Beauty Instrument Story: Israel Beauty Instrument Nuggets China "Yan Value Economy" Behind China'S Capital Surge

Becoming more beautiful is a big demand for modern women, and is also one of the main positions of "consumption upgrading". In order to cater for the Chinese women's pursuit of Yan value, many "foreign monks" are digging gold at this outlet. Many imported beauty instrument brands are pouring into the Chinese market. One of them is the Israeli beauty apparatus. This is also a microcosm of the synergistic effect of Israeli technology grafting on the Chinese market.

"An Israeli black technology beauty meter has entered over second years in China, and its sales volume has exceeded 3 hundred million." A beauty salon company introduced to the economic news reporter in twenty-first Century. It is understood that although these beauty meters are not sold at low prices, usually between 3000-5000 yuan, there are also up to 20 thousand yuan products, but because these Israeli household beauty appliances are mainly RF technology, they claim that they have a compact effect and poke pain in females, which is very popular in the Chinese market.

According to the reporter, China's household beauty instrument market is "mixed up". In the past 2016-2017 years, import brands were dominant, and the beauty apparatus in Japan was selling well, selling at a price of one thousand or two thousand yuan.

"By the year 2018, the brand of the local beauty instrument was up, and the price strategy was low, some even cost one hundred or two hundred yuan." Gao Chen said.

In addition, the market also began to appear nearly 10000 or even tens of thousands of imported beauty apparatus, "beauty instrument is" one cent, one point goods, three cents a lot of goods, "the technology of high priced products is not so expensive, more is a commercial positioning strategy. Shanghai skin Huan Technology Co., Ltd. CEO, former Johnson China Shanghai Technology Research Institute senior researcher Wu Qingbin told the twenty-first Century economic report reporter.

Israel's "black technology" enters China's medical beauty market

The beauty instrument of Israel is a technology called radio frequency, which claims to be effective in tightening skin.

How big is the market? According to the data released by AI consulting, the sales volume of household beauty appliances in 2015 was 3 billion 100 million yuan, and 7 billion yuan in 2017, with an annual growth rate of 51.3%. The estimated sales volume in 2018 was 10 billion 100 million yuan. AI predicts that the growth rate will slow down thereafter, and the forecast sales will be 26 billion 400 million yuan by 2022.

"The beauty market is a hundred billion concept. The market for household beauty appliances is not large. As far as I know, sales of household beauty appliances on Tmall last year were 3 billion -40 billion yuan, which is estimated to reach 5 billion yuan this year. Gao Chen, general manager of Shanghai Yi Mei beauty instrument company, told the twenty-first Century economic report that the company not only operates its own NEWA beauty apparatus in the Chinese market, but also acts as an agent for Israel's beauty products.

A company relies on an Israeli beauty device to land on NASDAQ. A Hongkong trading company named Wei Bo (Fit Boxx) submitted a prospectus on NASDAQ at the end of last year, which mainly used beauty agents and fitness products in Hongkong and the mainland. Prospectus shows that the company's revenue in recent years mainly from the beauty instrument (about 80%), the related income in 2017 increased by 110% compared to 2016, reaching 24 million 600 thousand yuan (about 170 million yuan).

China's capital dominates the home market

In an interview with the economic news reporters in twenty-first Century, we found that there are two kinds of strategies for Israeli beauty instruments to enter the Chinese market: one is to specialize in the Chinese market with several products, and the other is to invest heavily in channels and marketing, which is dominated by Chinese capital.

In 2014, the Chinese company, Europe and America, bought some shares of EndyMed, an Israeli medical instrument company, and entered the domestic market for medical devices with the help of Israel's medical beauty technology.

"Ou Hua was originally a large medical equipment trade, and later encountered a bottleneck period, began overseas business M & A, acquired more than 50% of EndyMed equity. By 2016, our household brand NEWA officially entered the Chinese market and opened Tmall store in May of the same year. In 2017, it experienced explosive growth, and its performance was four or five times. Gao Chen said.

