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1、Men of Insight See the Trend,while Men of Wisdom Ride itChina Medical Aesthetic Industry Outlook 2023May 20232PrefaceThe year 2022 is set to be a remarkable one for medical aesthetics and could have a profound impact on the industry as a whole.As a company deeply involved in medical aesthetics,Aller
2、gan Aesthetics not only continues to innovate and promote the healthy development of the industry,but also closely monitors the subtle changes.In 2023,Allergan Aesthetics has again collaborated with Deloitte Consulting to publish“China Medical Aesthetic Industry Outlook 2023,”providing insights from
3、 the dimension of the status quo and outlook,consumption trends,and city portraits.With the haze of the pandemic gradually dissipating and several favorable measures implemented,driven by the growing market size and demand,Allergan Aesthetics still maintains a positive view on the rapid development
4、of Chinas medical aesthetics.Allergen Aesthetics is committed to our mission and responsibility to facilitate the promising development of Chinas medical aesthetic market.Allergan Aesthetics hopes to dedicate this report to all aspiring medical aesthetic colleagues and thus promotes the development
5、in a cooperativemanner.In post-epidemic era,the Chinese government has taken measures to promote consumption and economic growth,emphasizing high-quality development of the healthcare industry.In line with the national development trend,Deloitte Consulting has long been focusing on the consumer heal
6、thcare sector with timely monitor and hopes to promote the healthy and sustainable development of the industry.To further grasp the pulse of industry,Deloitte Consulting and Allergan Aesthetics have partnered again to launch“China Medical Aesthetic Industry Outlook 2023”with upgrading resource inves
7、tment.On top of last years report,this report expands the depth and breadth of the research coverage,focuses on changes in institutional operation,channel,and consumption trends,it is found that institutions pay more attention to profitability and product safety while consumers are pursing more pers
8、onalized and lean concepts,providing insights into the future development of medical aesthetic market.We hope this report will bring forth the new ideas and facilitate the industrys benign and high-quality development.Carrie XiaoDeloitte Consulting China Life Sciences Industry LeaderEthan QiuAllerga
9、n Aesthetics ChinaGeneral ManagerExecutive SummaryThis report provides insights on China medical aesthetics market outlook,consumption trends and insights into the operational status of institutions,and city portraits based on primary research and surveys conducted with 2,000+consumers and 600+medic
10、al aesthetic institutions2023 is the transformative year for China to emerge from the haze of the pandemic,the trend of recovering consumer confidence and willingness to pay is observed in medical aesthetics market as wellChina medical aesthetics market outlookChinas medical aesthetic market(by cons
11、umption)is expected to grow by 20%in 2023,followed by a CAGR of 15%in the next four years owing to the resilience of Chinas economy and the growing demands for medical aesthetics Among the potential consumers 70%have plans for medical aesthetics treatments within 2023,preferring non-surgical treatme
12、nts For the experienced consumers Mature consumers value the effect whereas the young consumers care about the experience;high-end consumers are more selective and value professionalism,on average they visited 4.5 institutions in 2023 For the male consumers They care about the privacy and safety,emp
13、hasize on service environment For consumers with oversea treatment plans among those who have consumed medical aesthetics in 2022 or are willing to consume in 2023,16%have plans for oversea treatments,with Hong Kong,Macau,Taiwan,Japan,and South Korea being the top pick,and preferred treatments mainl
14、y on surgical,hyaluronic acid injection and tightening/anti-aging photoelectric treatments11 cities with high medical aesthetics business activity level are investigated,regulation strengthening is a shared pattern for all however each city also presents distinct characteristics in market maturity,i
15、nstitutions competition level and ages,consumers spending level and preferred service types,etc.Consumption trends and institutional insightsCity portraits2023 Outlook for the Chinese Medical Aesthetic MarketChapter 1AbstractOwing to the resilience of Chinas economy,consumer confidence has gradually
16、 revived.In medical aesthetics,consumers pursuit of self-improvement,continuous technological innovation,and the diversification of consumer groups are fueling the market.However,benign development still requires improvements in the stable supply of professional practitioners,continuous promotion of
