In recent years, there has been a growing demand for luxury goods among the wealthy class in Russia. Cosmetics are no exception. Consumers have become more discerning about products they buy, and an increasing number of consumers are willing to pay more for higher quality products. Among peer luxury products, Japanese products have become especially popular because of their high quality and reliability.
Mikimoto cosmetics offered by Mikimoto Pharmaceutical Co., Ltd., are attractive products, lavishly using pearl extract, and are highly appreciated by consumers in many countries.
In 2005, we concluded a distribution agreement in Russia with Mikimoto Pharmaceutical and started selling their products as their exclusive agent in Russia. Since then, we have been actively engaged in the sales promotion activities of Mikimoto cosmetics, such as running magazine advertisements and sales campaigns.
In January 2011, we concluded a sales agreement with a specialty store in Almaty, the largest city in Kazakhstan, and started selling Mikimoto cosmetics there as well. We are currently exploring opportunities to supply Mikimoto cosmetics to the former Soviet Union bloc countries.
The popularity of Japanese food in Russia will never end.
The number of Japanese restaurants is said to be more than 500 in the city of Moscow alone. If the number of cafes and bars that include sushi in their menus is included, that number is said to further increase. It is not too much to say that Japanese food has gone far beyond just a temporary boom and has now taken root in the gastronomic culture of Russian people.
Against this background, we are exporting primarily Japanese marine products and Japanese sakes. All of our marine products are selected high quality products, and our Japanese sakes are primarily high-grade boutique sake, with a focus on ginjo-shu（sake made from highly milled rice). They are primarily served at the finest Japanese restaurants in Russia.
Going forward, we will continue to aggressively promote the introduction and export of high quality products made in Japan to Russia.