| Vickie
It is human nature to love beauty, and people's anxiety and enthusiasm about "not aging" have created a Chinese medical beauty market worth about 227.4 billion yuan.
CVSource investment data shows that from January to May 2021, the funds invested in the medical beauty track have reached nearly 500 million yuan, more than double the year-on-year increase compared with 2020. It is predicted that the size of the medical aesthetic market will reach about 264.3 billion yuan in 2022. But this is not without crises.
On June 10, 2021, the eight ministries and commissions jointly issued the "Special Rectification Work Plan for Cracking Down on Illegal Medical Beauty Services", which issued a signal of focusing on the rectification of the medical beauty industry, and a basin of cold water poured out practitioners and capital thoroughly. Medical beauty companies sprint IPO blocked, medical beauty stocks all the way to the green light, small and medium-sized institutions have run away, medical beauty is still a good business? TOPHER interviewed the medical aesthetic industry in 2022 from four perspectives: product, consumer analysis, brand marketing and investment.
From the analysis of product development trends and high profitability categories, light medical beauty products with high repurchase rate are the focus of profitability, and if you want to make a profit for a long time, you must have your own technical barriers.
PART 1 Light medical beauty is still the general direction
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From 2014 to 2018, the proportion of China's light medical beauty market rose from 65% to 71%, although light medical beauty is not as "reborn" as plastic surgery, but the risk is also smaller, and compared to skin care products, the effect of light medical beauty can be seen by consumers faster, so users are easily fascinated by it.
Light medical beauty is a medical beauty project that can meet the demands of beauty seekers through non-invasive or minimally invasive, light medical beauty is more focused on products and services, can be copied in accordance with the standard, and does not need to rely on the doctor's technology and aesthetics.
However, because of its low unit price, it is easy to become the hardest hit area of fake parallel goods, if you want to occupy a place in this blue ocean, you need to establish a full range of moats from technology, products to brand marketing, from a certain explosive single product to occupy the minds of consumers, with more perfect and meticulous and humanized services to open up the offline scene
PART 2 Repurchase rate Repurchase rate
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Most medical aesthetic projects are not actually once and for all, and their "shelf life" is often shorter than love. Injectable slimming needles and hyaluronic acid will be naturally metabolized by the human body, while photoelectric thermage and photon rejuvenation can only delay aging for several years. However, the experience of rapidly becoming beautiful is too fascinating, and many consumers who have tried once have consumed again after the project has failed, maintaining their beauty, and over time they have become the "rich mine" of the medical aesthetic industry. Of course, if you want to grasp the repurchase rate of this golden egg hen, it is not enough to just stand still, suppliers also need to use technological progress to bring better results and a more comfortable user experience, thereby improving repurchase.
Part 3 is finer and longer-lasting
Users' demand for medical beauty is more refined, from the botulism of the whole face in the past to the subdivision products for neck wrinkles and eye wrinkles, such as Amek's Hi body neck stripes and Hi body panda needles. The second is durability and comfort, thermage from one generation to five generations, and then to Fotona4D, the effect of photoelectric projects has become better, the duration is longer, and the pain is lower.
PART 4 Technological barriers are a guarantee of profitability
Although the medical aesthetic industry is a "gold mine" in the market of 100 billion, not every link can make a lot of money.
Because upstream suppliers control the technology, the bargaining power brought about by the technical barriers created by high R&D investment gives them a rich return: the gross profit margin can reach 80-95%, and the net profit margin can reach 30%. Taking hyaluronic acid as an example, in 2018, the top four enterprises in the domestic medical beauty hyaluronic acid product market accounted for 70.30% of the market share.
The cost of training qualified medical aesthetic doctors in the middle range medical aesthetic hospital is relatively large, and because of the imperfect regulatory system, the unqualified black medical beauty makes the market competition more vicious. The gross profit margin of downstream institutions is generally 60-70%, and the net profit margin is also less than 15%.
Therefore, if you want to make a profit in the medical aesthetic industry, you need to master the means of production, invest more energy in technology research and development, launch more new products, and meet market demand, while the midstream hospital needs to spend more energy to choose or train doctors with higher levels to provide more professional services, while the downstream needs to standardize their own products in order to gain the trust of consumers.
PART 5 Consumers are getting younger
At the moment of "beauty is justice", more and more young people have entered the beauty salon. At the same time, young people who begin to practice aesthetics are getting younger and younger.
