Capital M&A in medical and beauty industry accelerates chaos in terminal market and falls into vicious competition.

After the Spring Festival, mergers and acquisitions in the medical and beauty industries accelerated, and listed companies frequently expanded their territory. On the evening of February 2 1 day, Haohai Ke Sheng announced that it planned to acquire 63.64% equity of beauty company Ouhuameike with a total investment of 205 million yuan. Coincidentally, Kang Zhe Pharmaceutical Co., Ltd., a veteran pharmaceutical company, also entered the medical beauty track by acquiring Lu Kai, a skin line company; Huadong Pharmaceutical Co., Ltd. invested 600 million yuan to acquire foreign-funded medical beauty companies; Langzi Co., Ltd. plans to set up an M&A fund with a medical beauty equity of 65,438+25 million yuan; and Huaxi Bio continues to expand the medical beauty territory by arranging the hyaluronic acid food field.

The strong wind is blowing on the medical beauty track. The concept index of medical beauty rose all the way in February. As of the close of February 22, US medical stocks continued to strengthen. As of the close of the day, Haohaishengke, Langzi, Huadong Hospital, Aoyang Health and other 14 enterprises rose. However, unlike the secondary market, the performance of medical beauty terminals and upstream enterprises is very different.

Cross-border layout, medical beauty integration faces integration problems.

With the Yan value economy standing at the forefront, the medical and beauty industry has become the "new darling" sought after by various capitals. Established pharmaceutical companies such as Huadong Pharmaceutical Co., Ltd. and Kang Zhe Pharmaceutical Co., Ltd. entered the military medical beauty track, which also attracted female brand Langzi Co., Ltd., new material enterprise Aoyuan Meigu, suning universal, whose main business is real estate, and other enterprises to cross the border, perhaps in order to overtake and occupy the medical beauty market in China.

Specifically, East China Pharmaceutical announced on the evening of February 17 that the company acquired a medical beauty equipment research and development company in Spain for a consideration of 65 million euros. Kang Zhe Pharmaceutical, a veteran pharmaceutical company, has set foot in the field of medical beauty. Before the Spring Festival, it was announced that its subsidiary had wholly acquired Luqa Ventures Co., Ltd., a professional skin line company, and cut into the medical and beauty industry.

In addition, Langzi, which is dominated by women's clothing, has also increased its layout in the field of medical beauty. Recently, the company signed a partnership agreement with Beijing Langzi Hana Asset Management Co., Ltd., a shareholding company, and established the M&A Fund of Medical Beauty-Wuhu Chen Bo No.8 Equity Investment Partnership with its own funds of 65.438+25 billion yuan as a limited partner. Langzi shares said that this investment will further accelerate the development of the company's medical and beauty business scale.

The focus of various capitals on the medical beauty track is not unrelated to the huge market potential of the industry. According to the forecast of iResearch, the market size of medical beauty in China is expected to be 654.38+0975 billion yuan in 2020; In terms of growth rate, the growth rate of China medical beauty market was 29.8% from 20 14 to 20 19, which was much higher than the growth rate of 8.0% in the global medical beauty market in the same period. It is estimated that the growth rate of CAGR from 2019 to 2023 will be 15. 19%, and the medical beauty market in China is expected to exceed 300 billion yuan in 2023.

While the company is expanding its territory, its share price has also risen sharply. After entering the Year of the Ox, A-shares changed direction, from liquor with unlimited scenery before the festival to medical beauty industry. In particular, Aimeike, an upstream producer of medical beauty, ushered in a surge and became the third thousand yuan A-share after Kweichow Moutai and Roborock. As of February 22nd, Aimeike closed at 105 1.47 yuan per share, with a total market value of126.4 billion yuan. Langzi, Aoyang Health, Aoyuan Meigu, Haohai Ke Sheng and other stocks all rose to varying degrees.

Tian Yahua further stated that the medical beauty market in China has developed rapidly, and it can be said that it has entered the era of universal medical beauty. But from the brand point of view, Japan and South Korea are the main brands, and there are few domestic brands. Compared with international brands, China needs to cultivate more international brand enterprises. From the perspective of industrial chain, upstream enterprises are still in the incremental market, and will attract a large number of enterprises to cross the border through mergers and acquisitions in the future.

However, the "cake" of medical beauty is getting bigger and bigger, but at the same time, more and more people want to share it. For cross-border enterprises, interlacing is like a mountain, and the subsequent integration in R&D, production and sales will be an important issue for enterprises. The announcement of East China Medicine shows that once there are differences in the integration with the acquisition company in the later period, it will affect the operating performance of the entire listed company of East China Medicine.

The cost of obtaining customers is high, and the middle and lower reaches of the market are caught in vicious competition.

