FANCL Recycling Program: Used cosmetic containers are collected at stores and used to make flower pots.

Case Summary

Background and history of the launch of the "FANCL Recycling Program"

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Prior to the launch of the "FANCL Recycling Program," was your company already engaged in recycling initiatives?

Imado-shi

Actually, we've been exploring the idea of collecting and recycling used cosmetic containers within the company for over 20 years.

The initiative began when we received numerous requests from customers asking us to collect their used containers. Our products contain no preservatives or other additives, so many of them come in small containers to ensure they are used up while fresh. As a result, the period before the product is used up is short, and the containers are thrown away frequently. This led to many customers requesting container collection and recycling.

In response to those requests, we repeatedly considered within the company how we could collect and recycle used cosmetic containers, but in the end, we were always unable to overcome the challenges of cost and operation, and were unable to put it into practice.

However, in recent years, with environmental issues such as global warming as a backdrop, companies' social responsibility and their responsibility as producers as manufacturers have been strongly questioned. This led to a management decision to seriously address these issues, which ultimately resulted in the launch of this program.

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What challenges did you face when launching the program?

Imado-shi

There were two major challenges when we were conceptualizing this program. One was how to collect used cosmetic containers from our customers.

When recycling used cosmetic containers, we aimed to establish a scheme to collect the containers as valuable materials. However, there are few precedents for initiatives like this program in the industry, and we also lacked expertise in this area. Therefore, before starting this initiative, it was necessary to understand what legal considerations we needed to be aware of and what measures we needed to take.

Another challenge is whether the collected containers can be recycled into valuable products.

This was a very difficult challenge. First of all, we couldn't find a company that would process used cosmetic containers into recycled raw materials and use them to manufacture products. We did a lot of research internally, but the more we looked, the more we realized that there were no companies that could provide comprehensive support from collection to product manufacturing.

Processing materials into recycled raw materials and manufacturing products using those recycled materials are completely different phases, and the companies that handle each are different. Moreover, used cosmetic containers are, in a sense, unique items that have not been recycled until now. Also, since our containers are small, we figured that the amount we could collect would not be very large, and when it came to finding a company that would accept small-lot processing, there were hardly any options.

The reason we chose Pantech as our recycling partner

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Could you tell us how you first learned about Pantech and what made you choose them?

Imado-shi

Initially, our company had very little advanced expertise in plastic recycling. Therefore, in order to overcome the two challenges I mentioned earlier, we needed the cooperation of a recycling partner who could provide advice from a compliance perspective and offer comprehensive support from collection to product manufacturing.

It was during an exhibition focused on resource recycling that we first learned about Pantech , and we were very impressed because they perfectly matched the ideal recycling partner we had been looking for.

Before meeting Pantech , we had approached many companies about collaborating on this program regarding the recycling of raw materials and processing into products. However, they all declined, citing the fact that cosmetic containers are items for which there is no precedent for recycling and that the production volume is small. Therefore, it was very reassuring that Pantech was able to work alongside us, understanding our company's size.

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Did Pantech 's involvement help the program progress smoothly?

Imado-shi

I feel that things have progressed smoothly since I consulted with Pantech .

We received advice at every stage, from collection to processing, but above all, we are incredibly grateful that they repurposed our used cosmetic bottles into flowerpots.

Furthermore, after the program started, they also helped us when we expanded in-store collection to all of our directly managed stores nationwide. When expanding this program nationwide, we contacted more than 100 municipalities where our directly managed stores are located and explained our container collection program to gain their understanding. However, there were cases where different municipalities had different perceptions of the program, which made nationwide expansion difficult at times. At such times, we were able to receive advice from Pantech , and as a result, we were able to gain the understanding of all the municipalities.

If we hadn't met Pantech , the program itself might have fallen through, so we consider Pantech to be like a savior for our company!

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Please tell us about the ways in which Pantech has contributed to your company, and what you consider to be its unique strengths.

Imado-shi

As I mentioned earlier, they made a significant contribution to product development.

The final product, the flowerpot, is not currently for sale, but it has been so well-received that recipients and customers often ask, "Is it for sale?"

Furthermore, having Pantech 's support during the unprecedented recycling program was incredibly valuable.

We received a lot of advice at each stage, but I feel that we were only able to grow the program this much thanks to Pantech 's help.

What I find unique about them is that they provide a total production service for plastic recycling.

I feel that the plastic recycling industry is often highly specialized. There are very few companies that handle both raw material recycling and product manufacturing. Even if a company can process materials, the types of resins it can handle are limited, or it may lack knowledge of the relevant laws. Some companies are good at mass production but struggle with small-lot orders. Each company has its own strengths and weaknesses. However, for companies like ours that are outside the industry, understanding the strengths and weaknesses of recyclers and manufacturers and then entrusting them with processing is quite challenging.

For example, consulting with separate companies about "recycled raw materials" and "product development" would inevitably be inefficient, and finding a company willing to handle it in the first place would be a real challenge. Having one company provide support from start to finish was incredibly efficient.

Pantech possesses extensive expertise and a wide network in the field of plastic recycling, encompassing the entire recycling scheme from collection to product manufacturing, and they provide us with the support we need. There are very few companies that can produce the entire recycling scheme like Pantech does.

Reactions to the "FANCL Recycling Program"

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What kind of reactions have you received from customers and within the company since the launch of the "FANCL Recycling Program"?

Imado-shi

When we launched our recycling program, we received many comments from customers saying, "We've been waiting for this!" We also feel like our long-held wish has finally come true, as we've been able to respond to requests we've received for over 20 years.

Within the company, employees take pride in the fact that "Fancl is a pioneer in the industry with its recycling program," and employees with disabilities at Fancl Smile, a special subsidiary responsible for disassembling, washing, drying, and crushing bottles, have also expressed their delight at being able to participate in the program. I believe it has also had a positive effect on our internal branding.

Furthermore, staff at our directly managed stores actively explain the recycling program to customers and encourage their participation, and our online sales division plans and implements measures to guide customers to our physical stores and participate in the program. Our efforts are evolving beyond mere environmental activities.

Thanks to the efforts of our directly managed store staff and mail-order department, the number of customers participating in the program is steadily increasing, and as of the end of fiscal year 2023, approximately 45,000 customers are participating. Furthermore, the frequency of visits and average purchase amount of customers participating in container recycling have increased, contributing to the sales of our directly managed stores.

Furthermore, our goal is to encourage more customers to participate, so we will continue to explore ways to encourage customer participation in this program.

Future prospects

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Please tell us about your future plans for the "FANCL Recycling Program."

Imado-shi

We believe that individual environmental awareness is crucial for promoting the recycling of plastic resources, and we hope that this program can serve as an opportunity to change environmental awareness in society.

Furthermore, we want to make this program enjoyable for our customers, not just collect containers, so we plan to create attractive products other than flower pots. We believe this will encourage even more customers to participate in the program. We are also aiming for "horizontal recycling," where collected containers are recycled directly into new containers, and we hope to contribute to creating a society where plastics are recycled.

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Finally, what are your expectations for Pantech ?

Imado-shi

Regarding the final product, the flower pots, we've received many requests from people who want to buy them, but we feel we need to improve the quality a bit more before we can sell them as a product. We are well aware that it is difficult to manufacture products using recycled materials derived from used cosmetic containers, as there are not many precedents, but we would be happy if you could produce a variety of items other than flower pots that can be sold as products!

To achieve true resource recycling, we believe that continuous recycling is essential, and we hope that Pantech will be able to build a system that allows for the complete circularity of plastics both domestically and internationally!