China’s medical and beauty market, which is neither medical nor beauty, is like a giant deformed child suffering from all the industrial diseases of medical, beauty and even Internet advertising. Every pore of it can be summarized as “chaos” — upstream raw material market is full of parallel goods; In the middle reaches of the medical and aesthetic institutions, illegal employment, lease of qualification certificate, and over indication of medication; Downstream channel providers “dare to blow anything” and marketers’ false advertisements are flying all over the world.
As the cash entry of the whole industrial chain, medical and aesthetic institutions directly face consumers, which is the most important link in the whole industrial chain. It is also the focus of medical and aesthetic chaos. It is the biggest, most painful and most conspicuous focus of this deformed child.
Another symbiotic word of chaos is profiteering. However, since the end of 2018, medical and beauty institutions have ushered in a wave of bankruptcy, and even many people in the industry believe that medical and beauty has entered a “recession period”.
The plastic surgery department of public hospitals and the large-scale chain medical beauty group have a better life, but for the small and medium-sized private institutions, which account for 75% of the formal market, the brand effect and capital appeal are not as good as the former two, the bargaining power of raw materials is not high, the customer acquisition cost increases sharply, the market supply exceeds demand, the homogenization competition is fierce, and the living environment is getting worse and worse.
According to tianyancha data, 2030 of the newly established medical beauty enterprises between June 2020 and June 2021 have been cancelled.
To make matters worse, the “current” informal institutions are still rampant, which use fake and inferior products and instruments, have no certificates or qualifications, and even can not be supervised. According to the market research statistics of CCTV, the market scale of domestic formal medical and American institutions is about 87.8 billion yuan, while the black market scale is about 136.7 billion yuan.
The market of medical and American institutions is in a sea of blood.
Two days of ice and fire: the track is worth trillions, but the medical and beauty institutions are difficult to make profits
The bright future of the medical beauty market always begins with “the penetration rate of medical beauty in China is far lower than that in the United States, Brazil, Japan and South Korea”.
In the past decade or so, China’s penetration rate of medical beauty has increased from 1.5% to 3.6%, but it is far less than that of the world’s major medical beauty countries – about one-third of that of Japan, one-fifth of that of the United States, and one sixth of that of South Korea.
This seems to be a market with unlimited potential and unsatisfied demand – the current market size is 200 billion. If the penetration rate catches up with Japan, it will be 600 billion. If it catches up with the United States, it will be trillion.
In the eyes of many people, Yimei is indeed “a huge profit”. The factory price of hyaluronic acid, which costs more than ten yuan, is several hundred yuan, and the net profit is more than ten times. When it comes to the end consumers, it becomes thousands or tens of thousands of yuan.
“Breast prosthesis for breast augmentation costs tens of thousands of yuan. If you think about it carefully, what’s the value of two pieces of silicone?”.
Windfall profits, or imagined windfall profits, attract all walks of life and all kinds of capital to share. After the three giants of raw materials gathered in a shares, the accumulated market value exceeded 100 billion yuan. Many real estate developers, Chinese medicine enterprises and clothing brands entered the market with high profile. Baidu, meituan, Ali and Jingdong all have medical beauty business segments, and the vertical medical beauty platform is booming.
In May this year, at the annual performance presentation meeting six months after the transformation of real estate company aoyuanmeigu into medical beauty, Hu ran, its president, said, “don’t underestimate the determination of real estate developers to enter the medical beauty industry.”
The other side of the hot track is that the medical and beauty institutions, as the cash entry of the whole industry chain and directly facing consumers, are getting more and more difficult.
A practitioner analyzed to eight point health news: “the whole industry, so many chains, the outside world seems to be a whole, in fact, all of them are known in the industry, the profits are all in the upstream, in the channel… The new growth speed of medical and beauty institutions is faster than the development speed of audience demand.”.
