves. By
expanding and improving awards system, we are going to encourage the employees
to make more proposal and to practice more frequent 5S so that they can promote
their performance. Our employees will become more confident and proud of their
capacity. I completely believe that all those effort would lead to LCC with
good quality and strengthened price competitiveness in the global market. If the
company offers young employees supportive working conditions where they can
speak up, receive valuable feedback from their seniors and be rewarded for
their effort and sincerity, the young employees with high potential would
decide to be loyal to the company and never want to leave the company. To realize the vision for the firm-grounded and
long-lasting company, it is necessary to fertilize the young generation. They
are immature and amateurical for now but they will definitely be the huge asset
for the company. Second,
for active on and off line
Marketing of Propolinse products and sales growth, we are willing to accept
requests and offers from Pieras. On the purpose of the Health Club tasting
event, we are going to supply five hundreds complimentary Dispensers. For
enlarge sales of Dispenser Gargle to Casino and styling fields, we are willing
to supply additional five-hundreds to one thousand complimentary products in
case of be requested. Also, we are reviewing the request of complimentary
shashe as a sample. To export our products to China, United States and
Southeast Asia, we are promptly develop a variety of new products and
packaging. To succeed in the domestic market, we are well focused on Olive Young,
a national chain shop and home shopping project. We dispatch our practitioners
to the buyers in Japan and fix a quality issues every time it is raised even if
it is a minor error. By taking part in more exhibitions next year, we will
obtain essential feedback on our products and catch up the new trends. We are
planning to keep improving ourselves and spirits to become better. Third,
we are going to put a lot more
effort into targeting US market for gargles and cosmetics. With Automatic Dispense which is geared
towards Americans with Disabilities Act, we are planning to concentrate on the
areas in which a variety of fast food chains are densely located in United
States. With Gentry as the center, we are planning to dispatch our employees
more frequently to United States to obtain information and activities which
support sale and marketing. Also, we have come up with many plans to upgrade
quality and price competitiveness. To help Thera Breath, one of our cooperative
companies based in the United States, to expand its share in Asia markets
including Korea, we are going to add spurs to our OEM production, which will
support our plan to expand our export area all directions. Fourth,
To Expand the export volume of
Lip Care products, we are going to increase the production lines of the
products and establish additional facilities.
With the expansion of the Lip Care plant, which is currently being completed
with the goal of completion in upcoming March, it is going to becoming the
largest factory in Asia. We are able to be well-prepared for twenty million to
thirty million export potentials to the US and European markets. Based on
Know-how of manufacturing, filling and packaging accumulated over twenty years,
we are going to keep ourselves focused on productivity improvement and quality
improvement. Also we are planning to take a full advantages of our know-how in
pioneering niche markets such as coffee shops and bakeries in Korea by
developing a variety of new products including ultraviolet protection products. Fifth,
we are planning to expand
overseas outsourcing of subsidiary materials. If
Samsung and LG did not produce their smartphones overseas in Vietnam, they
would have been overwhelmed by Apple and could not become global leaders. If
our L/C production and supply also insisted on domestic procurement of
subsidiary materials, our exporting would not have been possible as a matter of
course, not to mention the price competitiveness. Therefore, we are going to
develop the Cap-Mechanic of the L/C on our current OMI company, actively
promote Dispenser Cover production, plating and overseas outsourcing of other
materials. As we have solved the quality issue of L/C with our persistent
efforts, we are able to cope with overseas production in China, which is
expanded and added, by sufficiently cooperating with a good retailers,
appropriate dispatch and quality management. Finally,
we plan to try developing a
variety of new products and renew packages with the aim of achieving sales of
five billion KRW in Daiso malls by 2020. In
spite of the downturn in the domestic economy, we assume that sales of low-cost
Daiso goods will increase further. With over ten years of our persistent
efforts, our ORIOX brand has become firmly established. Therefore, we need to
develop diverse sales strategies and tactics to increase sales of our products
at Daiso malls while maintaining the top selling position in the niche market
with our best sellers such as sauna goods, cosmetics and dispense gargle. Employees!
Thank you for your contribution and loyalty to LCC last year. In the
new year, we will try to build a wider area with the quality and price
competitiveness we have achieved in the global market and we will continue to
make efforts to establish ORIOX brand more firmly in Korea, which will leads us
to realize our final goals, long-lasting and firm-grounded LCC. CEO BAIK, SUNGCHUN |
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