The Medical Cosmetology Of "Scientific Beauty" Has Been Warmly Welcomed By Consumers

? ?“ Everyone has a heart for beauty. " With the iteration of technology and the popularization of aesthetic concept, the medical cosmetology of "scientific beauty" has been warmly welcomed by consumers, and various medical and aesthetic products have flooded into the public's sight: hyaluronic acid, botulinum, collagen, etc. Consumers' eternal pursuit of "beauty" makes the medical and aesthetic market have a continuous topic and strong vitality.

When the basic needs such as clothing, food, housing and transportation are met, the consumption structure inclines to the service industry. Under the "beauty economy", people can get the "beauty change" medical and aesthetic market objectively, and the industry demand is releasing year by year. This industry always "explodes" everyone's attention and leads to heated discussions. From the hyaluronic acid drinking water of Huaxi biological, to the first domestic neck tattoo repair injection Aimei kehei body, aibowei's "net red drug" xiulemei, and then to the projects of hair planting and tooth beauty that are "planted" by new consumer forces, medical beauty has really penetrated into the daily life of consumers, However, most people do not know too much about the capital story behind the industry.

In the past 2020, the undercurrent of medical and aesthetic industry surged. Based on the public data, the 21st century innovation capital research institute sorted out the investment and financing events of the medical and aesthetic industry in 2020. It paid special attention to the fact that there are many high-quality objects in the secondary market, and there is no big disparity in the different inspection directions of the medical and aesthetic projects by institutional investors. The projects with strong comprehensive strength and high quality are easily favored by the capital.

On the whole, although the medical and American related targets in the overall secondary market are quite popular recently, the heat of the primary market is not high, and there are investment and financing events in the upper, middle and lower reaches of the industry in 2020.

The primary and secondary market differentiation is accelerated, and the strong of high-quality standard is always strong

Recently, the listed companies in the concept board of medical and medical technology have successively disclosed the first quarter performance of 2021. Many companies' performance has risen rapidly, and the net profit returned to the parent company has basically achieved positive growth. The concept plate of medical beauty has ushered in a wave of hot speculation.

Looking at the primary market, the data shows that 2015-2018 is the financing peak of the medical and American industry, and there are 14 investment and financing events in 2020. In terms of financing amount, in 2020, there are 7 financing projects with the level of 10 million yuan or above of the medical and American brand. Among them, liantianmei enterprise won the first place in the single round financing amount with 691 million yuan of merger and acquisition financing. Its core business involves the integration of medical resources and brand operation, and the investor is Aoyuan health.

1. Upstream: products are the king, and manufacturers tend to purchase and replace R & D

Although the composition of the medical and American market is diversified, the upstream products, such as hyaluronic acid and botulinum toxin, are more eye-catching on the whole. Such products themselves consume fast, the consumer demand space is larger, and the profit space is also large. According to public information, AMEC (300896. SZ) plans to invest 191 million yuan in capacity expansion to meet market demand. Soochow securities predicts that in 2025, the terminal market scale of hyaluronic acid will be about 51.5 billion yuan, that of botulinum toxin will be 19 billion yuan, and that of Haiti factory will be 3.9 billion yuan.

Taking the hyaluronic acid market, the most important component of the industry upstream, as an example, at present, aierjian, aimike (300896. SZ), Huaxi Biology (688363. SH), haohaishengke (688366. SH) and other enterprises have occupied the main market share in China. From the perspective of competition pattern, the domestic market of hyaluronic acid in medical cosmetology is still dominated by foreign capital, and the space for import substitution is obvious. As the unit price of domestic brands is lower than that of imported products, the top three domestic enterprises in China accounted for only 22.4% in 2018, and imported brand products still occupy the dominant position in the market.

The 21st century innovation capital Research Institute believes that the market competition of hyaluronic acid is becoming increasingly fierce, and it is difficult for homogenized products to occupy an advantage in the market for a long time, and consumers will be more inclined to products that can solve a certain demand and pain point professionally and effectively. With the increasing categories of domestic products and technological innovation, the quality of domestic products is gradually improving, and the market sales revenue of local brands is expected to further improve.