17、 consumer education,and consolidation of complianceAllergan Aesthetics and Deloitte Consulting conducted extensive desk research and multiple in-depth interviews on various topics with influential practitioners.This section provides a review of the medical aesthetic markets performance in 2022 and p
18、reliminary discussion of the sectors key drivers and challenges,presenting the status quo and development trends across multiple dimensionsChinas consumer market went on a 3-year roller-coaster ride during the pandemic6Due to the influence of pandemic prevention and control measures and a peak in in
19、fections,growth in total retail sales and the consumer confidence index reached low points in 2022 2020:Pandemic outbreak2021:Normalized prevention2022:Lockdown&relaxationEconomic activity and consumer demand was suppressed:GDP growth reached just 2%Growth in total retail sales of consumer goods fel
20、l to 4%With the pandemic somewhat under control and normalized prevention measures,economic activity and consumer demand were unleashed to some extent:GDP growth rebounded to 8%Total retail sales of consumer goods grew 14%YoY Domestic tourism spending grew 31%YoYDue to pandemic prevention and contro
21、l measures in first three quarters and peak infections in Q4,followed by relaxation of controls,economic activity slowed again and consumer confidence took a hit:GDP growth dropped to 3%Growth in total retail sales of consumer goods shrank and consumer confidence dipped to a 10-year lowGrowth in tot
22、al retail sales of consumer goods YoY,and the consumer confidence indexData source:National Bureau of Statistics123 122116 62125122 8 087898887878688-30-20-50607080900-3%-21%-8%JulJan-FebJan-FebMarJul-16%Apr May-11%4%May-2%
23、JunJulOctDec1%Aug7%3%Sep-7%4%Oct-6%5%Nov5%34%34%Apr12%Mar3%12%18%Apr3%Jun9%3%Aug4%Sep3%5%Oct-1%NovMar2%SepDec-4%MayJan-Feb5%Aug-1%Nov-2%Dec87JunConsumer confidence indexGrowth in total retail sales of consumer goods YoYConsumer Confidence IndexGrowth in total retail sales of consumer goods%202020212
24、0227Policy:expand domestic demand&boost consumption GDP growth expected to reach 5%The World Economic Situation and Prospects 2023 report released by the United Nations raises Chinas economic growth forecast to 5.3%in 2023,up from 4.8%forecast earlier in the yearOwing to the slowdown of the epidemic
25、,the restoration of consumption contexts,and Spring Festival,some pent-up consumer demand was released quicklyQ1 2023:As consumer activity and its radius increased,market sentiment was enhanced and total retail sales grew,driving positive consumption momentumConsumptionTransportationGrowth in total
26、retail sales of consumer goods:+4%Jan-Feb 202394.7Feb 2023Consumer confidence index:Railway passenger traffic:+37.9%YoY growth(Jan-Feb 2023)Civil aviation passenger traffic:+36.5%Metro passenger traffic:+7.9%Following the spontaneous post-pandemic recovery,the implementation of policies to boost dom
27、estic demand will enhance the confidence of market participants and help drive steady economic growth in 2023 Key tasksEnhance consumption power Improve consumption conditionsCreate innovative contextsOct 2022:20th CPC National Congress ReportDec 2022:CPC Central Committee,State Council:Outline of t
28、he strategic plan for expanding domestic demandCentral Economic Working Conference“Focus on expanding domestic demand,prioritizing the recovery and expansion of consumption”Total retail sales of consumer goods expected to grow by 11%The Financial Times estimates that Chinas total retail sales of con
29、sumer goods will reach RMB50 trillion,with a growth rate of 11%,citing forecasts from CitibankWith the end of pandemic prevention,the consumer market has exhibited positive signs in 2023Q1:Concentrated release of pent-up consumer demandConsidering the post-pandemic recovery&policy drivers,many forec
30、asts are optimistic for 2023Data source:National Bureau of Statistics,Institute of Economics at Chinese Academy of Social SciencesNote:All growth rate numbers mentioned are calculated in RMBDriven by favorable policies,the Chinese economy is expected achieve endogenous economic development 805001,00
31、01,5002,0002,5003,0003,5004,000202232025202420270%+20%+15%Chinese medical aesthetic market size and growth rate forecast(consumption)Unit:RMB 100 million Chinese medical aesthetic market segmentation and growth rate forecast(consumption)CAGR in the next 5 years20%30%Consumers are more lik
32、ely to accept non-invasive treatment Institutions tend to require less investment in talent as the barrier to operations is relatively low Better customer stickiness with more treatment periods More treatment options affect customer unit priceDue to the impact of the pandemic control measures and hi
33、gh infection rate at the end of 2022,consumers shopping visit frequency and unit prices fell sharply,resulting in stagnation of the Chinese medical aesthetic market size in 2022,within which surgical treatments had a greater impactIn 2023,the overall medical aesthetic market is expected to grow by 2
