Strengthening technical guidance and quality control in China centered on the Dalian QC Center

「Specifically, we commenced efforts to build a robust production system by ensuring quality through the use of QC centers in Dalian, Qingdao and other locations to meet the trust of business partners and end consumers, and by visualizing and standardizing production processes through the digital transformation of supply-chain management.」

「In addition, we have newly established a Production Control Division as a cross-functional organization, will strengthen coordination with contract manufacturers and implement detailed production-progress management, and will work to raise quality levels.」

「In light of these circumstances, we established “Back Home” (a return to our roots) as the company-wide theme for the year and focused on strengthening our product-planning capabilities, securing appropriate profit margins for each product and customer, and stabilizing quality through collaboration with production partner factories, thereby working to regain our strengths.」

「Going forward, under the theme of “Back Home” (a return to our roots), we will work to strengthen our product-planning capabilities, secure appropriate profit margins for each product and customer, and stabilize quality through collaboration with production partner factories. At the same time, we will pursue the development of distinctive products using our original materials and through collaboration with external specialists, as well as examine new retail businesses, as medium- to long-term goals, and will make every effort to recover and raise our earning power in both the short and medium to long term.」

「Under the “Back Home” (back to basics) theme, we will continue to strengthen product planning capabilities, secure appropriate margins for each product and customer through collaboration with partner factories, and stabilize quality. We will also pursue, as medium- to long-term goals, the development of distinctive products using our original materials and through collaboration with external specialists, as well as the exploration of new retail businesses, while making every effort to recover and raise earnings capacity in the short term and over the medium to long term.」

「Going forward, under the theme of “Back Home” (a return to our roots), we will focus on recovering our earning power by developing trend-driven products, determining appropriate profitability for each product and customer, and stabilizing production processes and improving quality through collaboration with contract manufacturers.」

「Third, we will consolidate our contract manufacturers, primarily in China and ASEAN, and work with them to stabilize production processes and improve product quality by consistently outsourcing production in lots above a certain size.」

「Second, further stabilizing quality by sharing quality standards and technical issues with partner factories, primarily in China.」

「Together with our partner factories, primarily in China, we will share quality standards and issues to be addressed and further strengthen our efforts to achieve greater quality stability.」

「In addition, we are strengthening our efforts in technical guidance and quality control in China, our largest production outsourcing location, centered on the QC center in Dalian.」