Hello, everyone. This is Tomita, Chiaki Tomita. Thank you very much for your attendance, besides your busy schedule. We have the ELIXIR suncare Strategy IR presentation session. Thank you so much for your interest. Before jumping to the presentation, I would like to talk about myself. I joined the company in 2016 and ANESSA suncare brand, so I was involved in that as a brand manager. I joined the company to cover this in ANESSA. In 2020, Shiseido Japan, and now moved to the headquarters. When the ANESSA was incorporated in the global brand, in 2022, ELIXIR was also under my control. Also the ELIXIR and new brands strategizing and rebranding was led, and also have been promoting the brand value and cross-brand. I am held responsible for Suncare Strategy.
I would like to talk about the ELIXIR first, and later ELIXIR's sustainability activity. Now, brand origin, name of the brand and ELIXIR. This brand was created in 1983 with the hope of becoming a miracle drop to users, which gives the power to step forward regardless of age. Its origin of the word is a French word, panacea. The hope of the brand, since its origin, stays the same: everyday miracle on your skin and be positive about aging are our brand mission. We continue to make efforts brand on this mission. Now I would like to introduce the products since the origin and would like to show you the brand movie showing our hope.
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Over 40 years of the history and approach of ELIXIR, who tirelessly researched collagen science, since the very beginning of the brand. We showed you in this video and covering all the products and introduced to you all. I hope you get a sense of our passion by watching this video. Now, I would like to talk about the business performance of the current ELIXIR. ELIXIR is now operating in eight countries and regions. In 2024, net sales surpassed JPY 50 billion globally. It was a + 8% year-over-year. In Japan, two years in a row, the growth rate was high teen level.
At the moment, roughly 80% of the net sales comes from Japan, but in China and Asia region, on top of Taiwan, when we entered into the market at the early stage, after 2022, we launched the business in Vietnam, Thailand, Singapore, and Malaysia, as well as Hong Kong. We now increase the footprint in overseas. In terms of the market share in Japan, 18 years in a row, we achieved number one in skincare market and also the skincare category. We achieved number one position, very solid position. Globally, last year, we were able to be awarded for over 110 cosmetic-related awards globally. It was very highly credited by customers. Back in 2022, we had a strategic shift. I would like to talk about that. ELIXIR changed its brand strategy in 2022 dramatically.
In September of 2022, when we made the announcement of the new strategy and covering new lotion and emulsion, I also attended to explain to you about the strategy. Some of you may have heard about the new strategy from me back in 2022. Specifically, our products were targeted over 45 years old, and the number of the SKUs, our new product launch was selective or limited, and we wanted to select into the hair products and try to invest our resources into such hair products. At that time, there was the mass market growth, and the middle price range was shrunk. Therefore, there were some concerns over such reduction of the SKUs and so forth. However, as a result, our market share grew significantly in 2024. The best ever result was achieved, and hair products also grew significantly.
Last year, the serum market was also achieved the minus one in the key markets. In 2022 to 2024, globally, we grew 15 points or so in the very high margin brands as well. Now, strategic direction, this is the ELIXIR's value proposition. We believe that beyond the price that we provide as a value for the ELIXIR, and collagen science is our foundation and offer high efficacy on the skin and very affordable price range is given in ELIXIR. Depends on the lineup and depends on the concerns over the skin. We give the comfort of everyday use and able to use long term. This is the aging care of daily use. Also, even for the self-service channels, we try to offer close to the every single customer and try to offer the best optimum touchpoint both offline and online. This is the lineup.
Since the onset of the brand, we were able to select, and also in 2022, new strategy was adopted. We tried to select the products, and the hair products was our key lineup: lotion, emulsion, and UV emulsions, and basic items, and also the cream. The reference price is JPY 11,000, and the serum is JPY 89,910. It is relatively expensive for the self-service market. However, customers acknowledge these products are beyond the value, beyond the price, so very highly appreciated. We wanted to be streamlining the lineup of the products and concentrate our marketing spend and also the investment to the hair products. As a result, we give the environment for customers that the self-service market is still able to select our products. That is another value proposition and also the high margin product range.
This is not limited to Japan only, but across overseas as well. In China, we launched the Vitalizing Cream, and better than the plan, we were able to achieve the net sales. According to our original intention, we were able to capture the customers who trade down from the prestige market. In the Asia-Pacific market, we are able to grow the Tone Up UV and the serum products. Those hair products are based on the collagen science with high skin efficacy, and based on such secret, over 40 years of our state-of-the-art research results are now generously embedded in our products. Based on such collagen science research, hair products continue to employ such new science. One of such initiatives is the ELIXIR AI Skin Analyzer, which is the skin condition diagnosis service.