Eight o’clock health news learned from many channel hospitals that 50% to 80% of the income of these channel medical and beauty institutions went to downstream channels such as beauty salons, bars and KTV. “The little brother in the bar, by pushing our little sister to make chest, nose and eyes, soon opened a Mercedes Benz… If you don’t give it, someone will give it.”.
The days of hospitals and clinics in offline channels are becoming more and more “difficult”. People in the marketing department are pulling customers like wolves. “A marketing department officer of a channel hospital told badian Jianwen that there are more than 300 marketing department employees in the hospital with less than 400 people, and the whole marketing department can share 13% of the income.
“Looking at the running water is very high, in fact, the Dean doesn’t make money.” 50% is given to the channel, 12% to the marketing department, and the remaining 30% covers rent, doctors, money consumption and other expenses. Due to the shortage of high-quality doctors in the market and great competition, the investment of plastic surgeons is also a large cost to the hospital.
Shi Jiyong, a former senior manager in Guangzhou and Shenzhen, told badian Jianwen that doctors in the industry “for 1-5 years” belong to licensed doctors, with an average salary of 20000-50000, doctors in charge for 8-10 years basically range from 80000 to 120000, and vice senior doctors for 15-20 years range from 150000 to 180000. “Monthly salary”.
The situation is still changing in a more difficult direction, “young sisters are all on the Internet, and the clients brought by beauty salon owners are older, with a poor foundation, not suitable for medical beauty projects.”.
The direct guest hospital embracing the Internet is also on the inside roll. Before 2017, the ratio of operation to production can reach 1:6 – spend 1 million to buy advertising for marketing, and finally get 6 million revenue. Now, it is almost common for many medical and aesthetic institutions to “1:1.5” and contribute more than half of their income to internet medical and aesthetic platform for marketing.
The fierce competition makes the hospital have to take the path of small profit but quick turnover. The marketing department and marketing personnel are crazy to solicit customers, and the backstage doctors as tool people can only follow.
“The right to speak lies in the director of operation and consultation. Doctors are only responsible for taking money for surgery.” Doctors are not gods, working long hours, fatigue work for a long time, the risk of accidents will increase, “but there is no way, the salary is high.
“Our principle is that no one will die, and the president will deal with any dispute”. Once there is a dispute, “give money or repair for free, as long as it can’t be passed on” – the high cost of dispute settlement has almost become a part of the cost of medical and aesthetic institutions.
The sudden epidemic situation has brought greater impact to medical and aesthetic institutions. “Compared with last year, large head agencies have only achieved revenue balance, and the performance of a large number of small and medium-sized institutions has shrunk by 10% to 20%, or even more,” Xinxing, founder of new oxygen, said at an award ceremony
“There is no epidemic, and the medical and aesthetic market has reached a turning point.” after the resumption of work, although the high growth rate of the medical and aesthetic market is expected to return to a high level, practitioners of many medical and aesthetic institutions told badian Jianwen that they will not live better in 2021, only more difficult.
From blue sea to blood sea
A senior practitioner recalled that before 2016, this was not the case at all. At that time, the medical beauty market was in short supply and the industry information was not transparent. “Customers asked doctors for surgery.”.
The “direct customer hospitals” distributed all over the country, with a little marketing and advertising, have a considerable income“ The “channel hospital” is not bad either. Beauty salons, KTV, bars, foot washing cities and other life beauty agencies that have accumulated “high-quality and high-end consumers” have continuously sent customers to them.
At that time, even if the downstream life beauty agencies were given 20% or 30% of the profits, the channel hospitals could still make a lot of money.
Many practitioners still recall the prosperous scene of that year, “if they couldn’t earn money at that time, they were embarrassed to say that they were in the medical and aesthetic circle.”.
Looking back, a few things happened in 2016 did lay the seeds for the subsequent changes in the medical beauty market.
In 2016, China’s medical and beauty industry suddenly became a hot spot, and A-share enterprises such as Lanzi and Suning global came in for large-scale mergers and acquisitions. With a valuation of 500 million, Lanzi acquired two brands of Milan Baiyu and Jingfu, creating the most expensive acquisition case in the history of Chinese medical and beauty institutions.