Among them, Haiti developed by aimeko (300896. SZ) is the first injection material for cervical wrinkles repair in China, which is mainly used for intradermal dermis injection filling to correct moderate and severe neck wrinkles. Since its listing in 2017, the revenue of Haiti has increased from RMB 30 million to RMB 450 million in 2020, which successfully stands out from the differentiated competition in hyaluronic acid market.

According to frost Sullivan analysis and prediction, the market scale of hyaluronic acid terminal products in China will exceed 5 billion yuan in 2021, and the proportion of local brands will reach about 30%. In other markets (botulinum toxin, etc.), the market share of domestic brands also has an upward trend.

We have observed that at present, there are few enterprises with obvious differentiation of medical and American consumable products in the domestic primary market, and the rate of homogenized products can only be "cannibalized" in the price war. In the end, there are only a few companies for institutional investors to choose from.

But similar to the beauty bed class product renewal iteration is slow, the consumption is also relatively slow, less attention by the market. The 21st century innovation capital research institute speculates from the products produced by Yinhu Medical Co., Ltd. that most of the equipment purchased belong to medical and aesthetic institutions, beauty salons, oral medical institutions and other enterprises. According to the official website of Yinhu medical, its products not only sell at home, but also open up the middle and high-end markets in Europe and America. Silver fox medical, which produces beauty bed, can be listed on the new third board, which also shows that the medical beauty market space is gradually being developed.

With the development of technology, compared with oral administration, injection and ointment, micro needle administration may become a new trend. In 2018, China Science micro needle won tens of millions of angel round financing from venture capital of Chinese Academy of Sciences and China Science and technology creation star. In April 2020, China Science micro needle completed the pre-A round of financing, and the investor was Chongqing Zhongke Yinghui fund. There are two ways to explore the commercialization of Zhongke microneedles. One of them is to deliver a kind of equipment and medical and aesthetic products to the market. Products have been put on the market in terms of freckle removal, acne removal, wrinkle removal and dark eye socket removal.

For upstream manufacturers, the most direct and efficient way to complete product innovation is undoubtedly acquisition and replacement research and development. The most representative event is abbvie's acquisition of aierjian, with a transaction price of about $63 billion.

According to public information, in 2011, Abbott announced that it would split the company into two parts, one of which is abbvie, which includes medical services, diagnostic equipment and nutrition products. Abbott also acquired the "online Red drug" of abbvie. At present, abbvie may not be really good at R & D, but it has a good eye for acquisitions.

In 2020, the other three upstream investment and financing events are aimex (300896. SZ) IPO in Shenzhen Stock Exchange, Yinhu medical listed on the new third board and Zhongke micro needle obtaining pre-A financing of Chongqing Zhongke Yinghui fund.

2. Midstream: the financing of service providers is poor, and subdivided players are more favored by capital

In 2020, the investment and financing situation of stock service providers in the medical and American industry can not be described as too much. Among them, the internet medical beauty platform that can attract more money earlier is also silent. On the contrary, some new players from the perspective of content service have obtained investment and financing, including strict selection of sample beauty, Wanyan technology, and internal reference of medical and aesthetic industry.

The main positioning of sample beauty is to output the IP matrix of medical beauty, and to drain the IP content of medical beauty to the e-commerce platform for realization. It is reported that sample beauty has planned three live programs and has signed a strategic cooperation with Huaxi biological. Wanyan technology mainly provides two types of services for brands. On the one hand, it is an online full platform agent operation service, on the other hand, it is a complete link solution of global content marketing service. The internal reference of medical and American industry is mainly for the B end of the industry, providing training, membership, investment promotion, industrial data analysis and industrial capital services in addition to media activities.

From the probability of financing events, we can clearly feel that the enterprises providing services in the subdivided fields are more likely to be favored by capital. If infrastructure enterprises, such as SaaS system and internet medical and beauty platform, have obtained financing before, then in 2020, they will be more likely to provide content services and operation services for the platform.