This is our proprietary skin measurement device, and each and every customer will be able to get their own advices. Customers can understand their skin conditions and also its improvement by using our products. Also, through such AI skin analyzers users, we were able to see the increase of the purchase price for both existing and new customers. The ELIXIR Cloud, which is a membership service, and we now steadily grow the number of membership. We continue to have the CRM initiatives, and we see the increase of the sales coming from the members. Now, the net touchpoint. On top of the optimum touchpoint, we want to offer the brand purchasing opportunity, not just the traditional channels, but the e-commerce and overseas market, a self-service channel as well.
Since last year in e-commerce, we offer the e-commerce limited products as well as the regular delivery service for the lotion and the emulsion. Also, originally in China and Asia, we were focusing on the sales channels in the department store, but now we focus on the self-service channel as well. Finally, I want to talk about the sustainability initiative. ELIXIR is the aging care equals to the caring the future. We now offer the products manufactured at the environmentally conscious facilities and also offering the products with refillable packages. For refillable packages, we launched in 2012 already, and over 30 million units already sold. Through such use of the refillable packages, we were able to reduce the plastic as well as the CO2 emission by 85%. We continue to offer this kind of sustainability initiatives.
Finally, there is a video to show you the sustainability initiatives. As I explained, we want ELIXIR to be an anti-aging care brand from Japan representing Asia and continue to focus on this growth. I would like to have your attention going forward as well. Now, let me explain the strategy for the sun care category. After explaining our overall sun care strategy, I will introduce our strategy for ANESSA, our flagship sun care brand. The sun care market will be a growing market with a global value of approximately JPY 550 billion in 2023 and a growth rate in the low single digits through 2027. In addition, due to climate change such as global warming and the increase in skin cancer, the need for UV prevention is increasing every year.
Looking at the sun care category as a whole, there is a huge demand for what we call hybrid products, which include not only conventional sunscreens, but also skincare and makeup products with SPF. We call these products hybrid products, and demand is growing. Therefore, we call it the premium sun protection. There is a conventional sun care market, and the hybrid products are growing into even larger scale than the conventional sun care market. We take three main approaches to the sun care category. The first is to further strengthen Shiseido's technological advantage and maximize its value. The second is to strengthen ANESSA, our main sun care brand and Global Suncare. Global Suncare, which is in the prestige price range, has a global footprint and will measure its growth by accurately grasping the needs of each market.
On the other hand, ANESSA, which is in the premium price range, is expanding mainly in Japan, China, and Asia-Pacific region. The third, we will strengthen our hybrid products. We intend to introduce strong products that meet the needs of customers not only in the sunscreen brand, but also in the SPF product market of skincare and makeup brands. By doing so, we aim to firmly capture protection needs in the market where the boundaries between the categories are becoming more blurred. From here, I will explain how ANESSA, Asia's number one sunscreen brand, will further strengthen its foundation in Asia in the future. Let me begin with an overview of the brand.
ANESSA aims to realize its brand purpose of a free to shine, a world where everyone can continue to shine under the sun and has been protecting people's beauty and health for more than 30 years since the brand's inception. ANESSA is the number one brand in Asia with products available in 12 Asian countries and regions, including Japan and China. Its current sales are approximately JPY 50 billion. Despite the struggle in travel retail, it grew in local markets in Japan and overseas, and as a result, global sales grew as a whole. Asian regions are more global in nature, with Japan accounting for about 30% of total sales and the rest coming from overseas markets, 70%. Local market growth is not limited to 2024. ANESSA's sales in Japan, China, and our APAC transitions are shown here, and it is growing steadily.
We are continuing, so the profitability is also supporting our business substantially. From here, I would like to explain ANESSA's strategy. First of all, let me explain about ANESSA's product lineup. As we mentioned in our brand purpose, ANESSA cherishes the concept that everyone can continue to shine under the sun. We offer a lineup of products that respond to the needs of a variety of our customers. The Gold Series, ideal for leisure and sports activities, offers high UV protection as well as a gel type that is easy to use for daily UV care. We also offer a mild type that is easy to use for sensitive skin and children. In addition to this, last year, we launched a nighttime serum that provides both moisture care and wrinkle repair in a single bottle as a fully full body care solution after exposure to ultraviolet rays.