In the same year, the Wei Zexi incident began to affect the cooperation mode between Baidu and Putian.
In the same year, Xinxi began to set up a diary audit team, completed round C investment, and the Internet channel, which mainly focuses on Meditech, began to mature.
Few people realize that the supply and demand of the whole market has quietly changed《 Gong Wei, editor in chief of Meiye observation, pointed out in a research report that since 2015, “China’s medical beauty seems to have entered a state of oversupply.”
Changes in the market are reflected at the end of the year. According to a person in the industry, in 2016, only in Hangzhou, the performance of Putian medical and aesthetic institutions was almost wiped out. Although there was “over marketing”, Putian medical and aesthetic institutions were still a regular force among the medical and aesthetic institutions with mixed advantages and disadvantages at that time.
As a result, in the new year, in 2017, the wind direction suddenly changed, capital stopped to enter the medical beauty market, and the growth rate of the medical beauty market itself also slowed down significantly. Many insiders “obviously felt that the market could not rise.”.
The declining performance makes every medical and aesthetic institution feel a sense of crisis. The balance of the past has been broken. “Between institutions, they begin to grab doctors and customers, and the relationship between supply and demand has been reversed – doctors ask customers to do surgery.” the inner volume begins and is getting more and more serious.
In 2017, an industry observer with the pseudonym of Meiya wrote in China Medical Cosmetology magazine: “before 2016, everyone (Putian Department of Hangzhou) tacitly adhered to a tacit price agreement. At that time, although the price war in the nearby Shanghai Medical Cosmetology market had been broken, regional centers like Hangzhou were still going their own way, It’s all right. ” However, after the baidu Wei Zexi incident, the performance of Hangzhou Putian medical beauty was blocked, and the performance pressure broke the previous delicate price alliance, “the fierce low price war was finally staged in Hangzhou.”
In 2018, Venus, founder of new oxygen, publicly said that medical and beauty institutions are losing money on a large scale, and only 30% of them are profitable. Yang Xiaojiao, director of gengmei business, said in an interview with Chuangye bang, “in 2018, the elimination rate of medical and beauty institutions was 10% ~ 20%, and the turnover rate also increased by about 30%.
Yimei neijuan: price war, Aihong
Medical beauty entered the era of involution, the first performance of price war, price war can be fought for two reasons: first, the technical barriers are not high, making the projects of various hospitals extremely similar; Second, there are many institutions. For example, in 2016, Hangzhou, with a female population of less than 5 million, had nearly 900 medical and beauty related enterprises.
Price war, is the industry shuffle the conventional path. But for the medical and beauty industry, the biggest variable comes from the Internet.
At the beginning of the establishment of the internet medical beauty platform, they were all under the banner of increasing industry transparency and eliminating information asymmetry. They present the doctor’s reputation and project price to consumers, and they break the information barrier between institutions and consumers, which benefits consumers and the direct customer hospitals which have no ready-made channels. The latter begin to embrace the Internet, and medical institutions and Internet platforms quickly enter the honeymoon period.
However, the good time is not long. When the Internet platforms have gathered a large number of users, completed the enclosure, and started to cash in, the game becomes a business bidding for advertising space. In 2017, the information service revenue of new oxygen, a four-year-old medical beauty vertical app, exceeded the scheduled service for the first time, and its main business turned to marketing.
“Originally everyone had their own habitat”, but when a large number of users gathered on the Internet platform, the battlefield shifted to the Internet. A person in the industry introduced the impact of the Internet on medical beauty.
If customers want to get customers on the Internet, medical and beauty institutions have to pay for the platform to buy services. In order to improve the conversion rate, they have to spend more money to buy the most popular keywords and the most prominent advertising space. When doctors’ IP addresses are all packaged and institutions are all making money at a loss, calling for low price promotion, consumers think that the doctor’s reputation will be better if the advertisement is the most prominent, The more cost-effective that is.