3. Downstream: a surge of mergers and acquisitions

Looking at the downstream of the medical and aesthetic industry, the Institute of innovation capital in the 21st century finds that there is a surge of mergers and acquisitions of medical and aesthetic institutions directly serving consumers. There are mainly two M & A events

First, landsie (002612. SZ) acquired 30% equity of six medical and beauty institutions, including Sichuan Milan Boyu medical beauty hospital Co., Ltd., Shenzhen Milan Baiyu medical beauty clinic, Sichuan Jingfu medical beauty hospital Co., Ltd., and achieved 100% control of these institutions. Longzi entered the medical beauty market in 2016. In 2020, due to the impact of the epidemic situation, the women's clothing business of Longzi Co., Ltd. is facing great pressure, and the medical beauty business is supporting its revenue at the right time. According to the annual report of 2020, the proportion of langzi's fashion women's wear, medical cosmetology, and green baby and child products accounted for 45.99%, 28.25% and 23.63% of revenue respectively.

Secondly, pengai medical (00177. HK) was acquired several times in the first half of 2020, including 70% equity of Xi'an Xinpeng aiyueji medical cosmetology clinic Co., Ltd., 80% equity of Liangyan medical group, 80% equity of Shanghai Mingyue medical cosmetology outpatient department Co., Ltd. and 51% equity of Guangdong Hanfei. Among them, Guangdong Han Fei has set up 4 beauty salons in Guangzhou, Zhongshan and Zhuhai, providing surgical, non surgical and other beauty services.

According to the statistics of the 21st century innovation capital research institute, Peng AI medical currently has 21 medical beauty centers, 19 of which are wholly owned or controlled, and most of the medical beauty centers are acquired by the company. It is not difficult to understand that under the influence of the epidemic situation, the merger and acquisition resistance of institutions is smaller, and it is easier to obtain price concessions. For downstream institutions, this is the best opportunity to form chain potential energy.

The market is highly dispersed, and the service supply and demand side grow rapidly

According to the data of "new oxygen 2020 medical and aesthetic industry white paper", the domestic medical and American market scale will reach 19.5 billion yuan in 2020, accounting for 17% of the total global market size, and is expected to become the world's largest medical and beauty country. At present, the competition pattern of China's medical beauty market is highly decentralized, and the industry concentration is low. At the same time, the medical beauty projects have the characteristics of personalized consumption and regional differentiation. From the perspective of institutional distribution, Chinese medical and aesthetic resources are mainly concentrated in the first tier cities, Yangtze River Delta, Pearl River Delta and Southwest (Chengdu, Chongqing), with obvious regional characteristics.

In the process of research, the Institute of innovation capital in the 21st century has noticed that although there are many investment targets in the market, only a few of them have received the attention of institutional investors except for the enterprises with "hard technology" attribute and business model innovation. There is no big disparity between the different inspection directions of medical and American projects by institutional investors. The projects with strong comprehensive strength and high quality are easily favored by capital.

VC / PE focuses on the upstream link of the industry chain. In the rapid development period in the past few years, the middle and lower reaches of the medical and aesthetic industry chain, especially the downstream links, have become the entrepreneurial outlet. However, with the increase of competitors, the market competition pressure is also increasing. In the case of limited market segmentation scale, the advantages of head players are gradually showing. From the perspective of investment and financing events, the choice of institutional investors reflects that high-quality start-up companies in the middle and upper reaches of the industrial chain are more concerned.

The first and second tier cities are still the important investment towns of medical and American enterprises, and also the focus areas of medical and American institutional investors. Although the consumption upgrading in the third and fourth tier cities is regarded as the driving force for the development of the medical and aesthetic industry, in the actual investment, large medical and aesthetic institutions continue to merge and penetrate into the third and fourth tier cities, while the local medical and aesthetic institutions have not reached the chain scale, which also raises the threshold for investment institutions to enter.

