Expert Meeting Minutes | Seven Development Trends of the China Medical Aesthetics Industry

1. In the past three years, China's medical beauty industry has undergone earth-shaking changes, and non-surgical products occupy the mainstream

2. The brand is a marketing tool and a social contract for the legal entity to face society. Last year, it began to issue documents on supervising medical aesthetics, focusing on doctors' qualifications, marketing, and the capabilities of three types of equipment manufacturers.

3. In the era of significant capital, medical beauty brands with higher quality and value can efficiently transform the trust of beauty seekers into consumer behavior, thus returning money efficiently.

China's medical and aesthetic industry has undergone earth-shaking changes in the past three years. Non-surgical products have dominated the mainstream: From the perspective of the industry market, the ratio of surgical to non-surgical is 6:4 in 19 years and 4:6 in 22 years; online market Look, the surgical: non-surgical ratio was 8:2 in 2019 and 2:8 in 22.

Affected by the equal emphasis on non-surgical medical aesthetics doctor technology and product and equipment technology, the dependence of medical aesthetic institutions on doctors is decreasing. The era of large chains in China's medical beauty industry has just begun.

After getting rid of the shackles of the talent structure and lowering the chain threshold of medical aesthetic institutions, the era of significant capital in China's medical aesthetic industry has just begun.

In the era of significant capital, medical beauty brands with higher quality and value can efficiently transform the trust of beauty seekers into consumer behavior and thus return money efficiently.

With the increasing maturity of medical beauty brands and the more comprehensive and stricter supervision of the medical beauty industry, the era of full marketing in the medical beauty industry is over. Regarding the entry threshold, medical devices, business scope, etc., a series of content compliance supervision continues to be strengthened.

With the popularization of chains in the medical aesthetics industry and the advancement of technology, the average order value of medical aesthetics consumption will show a downward trend year by year. Comparing the average order price, the photoelectric project has the lowest unit price, far lower than the overall Chinese medical aesthetics market items.

According to the data on the proportion of paying users of different age groups in H1 in 2022, the proportion of paying users over the age of 26 has exceeded 50%, and the age group of mainstream user groups has undergone a fundamental change.

The seventh major trend: dual-technology, dual-brand quad-core drive

Almost all doctors, products, equipment, medical aesthetic institutions, and medical aesthetic projects can be easily found online. With the tightening of regulations, the space for excessive marketing by using information asymmetry has become smaller and smaller.

1. The main reason the medical beauty e-commerce platform Nuxinyang can survive is that the institution needs to attract new users, the number of surgery orders is high, and the repurchase rate is low. In the era of surgery, the marketing link occupied too much cost. After the new oxygen was cut in, 2 billion was cut from the 80 billion plates. With the technological progress of manufacturers and the epidemic situation,

2. In the past three years, China's medical beauty industry has undergone earth-shaking changes, and non-surgical products have dominated the mainstream: From the perspective of the industry market, the ratio of surgical to non-surgical is 6:4 in 2019 and 4:6 in 22 (online 16%:84%). If the surgical market accounts for more than 60%, there is no investment value, and it depends on doctors. Reproducibility could be better. There is no scale. It is an excellent opportunity to invest in the medical beauty industry now. More than 80% of light medical beauty solves the problem that talents cannot be copied, and injections and photoelectric equipment essentially replace doctor skills. The primary medical beauty market has changed, and the follow-up investment value trend can be seen.

3. In the past, medical aesthetics could have high gross profit and high profit, but it was challenging to have a high valuation; optoelectronics and injections standardized services and needs, and doctors only needed to get a license and play according to the gear; mesoderm injection, meat Poison/hyaluronic acid injection has technical content, but it is not as tricky as surgery, which significantly stimulates the expansion of the terminal chain.

4. The terminal could be more prosperous mainly because there are too few stores, and the core talents cannot be copied. Now consumer cognition has changed. In the past, it was necessary to change the appearance. Still, the core demand is anti-aging, which solves the problem of doctors' copying and can open more stores, cover more consumers, and form a more significant scale effect. Terminals can replicate themselves at a lower cost.

5. In the past, it was a sizeable comprehensive store with an area of 8,000 square meters. The newly opened medical beauty brands after 2010 are all focusing on light medical beauty, which is convenient for low-cost chains. If it focuses on generalization, it will be similar to United Rieger. Although there are 60 stores, there are very few central hospitals. The Putian stores are all large stores, with a maximum of 40 stores, and some Putian stores can only open 20 stores; the era of large chains is coming. Even if there is no angel round investment in the current market, many institutional owners will continue to chain as long as they have money, and the good times will come soon.

Two major capital activation processes are the war of thousands of regiments and the war of e-commerce. The fight is about people and money. After establishing the era of large chains, the investment of tens of billions and hundreds of billions will come in; now, IPO2-300 million is very happy. There were only 3 cases last year, and the highest one was only valued at about 100 million yuan. In the future, it is expected that there will be tens of billions of investments. Many significant funds are under consideration, and the first investment will be around 10 billion yuan.

1. The past era of a single store and doctor brand is over. When there are more chains and more attention is paid to institutional brands, the ROI of such investment is high.