Many young people in their early twenties are already "old customers" with several years of experience, from "photon skin rejuvenation" to "slimming needles" to "eye synthesis", from skin care to micro-plastic surgery, which have slowly become routine projects.
In December 2021, Oxygen's "2021 Medical Aesthetic Industry White Paper" pointed out that in the three years from 2019 to 2021, people aged 25 and below have become the absolute main force of medical aesthetic consumption. At the same time, the "More Beautiful 2021 Medical Beauty Industry White Paper" released by the More Beautiful APP in January 2021 shows that the post-95 and post-00s as a whole occupy 54% of the medical aesthetic consumer market, and the proportion of post-00s has reached 19%.
As teenagers who are natives of the Internet, the post-00s have been exposed to a large amount of medical and aesthetic information very early, the concept is more open, and the economic situation of the only child is relatively good, and they can have more investment in medical aesthetics, and their parents are basically post-70s, they are not only in a better economic situation, but also more open in concept.
Therefore, in the future, being able to gain insight into the needs of young people and provide them with safe and personalized medical aesthetic services will be the development direction of the industry. Young people's overall education level is higher, the way to obtain information is more diverse, if you want to attract this part of the consumer, medical beauty institutions to make content marketing more youthful, professional.
PART 6 Medical aesthetic marketing is younger
The marketing of medical beauty institutions on social media has become a common topic, but in addition to public plastic surgery hospitals such as the Eight Major Departments and the Shanghai Nine Hospitals and large chain brands, small and medium-sized institutions have been too heavy in C-end sales thinking, and it has been difficult to get more consumer recognition.
How can formal institutions break the price war of black medical beauty on social media and win more consumers?
Doing good content may be one way to do it.
Replace the content of price wars and sales tendencies with professional science popularization and detailed descriptions of qualifications, products, doctors, etc. They should seize their differentiated advantages and focus their publicity on non-surgical medical aesthetic projects such as lasers, radiofrequency, injection filling, etc., because they are equally competent, and they are cheaper than top three hospitals and large institutions, and the time is more flexible.
In terms of marketing, it is necessary to be closer to the values of young people, and when launching KOLs, we should pay attention to "personalization" and "diversified beauty" as the main communication information, and we can cooperate with cross-border cooperation with categories such as games and entertainment where young people gather.
PART 7 offline supervision is more stringent
Although the purpose of medical aesthetics is beauty, its essence is medical services, in which the requirements and standards of technology and safety cannot be taken lightly.
In 2019, there were about 13,000 institutions with medical beauty qualifications in China, and among the legal medical beauty institutions, 15% of the institutions still operated in violation of the law. At the same time, it is estimated that there are still more than 80,000 life beauty stores in the country that illegally carry out medical beauty projects, which is illegal.
On June 10, 2021, eight ministries and commissions jointly issued the "Special Rectification Work Plan for Cracking Down on Illegal Medical Beauty Services", focusing on C-end institutions, urging medical beauty institutions to strictly purchase compliant and legal medical beauty products, and cracking down on parallel goods and fake goods.
In the "14th Five-Year Plan for the Construction of China's Medical Beauty Standard System", more than 50 industry standards are listed, and the content is standardized for practitioners from industry management standards, technical standards, education and training standards, and industry basic standards.
Under strict supervision, institutions should be more strict with themselves, need to implement strict procurement standards, strictly review the safety of raw materials and equipment qualifications, regularly train doctors, and set up a normalized inspection and assessment mechanism to align with the top three hospitals.
PART 8 Online marketing still needs to be compliant
The state's strict supervision is not only offline, but also online marketing advertising.
Searching for medical beauty-related keywords on social media, the overwhelming "planting grass post", the content is highly similar, and the same hospital is always recommended. In fact, these contents are written by medical aesthetic institutions through the marketing team, and in the mature industrial chain, a piece of content even needs only 5 yuan.
In response to these internet medical beauty marketing that is difficult to distinguish between true and false, the State Administration for Market Regulation issued the "Guidelines for the Enforcement of Medical Beauty Advertising", and carried out special rectification work to combat illegal medical beauty services nationwide from June to December 2021. The rectification work proposes to severely crack down on false medical beauty advertisements, information and acts of unfair competition.