Medical beauty has always been recognized as a "profiteering" industry, especially the upstream enterprises usually have a very high gross profit margin, even higher than the well-known Kweichow Moutai. For example, the comprehensive gross profit margin of hyaluronic acid manufacturer Aimeike in 20 19 was 92.63%.

Because the supply of medical devices is the link with the highest added value, the licensed upstream manufacturers have formed their own core barriers, but the medical and beauty institutions in the middle and lower reaches have a hard time. Because the medical and beauty service market is extremely scattered and the industry concentration is low, most institutions are still at a loss.

Guosen Securities' research report pointed out that medical beauty hospitals rely heavily on marketing, and the average cost of "getting customers" is more than 6,000 yuan/person, which directly leads to high gross profit and low net profit in the medical beauty industry.

This view has also been recognized by Shen Dongri, chairman of Langzi Co., Ltd. According to him, in the market value distribution percentage of medical beauty in China, marketing channels account for 40%-50%, sales costs account for 20%, surgical consumables and operating costs each account for 10%, and doctors' share and clinic profits each account for 5%. Take Beijing's marketing as an example, its search bid is 20 yuan/click. According to the calculation of 10000 search clicks per day, the total marketing cost of a medical and beauty institution in January is 7.5 million yuan, and the monthly search bidding fee accounts for 6 million yuan.

At the same time, the influx of a large number of informal medical and beauty institutions has further led to vicious competition in the industry. According to iResearch's Insight White Paper on Medical Beauty Industry in China in 2020, in 20 19, the number of legal institutions with medical beauty qualifications was about 13000, the number of illegal medical beauty institutions operating beyond the scope was about 2000, and the number of illegal medical beauty institutions was about 80000. Only 12% of the industries carry out medical beauty projects legally and legally.

There is also a view that for the medical and beauty industry, which is still in the growth stage, upstream manufacturers rely on their core technologies and licenses to establish core barriers, while middle and downstream institutions are still in the barbaric growth stage, with low concentration and fierce competition. With the tightening of regulatory policies and the improvement of consumers' safety awareness, small and medium-sized medical and beauty institutions will face elimination.

The supervision of frequent medical accidents needs to be strengthened

In the face of huge interest temptation, medical and aesthetic institutions are mixed, which leads to frequent medical accidents, and at the same time exposes many problems such as price confusion, irregular doctor practice, and loan by stages in medical and aesthetic institutions.

Zhang Zihan (a pseudonym), a 20-year-old girl from Hangzhou, suffered a medical accident. Last year, she had liposuction and line carving in a private medical institution in Hangzhou. Due to the doctor's improper method of embedding thread, her cheekbones are prominent and prominent, the middle face is widened, and the whole face looks strange and uncoordinated.

Zhang Zihan is not alone. Thousands of people are disfigured by various accidents every year. According to the data of "White Paper on Insights into Medical Beauty Industry in China in 2020", on average, about 654.38+million people are disabled and die every year due to illegal medical beauty, accounting for 66.7% of illegal injections, and the number of illegal employees exceeds 654.38+million. More than 80,000 life beauty shops illegally carry out medical beauty projects.

According to the data of Tianyancha Professional Edition, among the 35,000 medical and beauty-related enterprises in China, more than 3,600 were subject to administrative punishment, and 30% of them were subject to administrative punishment three times or more. Specifically, among the more than 6,200 administrative punishments received by medical and beauty-related enterprises, nearly 2,000 cases involved "publishing false advertisements and false propaganda", more than 200 cases involved "engaging in diagnosis and treatment activities beyond the registered scope", and 140 cases involved "using non-health technicians to engage in medical and health technical work".

Tian Yahua pointed out that at present, apart from doctors and nurses, most medical beauty practitioners belong to three occupations, including consulting, marketing and service. , which is beyond the scope of state control, has problems such as "nonstandard technical quality, nonstandard service behavior and poor professional skills".

In Tian Yahua's view, many problems in the terminal medical and beauty industry are caused by the extreme shortage of professionals, the lagging industry standards, and the inability of regulatory measures to follow up in time. He suggested that in view of the unprofessional problem of professionals, the industry and relevant departments should jointly promote the legalization of professional posts through standardized training and certification, formulate national vocational skills standards for medical and aesthetic industries, carry out research on medical and aesthetic disciplines, publish relevant teaching materials, and gradually realize the compliance and legalization of employees through education and training.

Shi Lichen pointed out that the development of domestic medical and beauty industry is still a long and arduous road. Faced with the chaos in the medical and beauty industry, the healthy development of the industry cannot be separated from effective governance and rectification. Only medical and aesthetic institutions with perfect operation and management system, higher medical qualifications and more medical talents can achieve better development in the future.