Ou Hua Mei Ke relies on private equity fund. In 2017, Kay Fai fund participated in its B round of financing and invested about 100 million yuan to Europe and China, which mainly helped Europe and China to continue to expand and improve product lines, strengthen market development and investment and acquisitions of overseas high-quality enterprises.

Kai Fai Fund said that the medical beauty industry has been developing rapidly in recent years. China's market penetration is still lower than that of the United States, Japan, Korea, Brazil and other countries, and the overall market has great potential for growth.

According to Gao Chen, it has invested three beauty detectors in China, namely, wired, wireless and intelligent couplet (Bluetooth connected to APP), priced at 2950 yuan, 3950 yuan and 4950 yuan respectively, among which wireless version is the best seller. The chain of product production was imported from Israel, and OEM was done in a factory run by Israelis in Shenzhen.

According to reports, NEWA has invited KOL (key opinion leaders) and net red endorsement products and goods in the past few years.

But this strategy is not perfect. The Chinese market needs some time to run between the new demand and the speed of R & D in Israel. "Our R & D team is very hard to understand the need for new products in the Chinese market every year, and there are some differences in understanding renewal." Gao Chen said frankly.

"In recent years, I have been to Israel more frequently, I will go to different industrial areas to investigate, and find opportunities for product agents in various start-up companies. We will introduce a new product into the Chinese market next month. " Gao Chen said.

Mature brands seek new growth points in China

The second strategy is to find new growth points with mature products to China.

"China is our fastest growing market, and it is not the largest market at present. Our largest market is in Europe now, but the Asian market is bigger and bigger, especially China and Korea. A considerable portion of South Korea's sales are sold to Chinese tourists through duty-free outlets. Israel Medical Instrument Company Silk 'n joint CEO Yoram Sadeh told reporters on twenty-first Century economic report.

According to Sadeh, the company has a mature R & D and production line in Israel, and its products are fully developed and produced in Israel, and then exported to China. He admitted that compared with some competing products in the Chinese market, "the first crab eating" was not too early.

"Some brands mainly attack the Chinese market, and about 90% of the sales come from China, and other markets can hardly find their products. They have achieved great success in China. Sadeh frankly speaking.

Sadeh is also puzzled about how to plough the Chinese market.

"For example, the packaging of our products in Israel is very simple, but in order to cater to Chinese consumers, we will put the products in the high-end gift boxes when they are shipped to China. There are also Chinese partners holding a product that is very popular in China, asking if we can imitate its appearance. I was lost in thought. Do I really need to transform the product to cater to Chinese consumers? Sadeh said.

It is understood that the head of the domestic industry has thrown "olive branch" to Silk 'n, launched a relevant due diligence investigation on the premise of 51% holding merger and acquisition, but the deal failed.

Sadeh said frankly, the company welcomes capital injection from China, so that it can spare no effort to develop products that are more targeted at Chinese consumer demand and increase investment in marketing.

Encounter the adverse trend of "consumer demotion"?

Many industry insiders admitted that the growth rate of the market was somewhat weak in recent two years.

"The consumer demotion" began in mid 2018, and indeed, our sales growth began to slow down. This year, the growth rate is expected to decline, hoping to survive this downturn. It was estimated that the market could be cultivated in 5 years, but due to the 2018-2019 year slowdown, the market is expected to mature in 2025. " Gao Chen said.

Fit Boxx partner Chen Yao also admitted that this year's beauty instrument consumption is affected by the economic environment, and is expected to be unchanged from last year.

A person who works in the head office of the domestic industry has also expressed similar views. "I think most people are very sensitive to price now, and the company is going to face this trend. For home beauty appliances, I am not very optimistic about the so-called "tall upper" products, some high-end household beauty instrument sales situation is not very good, I am more optimistic about composite functions, cost-effective products. The source said. The company acquired a medical beauty equipment supplier in Israel a few years ago.

However, some people are optimistic about the trend of consumption upgrading in China. "We want to be the" Dai Sen "in the field of home beauty appliances, which can successfully break through in a market that has already been crowded with new technology and new design. Sadeh said, "consumers know that" Dai Sen "is very expensive, but will continue to buy its new products.