Waiting for the next “Thermage”

“We were waiting for the supply of Thermage probes, but we couldn’t wait. “Xiao Juehui, the founder of the medical small beauty brand, has felt the fire of the market up close. Last year, the medical beauty project Thermage was shaped into a “wrinkle remover”, the fire out of the circle, this market continues to the present.

In fact, not only Thermage, hydraluminescence, ultra picosecond and other light medical beauty projects have also harvested a batch of “beauty lovers” in the market.

The water light needle is the party Xiao monthly “mandatory course”.

In the May 1 period when the salon launched a card promotion, she did not hesitate to “brush” 5800 yuan to do a hydrophobic needle annual card. The average is more than 480, this is a very good deal. “

The company’s main business is to provide a wide range of products and services. The actual fact is that you can find a lot of people who are not confident that they are going to be able to get rid of the problem.

The party’s obsession with hydrophobic needles originated two years ago. A friend around her recommended her to the water light needle, after playing twice, looking at the mirror pores become smaller, acne marks become lighter face, her fascination with water light needle is unstoppable.

In the beginning, Party Xiao chose to go to a large brand chain hospital for hydration injections, but because there were too many people, it took a long time to line up each time, so she switched to a beauty salon close to home.

“As long as they are qualified, many beauty salons now also have professional physicians and nurses. “For Party Xiao, spending thousands of dollars on expensive face masks is not as good as a hydraluminescence treatment to get immediate results.

According to Avery Consulting research, since 2015, influenced by the face value economy, the medical beauty market is exceptionally hot, entering an explosive growth period. Along with the development of the industry, China’s plastic surgery technology has gradually matured, the price of raw materials such as hyaluronic acid and botulinum toxin has gradually decreased, photoelectric equipment has been upgraded, and the medical beauty services available to beauty seekers have been gradually upgraded.

A report by global consulting firm Sullivan shows that China has become the world’s third largest medical aesthetics market, with a market size of 142.7 billion yuan in 2019. The compound growth rate is expected to be 27.7% over the next five years.

In the capital market, the story around medical aesthetics and “wealth creation” is also being played out.

Recently, Times Angel, the leading company in the orthodontic market of medical aesthetic segmentation track, went to Hong Kong for IPO, becoming the hottest new stock in Hong Kong IPO market in recent months. According to Futu Securities, the number of subscribers to the Futu platform Era Angel was nearly 70,000 in just two days of public offering, with the total subscription amount exceeding HK$40 billion.

Earlier, the three giants in the upstream of the domestic medical beauty industry met in the capital market within a year.

On October 30, 2019, Haohai Biotech was officially listed on the Science and Technology Venture Board (STB), becoming the first “H+STB” biopharmaceutical company. A few days later, Huaxi Bio followed suit and landed on the STB. 2020 On September 28, AMSC was listed on the Shenzhen Stock Exchange and quickly became the third A-share “thousand yuan stock “.

“(Due to the epidemic) in the first half of last year, many medical beauty institutions are moribund. It was only in the second half of the year that they slowed down, and the hot capital market added fuel to the industry. “Shao Hoon, founder of UXO Life Academy, believes that this year is “a very clear year for medical dollars “, the industry penetration rate will continue to increase.

Since the second half of last year, Peng Ai Medical Beauty Hospital, located on Nanshan Avenue in Shenzhen’s Nanshan District, has made a number of changes to its service operation process, including expanding its leisure space, providing free coffee service, and considering adding a queuing call system.

“We spent hundreds of thousands of dollars to dig up a group of baristas specifically to coffee shops to come over and serve our customers. “Peng Ai medical beauty group chairman Zhou Pengwu told all-weather technology, these adjustments are derived from the large increase in the volume of door-to-door customers in the past two years.

“To Peng Ai medical beauty group institutions Peng Ai, Peng Cheng, for example, earlier (before the epidemic) door-to-door customer volume of 80-100 people per day, since the second half of last year, the daily door-to-door volume soared to 400-500 people, sometimes on weekends can be thousands. It’s like catching up, which was previously unthinkable. “He said.