There are also "medical beauty loan" merchants that have plunged countless families into water and fire, but they use low-interest or even interest-free loans as gimmicks to induce consumers to consume ahead of time, and many consumers have fallen into loan traps, ranging from becoming untrustworthy people to embarking on the road of breaking the law and committing crimes. In October, the General Office of the State Administration of Radio and Television issued a notice on stopping the broadcast of beauty loans and similar advertisements.
These strictly controlled policies are also giving preventive injections to practitioners in all links, the marketing means of fishing in muddy waters in the past will not work in the future, if you want long-term development is not eliminated, you need to seek truth from facts in marketing, you can not exaggerate the function of products and services in order to drain the flow, and you cannot rely on false low prices to attract consumers, and later increase prices or even induce consumer loans.
In the investment of medical beauty, we can see that there are opportunities hidden in the trough, suitable for high-level players with sufficient funds or strong experience and channels.
PART 9 Investors are cautious when entering the market
Is medical aesthetics still a suitable industry for investment and financial management?
If you are just an ordinary investor, there is no special advantage in production and sales, and it is better to be cautious at this stage.
Let's first look at the stocks, two weeks after the introduction of the medical beauty control policy last year, each medical beauty stock has fallen to varying degrees, Hao Haishengke fell 6.82%, Fosun Pharma A shares, Langzi shares, Aimike, fell more than 5%, Aibo Medical, International Medicine, Aoyuan Meigu fell more than 4%, East China Pharmaceutical, Aier Ophthalmology, Bloomage Biology fell more than 3%, once known as the medical beauty demon stock of blonde Rabi fell 2.01%. Goldman Sachs downgraded Fosun Pharma's A-share rating to neutral.
Looking at the profitability of the industry, such as Yimer, Ruili Medical Beauty, Yixing Medical Beauty, this kind of midstream link, there is no upstream scientific and technological barriers and need to bear huge marketing expenses, iResearch Consulting data shows that the head medical beauty service agency in the deduction of employee salaries, upstream consumables costs, customer acquisition costs and other expenses, the net profit margin is only 7%.
During the reporting period, the net profit margin of Yixing Plastic Surgery was only 3.2%, 6.8% and 11%. In the first half of 2021, Ruili Medical Beauty had a net loss of more than 5 million yuan. In the same period of 2020, Ruili Medical Beauty lost 12 million yuan directly.
These information are reminding investors that whether it is to buy medical beauty stocks or invest in the medical beauty industry, they need to be more cautious, do a good job in market research, and should flexibly expand downstream channels at the same time, the entry point of the product is positioned more accurately, in order to open the market, and to rationally invest to avoid losses.
PART 10 Hair transplant industry experience first
The precise positioning of medical aesthetic products requires insight into the needs of consumers, compared with the "icing on the cake" of beauty and skin care, the "charcoal in the snow" of hair transplantation seems to be easier for consumers to open their wallets.
In a report released by Guohai Securities in September 2021, it was mentioned that in recent years, 69.8% of people under the age of 30 have lost their hair, and the hair loss population has developed towards rejuvenation. The report predicts that as the pressure of work increases, the number of people with hair loss in the future will become larger and larger, and young people will pay more and more attention to "appearance", so the desire for a thick hair is far greater than before.
And this is undoubtedly a huge market. According to the Frost & Sullivan report, by 2030, the domestic hair transplantation market can reach 75.6 billion yuan, but hair transplantation has not only a vast market, but also considerable profits.
According to the prospectus of Yonghe Medical, the "first share of hair transplantation", its customer unit price in the first half of 2021 was 26,800 yuan, which means that the average customer spent more than 20,000 yuan. From 2018 to 2020, its gross profit margin was 75.1%, 72.6% and 74.6%, respectively.
As of December 2021, there are 36,378 hair transplantation enterprises in Operation, Opening and Operating in China, and 4,477 within one year of establishment. Although the main position on the track is Yonghe Medical, Biliansheng, Barley, Xinsheng four major institutions, but with the continuous downward penetration of the market, consumers will have more and more subdivision needs, such as eyebrow planting, medical care, etc., small and medium-sized investors can start from refined demand and meticulous services, and strive for the trust of more customers.
tail
China's medical beauty market seems to be a fiery cooking oil, but in fact, compared with developed countries, China is still in the early stage of development with a very low penetration rate, and there is huge room for development. It is believed that under strict supervision, the medical aesthetic industry will be more standardized and safe, and use more advanced technology and meticulous services to step out of a sustainable development path.
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