34、0%as a result of the post-pandemic consumption recovery,followed by a CAGR of 15%in the next four yearsChinas medical aesthetic market is expected to grow by 20%in 2023,recovering from stagnationFactorsData source:Expert Interviews,Allergan Aesthetics and Deloitte Consulting Analysis9%47%44%2022Inje
35、ctionPhotoelectric relatedOthers48%52%Surgical2022Non-surgical20%30%Stronger treatment effect,satisfying high-level demand from mature consumers Higher requirements for physicians abilities Increased unit pricesDriven by growing demand for medical aesthetics,the Chinese medical aesthetic market is e
36、xpected to reach a market size of RMB200 billion by 2023 in terms of consumption9Growth driversKey drivers and challenges in Chinas medical aesthetic marketAs consumption recovers and disposable income increases in the post-pandemic era,demand for quality consumption and self-improvement continues t
37、o boost peoples willingness to spend on medical aestheticsNew innovative iterations of products and technologies,along with the expansion of indications of existing products,continue to fulfill and explore consumers ever evolving and diversifying demand for medical aesthetics The relatively low pene
38、tration rate will gradually increase as the growth potential of diverse consumer groups is unleashedChallengesInsufficient supply of professional medical aesthetic practitionersLack of sufficient formal consumer education around choosing appropriate institutions and treatments;consumer demand not me
39、t with the right guidanceNeed to improve the compliance status of the medical aesthetic market and servicesThere is a degree of mismatch between consumers growing demand for medical aesthetics and current levels of market supply and education1020219.5%10.7%2022Annual spendingRMB50,0006.3%7.7%Aged36-
40、4020212022Willingness to spend on medical aesthetics(Annual spending on medical aesthetics as a proportion of household income)Overall willingness to spend on medical aesthetics remains steadyAmong consumers who spend RMB50,000 annually and those aged 36-40,willingness to spend has increased sharply
41、,even with the impact of the pandemic Per capita disposable income of urban residents in China20214.94.4200223.64.73.94.22020+35%The per capita disposable income of Chinas urban residents continues to increase with the CAGR of 35%from 2017 to 2022,indicating the increasing consumption pow
42、er and highlighting the huge potential of Chinas consumer marketKey drivers of Chinas medical aesthetic industry(1/3)As Chinese citizens spending power has continued to grow,their willingness to pay for medical aesthetic products and services has increased steadilyData source:National Bureau of Stat
43、istics,Allergan Aesthetics and Deloitte Consulting Consumer Survey Disposable income is increasing steadilyPeople are more willing to pay for medical aestheticsUnit:RMB 10,00011CleansingWhitening&RejuvenationInjection&FillingAnti-wrinkles&Anti-agingPlastic SurgeryOrthodonticsHair TransplantationCons
44、umer demands for medical aestheticsCompared to previous research,consumers have broadened their attention to their bodies,teeth,and hair,instead of focusing solely on their facesDemands for medical aesthetics have become more diverse and comprehensiveIn The Future of Aesthetics global trends report,
45、Allergan Aesthetics suggests the world has entered the era of vibrant aestheticsA collision of culture and consumer trends has created conditions for achieving exponential growth in the medical aesthetic marketInstitutions have transformed from product-centric to effect-centric,designing treatments
46、to fully satisfy consumers demands for effectConsumers:More likely to acceptPhysicians:More concrete expected effectAdvisor:Lower communication and education costBenefits of effect-centric treatment Continuously developing new products or indications to positively guide consumers demands,making cons
47、umer education more standardized,helping promote a healthy marketExample:Hyaluronic acid injectionSingle indicationMultiple indicationsApproved area:nasolabial sulcusApproved area:nasolabial sulcus,cheeks,lips,nose,and jaw,etc.Key drivers of Chinas medical aesthetic industry(2/3)Strong,diversified d
48、emandsThe development of consumption trends has reshaped the marketConsumer-centric treatment design&developmentMedical aesthetic institutionsMedical aesthetic manufacturersData source:Allergan Aesthetics and Deloitte Consulting Consumer Survey,Allergan Aesthetics The Future of Aesthetics Global Tre
49、nds ReportDiversified consumer demands and continuous exploration of products from institutions and manufacturers now triggers for growth12Medical aesthetic treatments per 1,000 people in China,Japan,Brazil,the United States,and South Korea in 2019 and 2020 Compared to 17 treatments per 1,000 people