This year, we are also offering this Blush Type as a retailer-exclusive product, which is convenient for carrying around and reapplying during the day. The initial velocity of the product is very good, and it's starting very well, and the local Japanese have achieved through, and its product is very well supported by the users. Shiseido's 100 years of UV research supports ANESSA's extensive lineup and high efficiency. In 2014, we introduced a technology that increases UV protection effects even when exposed to water or sweat. In 2019, we introduced the world's first technology that increases UV protection effects with heat. The most recent product automatically repairs and even sun protection surfaces created by motion, and it is called the auto repair function. We believe that by incorporating cutting-edge technologies, we are able to deliver reliable results.
To further support our customers' activities under the sun, this year, we launched a WeChat-based CX app for our loyal customers in China. Our goal is not to end with the purchase of the product, but to build a lasting relationship with our customers by providing them with the proper use of sunscreen, optimum products, and the benefits of sunscreen on their skin. In terms of touch points, ANESSA has built a strong presence both offline, mainly in drugstore and other self-serve channels, and online in e-commerce in various countries. To this end, we will actively utilize influential celebrities and KOLs, sponsor events, and take other steps to increase the region's relevancy. We are working to enhance our brand equity to deliver a consistent global brand overview while at the same time conducting research and development. Finally, I would like to explain ANESSA's sustainability activities.
Our activities are largely focused on creation of social value and environment. First, let me tell you about the environmental initiatives. Based on our own research, we have adopted an ocean-friendly formula that is less likely to be washed out to sea in consideration of its impact on coral. Another point I will touch on is about the activities of creation of social value. These are the social contributions for people. As we announced last year, ANESSA has been strengthening its social activities in response to recent social issues of children in Asian countries not having enough time to play outside, which is affecting their healthy development of mind and body. ANESSA's Sunshine Project was started. Here, I would like to introduce the interview by Professor Akira Maehashi, Doctor of Medicine of Waseda University.
While this is moving in the direction of ensuring that children get about 60 minutes of exercise a day, the number of children who are unable to get the 60 minutes of exercise is increasing dramatically, screen time is increasing overwhelmingly. In China, there are so many lessons to attend. There is no time to play outside. Playing outside in the sun improves the functioning of the brain and autonomic nervous system and leads to the activation and improvement of brain function, as well as improving communication skills. Opening up and devising various kinds of play, it also leads to improvements in creativity and intellectual ability. I think that experience of interacting with others through outdoor play helps to support all five aspects of a well-balanced way.
Playing outside nurtures the five aspects of a child's growth and development, namely physical, emotional, social, intellectual, and spiritual, and in a well-balanced manner. This has a lifelong effect to live a happy life. Therefore, ANESSA and the Japan Football Association, as a social value partner, started activities to provide children with opportunities to experience physical and mental activity under the sun and to support the formation of the habit of playing outside. In addition, we started classroom lectures at elementary and junior high schools in 2018, and we're going to increase our activities. In addition, we started our activities in schools, and in 2021, we are sampling from kindergartens and daycare, and we started lectures for parents and soccer coaches. In addition, we have been supporting patients with xeroderma pigmentosum XP, an intractable ultraviolet sensitive disease that prevents exposure to sunlight for many years.
Finally, please take a look at the video of our activities conducted in Vietnam.
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This way, ANESSA hopes to continue to contribute to making society a better place for the future by embodying the objectives of the brand through both economic and social activities in the end. This concludes my presentation. Thank you very much for your attention. Now, we would like to move to Q&A.
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From Jefferies, Kawamoto-san, the floor is yours.
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Thank you.
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I hear you well.
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Thank you very much for sharing a very important topic today. My question is about the ELIXIR, so the profitability improvement.
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Compared to the past, what's the percentage of improvement for the margin of profitability?
What was the reason behind, like e-commerce compensation ratio, or whether it is the product mix or what was the unit price strategy, or what was the reason behind?
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See any kind of refill products in the overseas market a lot, so are there any impacts on the margin for the focus on the refillable package?
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Thank you for your questions.
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Actions and why it happened, so we are not able to provide in details, but dramatically, yes, we had the improvement in the margin and the building block for the improvement. It's a combination of multiple building blocks, and we believe that the product mix improvement. That is the first block. As I explained, originally, ELIXIR was focusing on the lotion emulsion and UV emulsion, very basic skincare products in the middle range products.
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After 2022, original wrinkle improvement cream.