The “China Medical Beauty Market Trends Insight Report” released by Deloitte and Meituan confirms Zhou Pengwu’s statement. According to this report, the volume of medical aesthetic consumption orders and online transactions have grown significantly since the second quarter of last year, with relatively stable customer unit prices. in the third quarter of 2020, the volume of medical aesthetic consumption orders from Meituan increased by 98% year-on-year, customer unit prices increased by 15% year-on-year and total transactions increased by 127% year-on-year.

Zhou Pengwu described the current medical beauty consumption as a “hot pot menu order”. “The hospital gives consumers a price list of items, consumers directly behind the checkbox, targeted and fast, all save the front of the introduction link. “

In Zhou Pengwu’s view, consumers from the past, “compared to three still hesitant” to today The main reason for the “hot pot menu” type to do medical beauty is the result of the early market education. At present, for consumers, medical beauty is no longer a mysterious event that is difficult to share.

In the hot surge of medical beauty projects, photorejuvenation, hydrophobic needle and other non-surgical projects (also known as “light medical beauty”), because no open surgery, short recovery time, high safety The advantages are particularly popular.

Compared to the five or six-figure cost of surgical procedures, light medical beauty is also “pro-people”. Deloitte data show that the average price of head light medical beauty is 4,171 yuan, 3,589 yuan and 3,459 yuan respectively between 2017 and 2019.

“The entrance of medical beauty consumption is light medical beauty. ” said Xiao Juehui, founder of the Medical Xiao Beauty brand. The veteran who has been in the medical beauty industry for eight years decided to start his third business in the direction of light medical beauty in the hydration needle after reorganizing the industry. The reason he gave was that “the entrance of light medical beauty consumption is hydrophobic needle. “

According to the Annual Development Survey Report of China’s Medical Beauty Industry released by the China Plastic Surgery Association, by the end of 2018, the volume of medical beauty services in China exceeded 10 million cases, of which the volume of non-surgical services reached 7 million cases, accounting for 70%.

The report released by Deloitte mentions that in 2019, the hot keywords searched by medical aesthetic users on e-commerce platforms are mainly focused on light medical aesthetic items such as hair removal, small bubbles, Thermage and face slimming injections.

The industry’s hotness has also caused a series of chain reactions.

Last year’s fire out of the circle of Thermage equipment out of stock, is the most intuitive expression of the hot market. In addition to this, some new light medical beauty project equipment is often in short supply.

“Take the Eurostar fotona 4D laser instrument for example, this item is new and everyone is grabbing it. We paid the deposit years ago and still haven’t got the goods. “Zhou Pengwu told All Weather Technology.

Another criterion to judge the industry hot is “not enough people”. Compared to the fast-growing medical beauty market, China’s professional plastic surgeon resources are scarce, the number of medical doctors per million people is much lower than in other countries around the world, the gap is huge. But mature medical doctor training cycle is long, this gap is difficult to fill quickly.

Generally speaking, it takes about 10 years to train an excellent medical aesthetic doctor (5 years of undergraduate, 3 years of master’s/3 years of doctoral, 3 years of residency/specialty training after which you also need to obtain the certificate of attending physician approved by the Ministry of Health in each region). As a result, in today’s booming demand for medical aesthetics, the industry is in chaos with a large number of unlicensed personnel illegally on board.

At the same time, “because of the strong demand for medical doctors in the market, the salary requirements of medical doctors in the whole industry have recently risen very fast. “Shao Hoon introduced, medical beauty doctor salary rose 30%-50% in the last year. The salary of medical aesthetic doctors has been very high, which will also attract many original doctors from other departments to transfer to the Department of Plastic and Reconstructive Surgery, despite this, there is still a shortage of medical aesthetic doctors.

The Avery Consulting report shows that in 2019, the actual number of physicians practicing in China’s medical aesthetics industry is 38,343. If we go by non-multi-point practice, the standard demand number of physicians in medical aesthetic institutions nationwide amounts to 100,000.