50、 receiving medical aesthetic treatments in China in 2019,the size of the reachable population has increased,especially under the influence of the pandemic,demonstrating great resilience Comparing medical aesthetic treatments per 1,000 people,countries where the industry is well developed,including B
51、razil,the US,and Korea used to have at least three times Chinas treatment volume,but the gap has gradually decreased,indicating large room for improvement and potential in the futurePenetration rate has great potentialUnit:Medical aesthetic treatments per 1,000 peopleGrasp diverse reachable populati
52、ons and further increase penetration rateDriven by the beauty economy,awareness of pursuing beauty has increased for consumers of different ages and genders,empowering demand for medical aesthetic treatments,which should boost the penetration rate and overall development of medical aestheticsKey dri
53、vers of Chinas medical aesthetic industry(3/3)Data source:Frost&Sullivan,Allergan Aesthetics and Deloitte Consulting Analysis126434882BrazilChinaJapanUSKorea20192020Beauty economy boosts willingness to experience medical aesthetic treatments,which could power further improvements in penet
54、ration rates and industry developmentNote:“Sinking market”refers to 3rd-,4th-,and 5th-tier citiesEfficiently capture sinking market*opportunities and improve the popularity of medical aesthetic treatmentsWith the rapid development of Chinese medical aesthetics,social views have transformed,driving o
55、verall acceptance.This is expected to increase the popularity and further promote medical aesthetic development by capturing sinking market opportunitiesNumber of plastic surgery physicians per 100,000 population in 202113As of 2021,there continues to be a substantial gap between the number of plast
56、ic surgery physicians in the Chinese Mainland and mature medical aesthetic marketsAs of 2021,China has less than one tenth the number of plastic surgery physicians there are in Japan,the United States,and South Korea5.12.82.32.22.01.90.2BrazilGermanyKoreaUSJapanItalyChinese MainlandLengthy developme
57、nt of medical aesthetic physiciansHigh barriers to cross departmental transformationHigh requirements for comprehensive abilitiesEven during the pandemic in 2022,there was a net increase of more than 400 medical aesthetic institutions in ChinaHowever,it requires more than eight years of training and
58、 practice to become a qualified medical aesthetic physician,limiting the increase in the number of physicians and creating a supply-demand mismatchThe technical requirements for medical aesthetic physicians and other doctors are not compatibleIn addition to a solid surgical foundation to cope with c
59、omplex situations such as blood vessel and nerve issues,continuous learning is required to strengthen understanding of human anatomy and comprehensive knowledgeThe medical aesthetic industry has wide treatment coverage,indicating high and comprehensive requirements for medical aesthetic physiciansIn
60、 addition to treatment skills,medical aesthetic physicians need to refine their abilities in communication,aesthetics,and marketing,etc.Challenges in Chinas medical aesthetic industry(1/3)Chinese medical aesthetic market faces the problem of high demand but a shortage of sufficient supply of qualifi
61、ed professionals,hindering the industrys long-term developmentHuge shortage of medical aesthetic professionalsDifficulties in cultivating qualified professionalsData source:ISAPS International Survey 2021,QiChaCha14Select proper institutionsWhereAppropriate treatment arrangementHigh cost-effectivene
62、ss32%Institutions reputationPhysicians professionalism36%Trendy aesthetics/stylishGood service and experience28%11%6%0%Considerations in institution selectionInstitutions reputation and qualifications and physicians professionalism are the top considerationsPotential consumers are less able than exp
63、erienced ones to judge whether treatment arrangements are appropriate33%30%40%64%31%28%Potential ConsumerExperienced ConsumerTop 2 reasons for selection:High safety levelSuitable for needsTop 2 platforms for treatment comparison:RedMedical aesthetic-centric apps:e.g.,SoYoungMedical aesthetic consume
64、rs tend to self-educate through the internet,where applications including Red and SoYoung have become the go-to platforms for understanding and comparing treatmentsConsumers value safety when selecting treatmentSelect proper physiciansWhoSelect proper treatmentsWhatSelect proper treatment plansHowCh
65、allenges in Chinas medical aesthetic industry(2/3)In terms of institution selection:In terms of treatment selection:It is essential to provide correct guidance&educationData source:Allergan Aesthetics and Deloitte Consulting Consumer Survey Consumers value professionalism&authorityMost consumers sel
66、f-educate through the internetConsumers have inadequate guidance on decision-making including institution and treatment selection due to lack of formal educationOnline PlatformRed:Launched a special campaign for medical aesthetic-related content and disposed of illegal notes and accountsTikTok:relea