Sorry, there is a thunderstorm, sorry, behind the scenes, sorry. The V Cream was launched in 2022. It is well received and a hot-selling product, and also the serum was launched. Originally, ELIXIR also has the category of the V Cream and the serum, but it was a middle range price range product, so it was not that high price range. Because of such two product launches, the product mix improved dramatically, contributing to the margin improvement. The second block is that self-serving channel expansion. That is another contribution. Specifically speaking, 80% of the sales of ELIXIR comes from Japan. In Japan, the drugstore is the key retail channel for us, but among the drugstores, there is no human intervention or beauty consultant intervention type of sales at the drugstore, which is our focus. As a result, the marketing spend through the people was now reduced.
That also contributed for the improvement of the margin. Finally, final question. Yes, indeed, this refillable packages is well received in Japan, but not in the overseas market. As you say, the profitability is high in the refillable package compared to the common type or the original bottles. We want to focus that going forward in the overseas market. Some overseas consumers worry that the quality may be deteriorated if they use the refillable bottles, but we explain financially and then try to promote these refillable bottles. Thank you very much for your question.
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Mizuho Securities.
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I'm going to switch the screen. Please wait a moment.
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About the overseas sales, the question, the camera doesn't switch on. I'm sorry. 80%- 20% is the overseas sales, and Japan 80%, overseas 20%.
What would be the focus countries or region outside of Japan? I would like you to tell me about the overseas strategy and also about the profits. Do you have a plan to increase overseas sales volume by ANESSA? Thank you for your wonderful question. Why is the overseas sales proportion so small with ANESSA? For the ELIXIR, this is a brand, a prestige brand that was rather late in selling overseas. We launched first in China in the second half of 2018. In comparison to other brands, the overseas launch was really late. With some transparency, there was the COVID crisis, and the treated water issue also happened. ELIXIR, it was the lotion that was the main product, and it was affected by a number of things for a long period of time.
That is why the sales did not grow so much. Also, the pricing in Asia, I think, has great potential in China and Asian countries. As I explained, the sales are increasing. How we will try to increase the ELIXIR sales is that in Asia, most of the sales were through the department stores. The new strategy since 2022 is that we have been shifting to other sales channels as much as possible through the open sale. The second point, what would be the products? The key product, and ELIXIR is an aging care brand. We would like to disseminate that thoroughly. The lotion was a strong product, but it is not so much used overseas, and the lotion does not connect to the aging care. The Vitalizing Cream was very well received, and this is 70% of the aging care.
That would be the key product for products in China. In China, there's the wrinkle cream, and that would be a good combination. Also, in Asia, there was a serum. There are different key products overseas. What about the visibility in overseas? It's still small in the present, and we have not yet been able to build the highly profitable business model. Profitability is increasing. For instance, in China, the profitability improved visibly. Also, the use of ANESSA is indeed very important. The open sale expansion will be centered around ANESSA. ANESSA is very well received overseas, and it has a very high product share. We're trying to combine ANESSA with the ELIXIR, so by using the ELIXIR as a high branding value, ANESSA is also expanding.
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There's a self channel and open sale.
Open sale is without the personnel, such as drug store. So let me explain. Yes, to drug store sale. Overseas drug store, the ELIXIR is in the rather highly priced brand or medium pricing level. It is a mixture of a medium and also high pricing level. Drug store, so drug store dealing with such pricing range or the medium pricing range. These are the main drug stores that we sell ELIXIR through.
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Miyazaki-san of Goldman Sachs.
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I would like to talk about the channel strategy, like a sales promotion in terms of the direction. ANESSA, ELIXIR, both.
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To expand the sales promotion, whether that is the right, in the middle of such timing, or if so, then which is the region that you focus in terms of the channel?
This year and next year, I just want to understand your positioning or direction. There was a certain question, like a skincare analyzer that you, that was covered in your presentation. Is this skin analyzer an optional service, or maybe that will be the very key driver for increasing your sales? What is the positioning of that? That is my question.
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Thank you for your question. Your question mainly is the country or region that we want to focus on? Yes. Also, like you earlier explained, the open sales type of approach, whether that is your key initiative. That is my question. Okay, I would like to explain by brand because of the different stages. ELIXIR, after 2022, we started to launch in this market. It has just begun.
The area that we focus in the overseas, all the markets that we started operations, everything is a focus. Especially the sales channel we focus on is the open sale. Originally, we were having the space in the department store. We still have that space. Beyond that, we want to focus on the open sale, the drug stores. The AI skin analyzer is well received by the markets. In overseas, open sale drug store sales, we can offer a better experience for the consumers. Those older retailers, we'd like to focus on that better consumer experience. AI skin analyzer is offered at the open sale, drug store. This is one of our key strategies. At the moment, it is online, basically. Thailand and Vietnam, we've already introduced AI skin analyzer this year, Singapore and Malaysia.