2. Manufacturers: From the dominance of foreign capital to the current three-point world of agency, pure foreign capital, and local (according to the consumer purchase data of the New Oxygen platform, spending money to buy represents the most loyal behavior). With so many chains, everyone will pay more attention to their brand image, increasing the premium. In the past, medical and aesthetic institutions didn't care much about brands. The institutions mainly focused on attracting new users, primarily surgery, and the repurchase rate was too low. It didn't make sense to care about brands; manufacturers 2B didn't care about brands either. In the future, it will enter the stage of active brand marketing.

1. The brand is a marketing tool and a social contract for the legal entity to face society. Last year, it began to issue documents on supervising medical aesthetics, focusing on doctor qualifications, marketing, and qualifications of three types of equipment manufacturers.

2. Key points of future supervision: continuous tightening. Before June, management focused on accurate product identification and traceability, through what link it will reach consumers, and by what method it will be traced back. The era of full-scale marketing of medical aesthetics is over, and video face-to-face consultations and live broadcasts are no longer available. After fewer delivery methods, ROI will decrease, and the future will be an era of excellent compliance.

1. With Qingyimei occupying more than 80% of the market share, the average unit price of Xinyang is about 1,000 yuan, and Meituan is about 700 yuan. Because the strategy is different, the operation was previously the primary disk of deoxygenation. The price of 1,000 yuan is close to that of daily skin care. It costs about 1,000 yuan for medical beauty maintenance, the grade of everyday mid-to-high-end skin care products. In terms of effect, only medical beauty can be transformed into actual changes, and beauty makeup is more taxed on IQ;

2. There are more and more chains, and the emphasis on brands is increasing. They can only make small profits but sell quickly. Building a big brand is becoming increasingly complex, and the unit price of customers will decline. Doctors who maintain high premiums are only suitable for small-chain institutions. After the big chain will be cheaper in the future;

3. The position of medical aesthetics in the consumption field has changed. It used to be a luxury product, but it will become a high-end, fast-moving consumer product, and daily maintenance will become a fast-moving consumer product. It will be more convenient when there are more stores, and it can be done in the community, and the order volume will increase.

1. Before 19 years, more than 70% of the users of New Oxygen will not be over 25 years old:

a) New Oxygen, as an e-commerce platform, is cheap;

b) From 2013 to 2019, the core talents are shifting to the first-tier coastal and super-first-tier cities. Girls in low-tier cities will change their appearance and go to big cities to find opportunities;

c) The courage of young people in the era of surgery will be greater

2. 25-40 is China's core medical beauty group. Judging from the order data, there are many repurchases more than two times, 35-40. Overall, people over 25 years old account for 50%, and there are more mature people. Entering the era of rational consumers, the age of big brands, and the period of ample compliance are very suitable. Genuine products will have different effects when promoted now than in the past.

1. Xinyang promotes information symmetry, and the e-commerce platform passively enables the salinization of industry information.

2. In the previous era, information asymmetry drove marketing and excessively increased prices. Now that the marketing-driven age is over, pure marketing can no longer be gone, and New Oxygen promotes the symmetry of information;

a) Doctor's technology brand: Some doctors will develop more products according to the product. For example, Jiang Zhenzhen, who earns the most money in delicate medical beauty in China, first invented the shaping hyaluronic acid, which broke through the limitations of the face and slapped the ears and shoulders. The two shoulders cost 700,000 to 1 million yuan and will be gone in 2 years. Follow-up play will cost so much money.

b) Technology brands of upstream manufacturers: In the era of delicate medical beauty, doctor technology combined with product technology will have explosive influence and provide incremental growth for the industry.

c) 2C brand image of upstream manufacturers: Consumers' awareness of upstream products will also become a driving force. In the past, industry conferences were held to influence institutional decision-makers. With the increase in penetration rate, consumers' ability to make independent decisions has become more robust, and institutional buttocks determine the head; there is a trend of C2B reverse customization, the C-end is ready, and the B-end will sell the goods;

d) Institutional 2C brand image: Many manufacturers are now working to enhance the influence of the C-end. Many of them are already in the head and are very anxious. They want to increase their volume quickly, and large consulting companies accept jobs. C-end reverse purchase has become a trend.

4. I am more optimistic about the investment opportunities of downstream institutions because the downstream is relatively cheap now, and the upstream is already very expensive, and the downstream will soon be chained.

1. We have yet to see more than 15%. It can only be said that in the future, there will be fewer and fewer doctors who will enter small profits, but quick sales, centralized procurement, and premium prices, and the cost of doctors to bear will decrease;

2. The quantity of centralized procurement is large, and the purchase price can be preferentially purchased from the manufacturer;

3. The ROI will increase, attracting new customers and lowering the cost;

4. Compared with surgeons, institution owners are particularly vulnerable, and the doctor's premium is significantly lower. Previously, Korean doctors had an annual salary of 15 million, and institution owners needed to make more money. The doctor's premium space became softer, and the equipment lowered the doctor's premium.

In the past, surgeons were mainly surgeons; some could only learn after obtaining a license. Many of them were transferred from other professions. In recent years, there has been a specialty in medical aesthetics. It has only been open for 2-3 years, and the examination of medical aesthetic qualifications has also been standardized. Yes, doctors in other departments have obtained a doctor's license, and it will be solved gradually in the next ten years, but it will take time.