67、sed Announcement on Adjusting Product Sharing Function of Medical and Health Certification CreatorsIndustry AssociationsChinese Association of Plastic Surgery collaborates with Allergan Aesthetics to carry out the first batch of pilot work on“scanning codes for authenticity verification”in medical a
68、esthetic institutionsMore brands and manufacturers join the pilot workChinese Association of Plastic Surgery:Release of 2022 Guidelines for Standardized Operation of Medical Beauty InstitutionsBrands&ManufacturersChallenges in Chinas medical aesthetic industry(3/3)Summary of main policies released i
69、n 2022Under policy guidance,strengthening self-discipline has become the main themeStrengthen self-discipline and reputation to promote standardizationData source:Desk Research,Allergan Aesthetics and Deloitte Consulting AnalysisApril:The State Council released the Regulations on the Management of M
70、edical Institutions(revised in 2022)May:Notice on Issuing the Key Points for Correcting Unhealthy Practices in the Field of Pharmaceutical Purchase and Sales and Medical Services in 2022 by 9 national departmentsInstitution ManagementAdvertisement&PromotionOctober:Administration of Market Regulation
71、 published Guidelines for the Treatment of False Propaganda and Price Violations in Medical Aesthetic IndustryOctober:7 departments including Administration of Market Regulation released the Guiding Opinions on Further Regulating Celebrity Advertising Endorsement ActivitiesProduct ManagementMarch:An
72、nouncement on Adjusting the Classification Catalogue of Medical Devices by Medical Products Administration BureauOctober:Summary of the Third Medical Device Classification and Definition Results by Medical Products Administration BureauNovember:Management Categories of Medical Sodium Hyaluronic Acid
73、 Products by Medical Products Administration BureauMore departments(including the Ministry of Finance,State Administration of Taxation,and Supreme Court,etc.)havejoined and participated in governance and rectification in the medical aesthetic industryComprehensive supervision accelerates industry st
74、andardization15Number of administrative penalties in the medical aesthetic industry(2017-2022)16From 2017 to 2022,8,068medical aesthetic institutions had their business licenses revokedFrom 2017 to 2022,the number of administrative penalties in the medical aesthetic industry increased by 388%From 20
75、17 to 2022,the number of adjudicative documents in the medical aesthetic industry increased by 137%Public institutions 1,863Private institutions 18,3731,1085,40720222017+388%21,82651,71120172022+137%91.7%8.3%Distribution of medical aesthetic institutions(2022)Proportion of medical aesthetic institut
76、ions with revoked licenses(2022)Number of adjudicative documents in the medical aesthetic industry(2017-2022)Rectification of illegal medical aesthetic institutionsAdministrative penalties&legal judgmentsThe medical aesthetic industry has entered the era of heavy regulation,making compliance managem
77、ent imperative Challenges in Chinas medical aesthetic industry(3/3)Data source:Data from QiXinBao and QiChaCha as of 12 December 2022,China Judgements Online,CN-HealthcareMedical Aesthetic Consumption Trends in China and Insights into the Operational Status of Institutions17Chapter 2AbstractAs the b
78、eauty economy continues to gain momentum,profound insights into the profiles,behavioral trends,and characteristics of various medical aesthetic consumer groups can support industry practitioners to identify target consumers and capture their needs precisely.This enables them to develop unique,differ
79、entiated competitive advantage by enhancing agile management and service provision to optimize their service portfolios and improve channel layout19Medical Aesthetic Consumption Trends in ChinaRespondents consumption experiences(n=2177)The report surveyed 2,177 consumers in March 2023 33%of responde
80、nts are potential consumers with no medical aesthetic experience.The others all have various levels of medical aesthetic experienceNumber and distribution of institutions surveyed(n=635)20Research backgroundThis report surveyed more than 2,000 consumers and over 600 medical aesthetic institutionsDat
81、a source:Allergan Aesthetics and Deloitte Consulting Consumer/InstitutionSurvey;City leveladoptsCCCI methods,where broadly-defined 1st-tier cities include Beijing,Shanghai,Guangzhou,Chengdu,Hangzhou,Shenzhen,Wuhan,Nanjing,Xian,Chongqing,Suzhou,Shenyang,Tianjin,Foshan,and Dongguan The report surveyed
82、 635 medical aesthetic institutions across more than 100 cities in China 57%are in broadly-defined 1st-tier cities*41%5%33%21%No medical aesthetic experienceAnnual consumption more than RMB50kAnnual consumption less than RMB10kAnnual consumption of RMB10k-RMB50k3651775724125th-tier cities&below4th-t