We would like, we will, launch this AI skin analyzer and start on an online basis. If that works, we would like to establish an environment at the store level. ANESSA, we've already established a high presence. Some countries that we have not launched, we would like to open some channels. One example is Mongolia, because we did not have any footprint, but we tried to, we already started business of ANESSA on a full-fledged manner this year. Areas that we have not reached in the past, we would like to open the market.
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Thank you so much.
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There's a question through chat.
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Pricing strategy?
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For two brands, what is your pricing plan for the two brands? That's the question.
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Thank you very much for your question. For ELIXIR, I'm already presented earlier.
We aimed at the middle of the medium pricing range in Japan, so about JPY 3,000. We will also have the JPY 8,000, JPY 9,000, JPY 10,000 level. It is a high pricing level. We have both price targets. The value beyond the pricing is something that we are working on at the moment. As far as ANESSA is concerned, up to now, in the sun care products, ANESSA was positioned as highly priced products. Among the sun care products, it is maintaining the high price range for sun care. I noticed in the middle, regarding pricing, maybe it is related to the price increase. Perhaps, but the price increase is planned. What is your position on the price increase? In terms of price increase, in terms of ELIXIR since 2022, the main category of the aging care has gone through major price increase. Every year, the values are increasing.
Bit by bit, the pricing is going up for ELIXIR and for ANESSA as well. Last year, the main products were renewed. At that time, price was increased. Going forward, we will monitor the market situation. We will focus on delivering even more values. We will work out the pricing in a cautious manner. Thank you very much. Koguchi, Sumitomo Mitsui Trust Asset Management, please. Okay. Koguchi, Sumitomo Mitsui Trust Asset Management, Koguchi speaking. ANESSA for China, Japan, and APAC, those are the markets that you are addressing. Across each region for sun care needs, how different are they? Can you describe that? Depends on the needs, local needs. At the end, you mentioned that the initiative for the social value creation initiative, that might differ, right? In Japan, you know, outdoor playing would be some of your focuses. In some regions, it's too strong sunlight.
It could be more skin cancer. Maybe one of the protections is more necessary. Can you describe some different needs by region? Thank you for your question. In each region, there is one common thing in Asia: customers' UV would affect the aging or promote some aging. Therefore, people have the knowledge to prevent any UV exposure to have an anti-aging. China and Japan, customers are very high-minded about the anti-aging. Gold Milk is ANESSA's highest efficacy on the protection from UV. Those customers in Japan and China are using on a daily basis for Gold Milk. On a daily use, those are the type of customers in China and Asia. In contrast, Japanese customers also use the sun care. As the UV are not so strong compared to China or Asia.
On a daily basis, Japanese customers prefer to have a more comfortable touch, like a gel format is more of their demand. A milk type, Gold Milk would be the ones that the Japanese customers select for leisure purposes. Another common insight,
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All the customers have the intention on the protection of the UV to have the anti-aging. That is another reason for applying that for the children. The screen time, more of a China or Southeast Asian customers have more awareness on the screen time. Because the children in those regions are very much addicted to use, like devices or smartphones, for the screen time. We want to offer some protection or the activities for ANESSA. APAC, do you include Australia? No, not yet. Australia, not yet. Understood. Thank you so much. Thank you for the question.
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Securities?
Securities, this is [audio distortion]. Nice to meet you. About both ELIXIR and ANESSA, what are the targets? The action plan until 2026 has been announced. What about the sales growth for both brands? What is your assumption? By 2026, the consolidated profit level would be about 77% the target. How are you going to drive that? Thank you for your question. Any other questions? Is there any disclosure of specific numbers by brand? We do not disclose the number by each brand, but ELIXIR is expected to have sales growth. Actually, ELIXIR has been growing more than 3% since before COVID-19. That is why, in Japan and Asia, we expect high growth. From the market situation, that is why we can attain a high market growth. ANESSA has a high international sales proportion. We are making some cautious overview of China. It will not grow as much as ELIXIR, but for ANESSA, we are considering robust sales and trying to become number one in Asia and try to fill the map, as I explained earlier.
