Risk of counterfeit goods that the company encountered for the first time
We commenced our full-scale anti-counterfeiting measures around 2018. It was triggered by the discovery of counterfeit goods of Japan’s first medical wrinkle improvement cosmetic “Wrinkle Shot” that we released the previous year. Based on our business model of internally handling research, production and distribution and directly delivering our products to customers, it was extremely rare for us to encounter the infringement of our brand by a third party in comparison to other companies, and we faced the risk of counterfeit goods for the first time with “Wrinkle Shot”.
Back then, “Wrinkle Shot” was also starting to gain popularity in China, and the “shopping spree” of buying up brand products also hit the news. I believe that these circumstances also played a part in the gradual actualization of our brand risk. With “B.A”, which is one of our brands, groundless information was spread on social media sites, and we started to come across some brand infringement cases. Since it was also a time that the company was attempting to expand its presence in overseas markets including China, counterfeit goods became an urgent issue, and also a major obstacle.