83、ier cities2nd-tier cities1st-tier cities3rd-tier cities85703428262597ShanghaiHangzhouBeijingGuangzhouChengduShenzhenOther 1st-tier cities21High-end consumersConsumption has become more selective rather than downgradedTrend01Trend02Trend03Trend04Trend05Mature vs.Young consumersMature:reputation and q
84、uality-drivenYoung:experience-drivenPotential consumersStrong potential for development,emphasizing trust and connectionMaleconsumersPotential consumers driven by basic needs;experienced consumers have diverse demandsOverseas TreatmentsMostly young people,and the main sites for treatment are still i
85、n ChinaFive trends in medical aesthetic consumption22High-end consumersAgeIncome&medical aesthetic spendingMarriage|Education|Occupation The average age of high-end medical aesthetic consumers is 34 Among high-end consumers,nearly 70%are above the age of 30Age distribution The average household inco
86、me of high-end consumers is about RMB820k.90%have a household income greater than RMB120k On average,high-end consumers spent about RMB94k on medical aesthetics in 2022,accounting for 11%of household income Annual household income distribution SOEs/central enterprises/public institutionsPrivate ente
87、rprisesFreelanceAmong high-end medical aesthetic consumers:79%have a bachelors degree or above 59%are married and 52%have childrenAmong high-end consumers,the top employers are private enterprises,SOEs/central enterprises/public institutions,and freelanceTop 3 types of employment 59%52%79%Below 25 y
88、ears old41-50 years old26-30 years old31-35 years old8%36-40 years old24%7%Above 50 years old30%28%3%Portrait of high-end consumersDefinition:High-end consumers are those whose actual spending on medical aesthetics in 2022 exceeded RMB50,000Bachelors degreeor aboveMarriedHave children27%RMB600kRMB12
89、0kRMB360k-600kRMB120k-360k10%28%35%Data source:Allergan Aesthetics and Deloitte Consulting Consumer SurveyNational and high-end consumer price index(2016-2021)23Stable consumption from high-end consumers The consumption level of high-end consumers is less affected by the pandemic:the consumer price
90、index of high-end consumers(LCPI)*in 2019-2021 is higher than the national consumer price index(CPI),indicating strong consumption stability and their emphasis on high-quality lifestyleSteady increasing consumption on medical aesthetics High-end consumers have stronger and more stable consumption on
91、 self-indulgence,including medical aesthetics:according to the survey,over 60%of high-end consumers indicate their willingness to maintain or increase their spending on medical aesthetics in 2023Medical aesthetic consumption plan for high-end consumers in 2023Spending by high-end consumers has incre
92、ased steadily,favor investing in self-indulgenceGrasping high-end consumer group and enhancing brand influence can help medical aesthetic institutions resist external risks and stabilize sales growthNote:The high-end consumer price index is based on Hurun High Net Worth Consumer Price Index(LCPI),co
93、vering 10 lifestyle categories such as property,health,luxury travel,accessories and skincare,with prices of 121 items related to high quality lifestyles,comparing price changes from the previous yearData source:National Bureau of Statistics,Desk Research,Allergan Aesthetics and Deloitte Consulting
94、Consumer Survey5.13.64.12.73.44.41.91.51.91.70.92001920202021-0.3Consumer Price Index of High-End Consumers(LCPI)National Consumer Price Index(CPI)62%38%Willing to maintain or increase spendingPlan to cut spendingHigh-end consumers24Visit 4.5 institutions on average,value professionalism
95、and effectPrefer injections/photoelectric treatments,believe in professionalismSelective on institutionsSelective on treatments2.4 4.14.5Average number of institutions visited in 2022 Rapid development and intense competition in the medical aesthetic market provides consumers with more options High-
96、end consumers value professionalism and effect more than other groups do when selecting institutionsTop 5 reasons for switching institutions Among high-end consumers,70%are aged above 30,indicating high demand for anti-aging treatments High-end consumers are less price sensitive,but believe in doing
97、 their own research and receiving advice from expertsTop preferred treatmentsTop 3 reasons for selecting treatments(high-end group)Top 3 reasons for selecting treatments(others)High-end groups are knowledgeable and selective,value professionalismProviding professional,effective,and high-quality serv
98、ices can help institutions retain high-end groupsNotes:High-end groups include people who spent more than RMB50k on medical aesthetics in 202238%Unspecific advice28%Long waiting period30%Unprofessional physiciansUnsatisfactory treatment effectPoor environment23%21%Pay more attention to these issues
99、than other groups doAnnual spending on medical aestheticsRMB50kInjections25%Photoelectric54%32%14%High-end consumersOthersTop pick:Hyaluronic AcidTop pick:Tightening/Anti-aging photoelectric treatmentsTop 1Own researchTop 2Advice from expertsTop 3SafetyTop 1Own researchTop 2SafetyTop 3Cheaper priceD