Medical and American listed companies will have a great dependence on performance. If there is not enough excellent performance support in the stock market, it is difficult to support the stock price only by relying on concept themes. With more and more practitioners, it is difficult for the growth rate of consumers to keep up with the growth rate of practitioners. Competition will inevitably arise, and the performance of companies will also be differentiated. Companies with good service and high technology content will inevitably attract more consumers, while companies with poor service and homogenization will experience performance decline.

According to the data of prospective industry research institute, the penetration rate of China's medical and American projects will be 3.6% in 2019. However, it is still significantly different from that of South Korea (20.5%), the United States (16.6%) and Japan (11%).

New oxygen (SY) introduced to the 21st century innovation capital research institute that the consumption concept of plastic surgery in China is changing actively. With the improvement of medical and aesthetic products and equipment technology and the popularization of medical and aesthetic knowledge, people's concept of plastic surgery is changing to a positive attitude. According to the new oxygen data research institute, in 2020, nearly 70% of consumers under 30 years old and more than 90% under 35 years old.

On the whole, with the growth of age, the willingness of medical and aesthetic consumption is stronger and the investment is greater. In the future, with the post-90s as the main force of consumer groups, the investment is expected to be greater, and the overall market size is also expected to further increase. In addition, the industrial chain is in full swing, but it still needs to evolve. In particular, with the strengthening of industry rectification and stricter supervision, the development of industry standardization will be promoted.

According to Pacific Securities report, China's medical beauty market is one of the fastest growing medical beauty markets in the world. Affected by economic development, per capita disposable income, purchasing power and personal medical and aesthetic awareness, the compound annual growth rate is expected to be 24.2% by 2023.

Injection is a popular medical and American consumption project, hyaluronic acid and botulinum toxin are the most popular. Non surgical plastic surgery has a higher market acceptance rate and repurchase rate, and its growth rate is faster, and its market share is increasing year by year. According to the big data of new oxygen, hyaluronic acid and botulinum toxin injection accounted for about 99% of the total consumption items of injection medicine and America in 2019. Among them, hyaluronic acid accounted for 66.59%, with a year-on-year increase of 53.11%; Botulinum toxin injection accounted for 32.67%, with a year-on-year increase of 90.56%. Other injection projects accounted for a small proportion, but the growth rate was also higher than 60%. Pacific Securities estimates that by 2030, the proportion of hyaluronic acid projects may drop to about 51%, the proportion of botulinum toxin may increase to about 42%, and the proportion of other projects will increase to about 7%.

At this stage, China's medical beauty market is in a period of rapid development, with the continuous improvement of social recognition, consumer groups from high-end consumers to public consumers. At the same time, more and more men also favor medical beauty. The overall consumer group reflects the trend of popularization, younger age and gender.

Wang Jun, vice president of gengmei app, disclosed to the 21st century innovation capital research institute that at present, the male medical and beauty consumers in China account for about 10% of the total, while in South Korea, it can basically reach three to four times that of China. The global male medical and beauty consumption proportion also reached about 14% as early as 2016. The potential consumers of Chinese men's medicine and beauty are as high as 37%, which has great market potential.

In the future, China has a high space for improvement in medical and aesthetic fields such as tooth shaping, anti-aging and body shaping. Taking dentistry as an example, with the upgrading of consumption concept year by year, the dental market scale has expanded rapidly, with a compound growth rate of more than 18% in the past decade, and a market scale of 100 billion yuan has been formed. In the future, more and more people will pay attention to dental beauty.

The 21st century innovation capital Research Institute believes that with the upgrading of consumption and the increase of the penetration rate of medical and aesthetic services, the popularity of the medical and aesthetic industry is increasing year by year, and the supply and demand sides of medical and aesthetic services are growing rapidly, with strong market and consumption attributes. According to iResearch consulting data, it is estimated that the market size of China's medical and American medicine will expand to 311.5 billion yuan in 2023, and will still maintain a rapid growth rate.

?