In the past year, upstream raw material companies such as Huaxi Bio and Aesthetics have performed quite well in the capital market. Wande data show that as of June 9 closing, the above two companies rose 82.89% and 238.72% in the past year, respectively.

“The market of our institution is also changing, and the performance and revenue are increasing, but not as crazy as the performance of upstream raw material traders in the capital market. “Zhou Pengwu said. Compared with the “rich” upstream, the midstream and downstream medical beauty institutions, in fact, the level of profitability is not optimistic.

Usually, medical beauty service institutions mainly include public hospitals, private medical beauty hospitals and many small treatment institutions three levels.

In the opinion of Yuan Wei, chief medical analyst at IFC Securities, the existence of a large number of small and medium-sized institutions due to the lack of industry concentration has led to very high customer acquisition costs and a very weak brand effect for medical beauty institutions.

“At present, medical beauty institutions’ customer acquisition is mainly through advertising, bidding search, beauty salon inflow, app inflow, etc. The marketing cost is extremely high. Our research found that a large number of medical beauty institutions marketing costs accounted for up to 50% of revenue. “Yuan Wei said.

According to Deloitte’s research, medical aesthetic institutions currently have a narrow profit margin, with employee compensation, material consumption and marketing expenses as the three main costs and expenses, which together account for about 70% of revenue.

Although the transaction volume of the medical aesthetic industry mainly occurs in medical aesthetic service providers, the profit level of medical aesthetic service providers is not optimistic due to the erosion of consumables and drug costs and channel expenses.

According to Deloitte, the value distribution of some of the top medical aesthetic service providers shows that upstream consumables and drugs costs account for about 24% of the revenue of medical aesthetic service providers, downstream marketing expenses account for about 15% of the revenue of medical aesthetic service providers, and after deducting labor costs, rent costs and other operation and management expenses, the net profit of top medical aesthetic service providers is only 7%.

Comparing the financial indicators of Peng Ai Medical Beauty International (AIH.US), it can be found that the gross sales margin of this medical beauty service provider has remained above 60% in the past three years, but the net sales margin is negative in 2018 and 2020, at -33.16% and -27.39%, respectively. In addition, the company’s cost of sales as a percentage of revenue has been above 43% in the past three years, and in 2020, it will be as high as 56.64%.

Shao Hoon said: “Most of the profits of the industry chain are captured by the upstream companies, coupled with the high channel costs, leaving very little profit space for medical beauty service providers in fact. If the agency’s service model is no longer innovative, the future will certainly be challenged in business. “

After realizing that changes must be made, Peng Ai Medical Beauty will “satellite clinics” written into the annual strategic plan.

The so-called “satellite clinics”, that is, open into the community of light medical beauty clinics.

Zhou Pengwu said, its “satellite clinics” will be convenient, good experience of injection and photoelectric light medical beauty project as the entry point, in the form of business unit operation, and open into the community The company will take the lead in creating flow-triggering products, pop-up products and high-margin products in the “satellite clinics”, so that they can provide revenue while bringing stable traffic to the flagship hospitals.

“I now put into Baidu’s marketing costs is a customer 4,000-5,000 yuan, which is only the cost of allowing customers to walk to our institutions, it is not clear whether they can consume. “Zhou Pengwu said that after the model innovation, marketing costs may be reduced significantly.

In the past year, the fifth generation of Thermage (Thermage FLX) burst into the limelight.

Thermage is a medical aesthetic device manufactured by Solta Medical in 2002, which stimulates collagen proliferation and increases the elasticity of collagen fibers through monopolar radio frequency and epidermal cooling technology, thereby tightening sagging skin.

As the probe of Thermage is disposable supplies, single person single head, and can not be used more than 4 hours after opening and using. And the configuration of the probe intelligent chip, temperature sensor and other black technology materials, not only the production cost is not expensive, when the market demand is large, prone to supply shortage.

In addition to Thermage, Sota Medical’s products also include ultrasonic lipolysis, laser hair removal, acne removal and other instruments.