100、ata source:Allergan Aesthetics and Deloitte Consulting Consumer SurveyHigh-end consumersAnnual household income distribution of mature/young consumers25Income&medical aesthetic spendingMarriage|Education|Occupation Mature consumersAverage household income of RMB506kSpending on medical aesthetics in
101、2022 of around RMB30kPrivate enterprisesAmong mature consumers:73%have a bachelors degree or above73%are married and 67%have childrenTop 3 types of employment of mature consumers73%73%67%Full-time homemakingPrivate enterprisesForeign enterprises38%30%74%Portrait of mature and young consumersDefiniti
102、on:Mature consumers are those over 30 years old and young consumers are those under 30Mature vs.Young29%RMB360k-600kRMB600k17%47%32%11%10%MatureYoung Young consumersAverage household income of RMB313kSpending on medical aesthetics in 2022 of around RMB16kSOEs/central enterprises/public institutionsS
103、OEs/central enterprises/public institutionsTop 3 types of employment of young consumersAmong mature consumers,the top employers are private enterprises,SOEs/central enterprises/public institutions,and full-time homemakingAmong young consumers,the top employers are private enterprises,SOEs/central en
104、terprises/public institutions,and foreign enterprisesAmong young consumers:74%have a bachelors degree or above38%are married and 30%have childrenBachelors degreeor aboveMarriedHave childrenBachelors degreeor aboveMarriedHave childrenData source:Allergan Aesthetics and Deloitte Consulting Consumer Su
105、rvey26High&stable consumption of medical aestheticsMedical Aesthetic Consumption Average annual medical aesthetic spending of RMB30k 50%of mature consumers have annual spending of RMB10k-RMB50k Willingness to consume tends to increase among consumers aged 35 or above,of which 23%have annual spending
106、 above RMB50k 62%of mature consumers aged above 40 are far less price sensitive and more willing to maintain or increase medical aesthetic spending Consumers of all age groups prefer conducting research themselves before selection to ensure treatment effect and safety Mature consumers value advice f
107、rom experts more when making decisionsWilling to try new products,prefer surgery,cleansing&injection Treatment SelectionToppreferred treatmentsValue efficiency&effects,professionalism,&careInstitution SelectionMature medical aesthetic consumers tend to value professionalism and quality moreMature co
108、nsumers have higher expectations for treatments based on their past experiences and tend to have stronger demands for anti-aging projectsMature vs.YoungReasons for switching institutionsTop 1InjectionTop 2CleansingTop 3PhotoelectricTop pick:Tightening/Anti-aging photoelectric treatmentsTop pick:Meso
109、therapy,hyaluronic acid Mature consumers have much higher requirements for treatment effects than younger groups do,and still have high requirements for appointment waiting time Mature consumers value physicians professionalism more and have higher requirements for timely care and post-treatment fol
110、low-upTop 1Unspecific adviceTop 2Long waiting periodsTop 3Unprofessional physiciansTop 4Delayed follow-up after treatmentsTop 5Unsatisfactory treatment effectPay more attention to these issues than young consumers doData source:Allergan Aesthetics and Deloitte Consulting Consumer Survey27Willing to
111、increase consumption on medical aestheticsMedical Aesthetic Consumption 56%of surveyed consumers are under the age of 30 26%of Generation Z consumers(under 25 years old)are male Average annual medical aesthetic spending is RMB16k 70%of young medical aesthetic consumers have an annual medical aesthet
112、ic consumption of less than RMB10k 29%of Generation Z plan to increase medical aesthetic expenses or try more treatments in 2023,higher than the average(23%)Young medical aesthetic consumers pay more attention to cost-effectiveness and discounts,in addition to safety concerns For consumers willing t
113、o try new products,89%are aged below 30Willing to try new products,prefer surgery,cleansing&injection Treatment SelectionToppreferred treatmentsValue tonality&experienceInstitution Selection3.24Average number of institutions visited in 2022Young medical aesthetic consumers tend to value pleasing the
114、mselves and experiences highlyYoung medical aesthetic consumers willingness to consume has increased steadily,and they pay more attention to an institutions tonality and experienceMature vs.YoungTop 1SurgicalTop 2CleansingTop 3InjectionTop pick:Facial(eyes,nose,lips,etc.)Top pick:Mesotherapy,hyaluro
115、nic acidTop 1Unspecific adviceTop 2Long waiting periodsTop 3Poor environmentTop 4Lack of communication during treatmentTop 5Unprofessional physiciansPay more attention to these issues than mature consumers doAverageGen Z consumersReasons for switching institutions Among all age groups,advice before