In terms of profitability, both brands are contributing to our profit significantly. In ELIXIR, the COG percentage is lower and the cost ratio is very low with ELIXIR. That is why the profitability is very high and makes a high contribution to our overall profit. Selling ELIXIR in itself is a contribution to our profitability overall. On the other hand, ANESSA, the cost ratio is lower than the corporate-wide average, but it is not as good as ELIXIR, but then the marketing cost, because the sales, is so marketing cost is low. The profitability is very high among other brands. ANESSA certainly will grow in the sales volume so that profit will be gained. Thank you.
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higher or lower than 3%, which is the corporate-wide profitability. I would like to refrain from mentioning the brand-specific numbers, but it is at a good stage.
The same as ELIXIR, certainly is higher than the average, but
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ANESSA is no worse than the corporate average.
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About the profitability. The cost difference.
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Driving the difference in profitability, am I correct?
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The cost-wise, too, the two brands contribute to the business performance of the entire Shiseido. ELIXIR is a skincare brand, to make it easier to understand. Skincare has higher profitability than other products, such as the makeup products. More than half of the products of ELIXIR account for the lotion and the emulsion. ELIXIR has a great cost ratio as a brand.
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Thank you.
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ELIXIR, 2025-2026, all the consolidated sales growth rate is 3%. That is for entire Shiseido, and ELIXIR is expected to grow faster than that.
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I see the second round of questions from Miyazako-san of Mizuho.
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Thank you for taking my question second time. Now my screen is back.
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I just want to understand how you can maintain number one position. So ANESSA, so in China, local manufacturers are coming up. In China, I believe compared to the past, ANESSA's positioning is slightly weakening in my view. Is this statement correct? Because in age, Chinese manufacturers are going inwards to Southeast Asia as well. Do you see any impact or threat from the local manufacturers of sun care products?
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Can you clarify your question once again? Because I couldn't hear you well. Southeast Asia, I believe that there are so many China local manufacturers in sun care. ANESSA, can you win over the market against China local market? Thank you for your clarification.
In China, yes, indeed, China local players are emerging and very much spreading, but the value proposition of ANESSA is quite high. Every year we conduct brand image survey. ANESSA is maintaining the highest brand equity in China as well. Of course, we do not want to be complacent. There are some a little expensive local players or middle range as well as a little high-end. We need to be mindful about this competition. In Southeast Asia, local Chinese players are going inwards, but not yet establishing good positioning. That is our understanding. In Southeast Asia, there are their own local brands, and other companies are also having very good positioning in Southeast Asia. We also would like to offer ANESSA's original value proposition continuously in those markets. This is your Morgan Stanley MUFG Securities. Sato-san, please ask your question. Sato speaking.
Thank you.
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I ask a similar question to others. About the organization,
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I suppose your view is global, not just Japan, but Japan is a [audio distortion]. There's 1,600, and with ELIXIR 400 and ANESSA 150, Oku, and what is the rest? How is it?
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Control. Tomita-san is only in charge of the ANESSA ELIXIR, so for the next five, you are taking care of the most important part of the next five. How is it? How are the businesses controlled? Thank you for your question. The brand, other than ELIXIR and ANESSA in Japan, how are they controlled? We take a metrics approach. Globally, the brands with the global sales, there's a team in headquarters to create the strategy for those brands. ANESSA and ELIXIR belong to the global brands.
There's a Clé de Peau Beauté NARS team in the U.S., but the headquarters has a team for these global brands. In essence, I am in charge of ELIXIR and ANESSA for Japan.
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in Japan, as I said, ANESSA, ELIXIR, Shiseido, CBP, Clé de Peau Beauté, and other than these brands, there's a regional brand, and Japan itself is running the business.
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I see.
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For instance, the drug store, so ELIXIR and ANESSA main channel is a drug store in Japan. In Japan,
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what is the weight of the drug store for ANESSA and ELIXIR? That means that you have to negotiate with the drug store for both brands.
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in comparison to competitors, maybe you are faced with something negative if you split your resource into two brands.
We are making a brand value and a product, and we communicate.
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ANESSA and ELIXIR communication strategy. In Japan, there's ANESSA, ELIXIR, and other medium pricing products for drug store. There's a team to execute the businesses. There is a team in the marketing area and a team in the sales area. We do not have any situation that is not efficient. There is support by the brand and overall the teams are working together.
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Out of the JPY 555 billion, what is the proportion of the drug store sales? I cannot give you the exact number, but for ANESSA, there is a high proportion from the drug store. Same goes with ELIXIR. Thank you.
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Thank you very much. It's just right on time, so we would like to end today's session.
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Thank you very much for your attendance today.
This is my job visit session.