In January 2014, Dr. Kang acquired Sota Medical. after 2018, Thermage FLX (the fifth generation of Thermage) has been launched in Hong Kong, Japan, Korea, Taiwan, Singapore and other Asian regions.

Doctorcom’s financial report shows that Solta Medical, which manufactures Thermage, had global revenue of $111 million, $135 million and $194 million in fiscal years 2017, 2018 and 2019, respectively, due to brisk sales.

In 2019, Thermage began to tighten up in China and became the traffic bearer of the domestic medical beauty industry.

The 2020 Medical Beauty Industry White Paper released by More Beauty APP says that last year, the order growth rate of Thermage on More Beauty APP was 281%, more than three times that of 2019, making it the medical beauty item with the fastest order growth rate.

Meanwhile, the 2020 industry data released by Xinxiao APP shows that among the many medical aesthetic items, Thermage accounts for 45% of the platform’s orders, far surpassing the second-place Hotlift and holding the first place.

In China, Thermage is represented by Dr. Leng, a subsidiary of Dr. Kang. Since April this year, Dr. Lund, for its part, has started to limit the number of orders per time for authorized institutions to a maximum of 30 for a single order. According to Interface News, due to the tight supply, some institutions, for new customers, have now started to need to start booking treatment only after the face-to-face consultation and payment is over.

The price of Thermage, which was madly ordered, is actually not cheap. At present, in a first-tier city, the price of a single session of the fourth generation of full-face “Thermage” (except for the eyes) is about 18,000 yuan, and if the eyes are added, it can be about 25,000 yuan; and the fifth generation The average price of “Thermage” can be 21,000 yuan to 38,000 yuan a time.

This also led to the supply of tight situation, the market appeared bad business in pursuit of high profits and procurement of cottage equipment and fake “Thermage” to consumers to use, chaos The problem is that there is no end to it.

The high price, the lack of goods, and the risks, even so, have not stopped consumers from pursuing it.

Why is it Thermage? The answer given by Xiao Juehui includes key words such as efficacy and marketing. “The new consumer crowd is more important to efficiency, Thermage is effective and can be done once a year. “

In the field of beauty and skin care, the word “anti-aging” has always been frequently mentioned, especially for consumers over 30 years old with increased demand for anti-aging, while having higher spending power. The high-end lifting and tightening project represented by Thermage has become a hot spot for consumption growth.

The internet, especially social media, has been the main driver for the popularity of the medical aesthetic market in recent years.

With the increasing popularity of “Internet + light medical beauty” model, more people are involved in the marketing of medical beauty services, and Thermage is an excellent example of such communication. From Yu Shuxin, Yi Nengjing, Zhang Yuqi and other celebrities in the program recommendation, the initial market education of consumers; social media net red, KOL promotion, so that this device into the public view. Finally, the vegetarians share in the private domain, making the Thermage more “people-friendly”. Nowadays, there are more than 90,000 related notes when you search for “Thermage” on the social platform Xiaohongshu.

Unlike the traditional marketing model of inviting celebrities to shoot hard publicity, social sharing channels allow medical beauty programs to better penetrate into consumers’ lives.

For the medical beauty industry, which has a fast food consumption trend, the popular “Thermage” also has to face the challenge of new products in the future.

The wind of Thermage has not yet stopped, but another wind has been blowing in the medical beauty industry. Recently, another anti-aging device that has been planted on major platforms is the Eurostar Fotona 4D. According to the official propaganda, this device can provide contour lifting, lipolysis, double chin removal, improvement of lines, skin tone brightening, anti-aging around the eyes and other effects. However, unlike Thermage, the Eurostar treatment is less painful, less expensive and has a longer treatment time and course.

Shao Hoon introduced that in the medical beauty industry, every year there will be some new medical beauty projects on line, but the eternal basic project is the health management of the skin.

The industry needs to keep launching new projects in waves, “quite simply, so as to cycle and make money. “Xiao Juehui said.

(Party Xiao is a pseudonym in the article)