“People always dream of cheap and good”, in order to please consumers, but also as profitable as possible, marketing becomes extremely important, even can decide life and death. A person in the industry in Jiangsu and Zhejiang told Jianwen, “good marketing talents are more in demand than doctors.”.
Marketing geniuses adopt some ingenious routines, and “price war” becomes “superficial price war”.
A senior practitioner told badian Jianwen, “on the Internet, 880, 1000 and 2000 double eyelids can be found everywhere. Actually, when I go to the hospital, I say it doesn’t include removing skin and fat. It’s common to add 2000 yuan casually, or upgrade the project to get a packaging project 6800.”. The cost of surgery on the Internet is to compare the price, “hanging sheep’s head to sell dog meat is also a last resort.”.
In order to seize the market, Putian hospital does not grudge marketing costs, and as long as the passenger flow is large, the final benefit is not a problem.
It’s risky to rely on advertising and marketing for drainage. “Only people click the link or just come to consult and chat with you. In the end, no one will do the project, and the money has to be given to the platform.”.
In addition to being led by downstream channels and marketers, medical and beauty institutions also lack bargaining power in the upstream raw material market. China’s medical beauty market concentration is low, even the head chain, occupies a small market share, and small and medium-sized private institutions that do not know each other and compete with each other are more scattered.
Li Bin, executive director of China Plastic Surgery Association, vice president of Beijing Plastic Surgery Association and chairman of United Lige medical and beauty group, angrily mentioned in an article that “after the price war of China’s medical and beauty industry, Aihong is a piece of cake; However, the upstream manufacturers are still making a lot of money, fighting against each other in the medical and beauty institutions, standing on the sidelines and enjoying themselves at ease. ”
83.7 billion regular medical beauty vs 136.7 billion black medical beauty: bad money is driving out good money
In addition to the internal volume of the industry, another trouble faced by a medical and aesthetic organization in China is the gray medical and aesthetic organization that uses three kinds of non equipment and consumables, has low qualification and low cost, and can deceive customers by exaggerating false propaganda.
Gray medical beauty, generally legal and non-compliance. The fierce competition makes the medical beauty have to rack their brains to develop new markets, and even some legal institutions have begun to take risks, playing some edge ball.
The demand of Chinese medical beauty market is largely driven by marketing.
It is difficult to obtain new customers, so we should try to create new projects and tap the new needs of old customers. It is also these marketing geniuses who, with limited raw materials, have brought out countless wonderful medical and aesthetic projects, such as fairy ear, calf muscle block, eyelid down, etc., creating new demands in the weak market.
When the market of young women is saturated, we should try to expand other consumer groups.
Employees of a channel hospital told badian Jianwen that for the elderly consumers who are inconvenient to promote medical and aesthetic surgery, they have prepared “blood evolution, stem cells and liver detoxification”.
According to more beautiful statistics, in recent years, private plastic surged by 105%, “this is a new blue ocean.”.
More and more male medical beauty projects are gradually developed
Compared with the formal and semi formal institutions, the illegal and unethical black medical beauty has more obvious advantages in new business development. In the name of joining in, eight o’clock Jianwen contacted a sales promoter of light medical beauty products. The other side said, “you can start a business after 10000 yuan, and you can work after half a day’s training. You don’t need to open a shop or any qualification, and you don’t have any other investment except agency fees.”.
The products promoted by the company are “quantum instruments” and “atomizers” produced by a “high-end foundry” which has become a regular company.
Quantum instrument with their products, can “fill, wrinkle, enhance, dissolve fat.”. Among them, the filled products are mainly “glucan” and “glucopolypeptide” which are “safer” than hyaluronic acid.
“This product is small. You can put it in your bag. You can ask customers for door-to-door service or open a room. You can do it on weekdays and weekends. You can even chat with customers on the road.”. And the income of this line, can develop offline, still can find a shop to enliven