116、treatment and long waiting periods are the main reasons for switching institutions Young consumers value institutions tonality and experience more:a poor environment and experience during treatment can cause them to switch institutionsData source:Allergan Aesthetics and Deloitte Consulting Consumer
117、Survey28Age distributionAnnual household income distribution Top 3 types of employment 31%21%96%Private enterprisesFull-time homemakingForeign enterprisesPotential consumersPortrait of potential consumersDefinition:Potential consumers are those with no medical aesthetic consumption in 2022AgeIncome&
118、medical aesthetic spendingMarriage|Education|Occupation The average age of potential consumers is around 28 years old 75%of potential consumers are aged below 3041-50 years oldBelow 25 years old26-30 years old44%31-35 years old32%36-40 years oldAbove 50 years old15%7%3%0%16%RMB600kRMB30kRMB600k19%RM
119、B360k-600kRMB120k19%RMB120k-360k20%42%Bachelors degreeor aboveMarriedHave childrenAmong male consumers,the top employers are foreign enterprises,private enterprises,and SOEs/central enterprises/publicData source:Allergan Aesthetics and Deloitte Consulting Consumer SurveyTop 3 preferred types32The pr
120、oportion of male medical aesthetics consumers has increased Male medical aesthetic consumers accounted for 18%of those surveyed,more than in the 2021 survey(13%)The average age of male consumers surveyed was older than that of women The percentage of male consumers that are married has reached 51%,w
121、hereas the number for females is 35%Compared with female consumers,males care more about institution environment and treatment privacy and are more sensitive to over-promotion and information overflow Male consumers tend to be less sensitive than females are to practitioner professionalism and appoi
122、ntment experienceEmphasize privacy°ree of promotionInstitution SelectionTop 5 reasons for switching institutionsPrefer entry-level non-surgical treatmentsTreatment SelectionPreferred treatmentsMale consumersMale consumers mainly focus on non-surgical treatments and tend to care more about privacy
123、It is crucial for institutions to understand male consumers differentiated requirements in treatment environment and communication style and enhance market education to unlock the potential of anti-aging programs for men Poor privacy32%Unspecific adviceUnprofessional physicianOver promotionLong wait
124、ing period38%37%23%22%Emphasize these factors more than female consumers do No substantial gender difference in terms of treatment category preference As entry-level non-surgical medical aesthetic treatments,botulinum toxin injection,aqua lifting,and photoelectric skincare have the highest penetrati
125、on rate among male consumers;penetration of anti-aging treatments can be further improved57%InjectionPhotoeletrics74%Cleansing56%No.1 Skin rejuvenation/Whitening photoelectric treatmentsNo.1 Botulinum toxin/aqua lifting(tied)Data source:Allergan Aesthetics and Deloitte Consulting Consumer SurveyPerc
126、entage of potential male consumers who plan to try in 202333More than 60%of males have plans for treatment Among males surveyed,64%plan to spend on medical aesthetics in 2023 Aside from functional treatments(e.g.,orthodontics,hair transplantation),male consumers focus more on cleansing,body&facial s
127、urgeries Unlike female consumers,males pay less attention to injections and photoelectric Male consumers put safety first and will consider their own research and expert recommendationsMainly on rigid demand and cleansing;market education required Treatment FocusTop 10 most preferred treatments amon
128、g potential consumersMale consumersMale potential consumers show strong willingness to try,emphasizingbasic needs and safetyThere is still substantial room for improvement in male medical aesthetic education on skin enhancing and anti-aging3%Male3%21%10%Orthodontics24%5%Cleansing14%6%20%6%13%Hair tr
129、ansplantation9%Facial surgery4%Body surgery6%MesotherapySkin rejuvenation/lightening15%5%Anti-wrinkle/anti-aging6%5%Medical aesthetic skincare products2%3%Anti-wrinkle/anti-agingFemaleData source:Allergan Aesthetics and Deloitte Consulting Consumer Survey64%Percentage of consumers that have overseas
130、 medical aesthetic plans34 Among those who have consumed medical aesthetics in 2022 or are willing to consume in 2023,16%plan to pursue treatments overseas in 2023 By analyzing the personas of consumers with overseas medical aesthetic plans,we found they share characteristics including being young,l
131、oving experiences,being willing to try new things,and having previous medical aesthetic experienceRelatively small percentage of consumers have overseas medical aesthetic plans Consumers with overseas treatment plans have distinct characteristicsNearly 85%of consumers with overseas medical aesthetic
132、 plans are under the age of 35YoungIn 2022,consumers with overseas medical aesthetic plans visited 3.2 institutions on average,many more than those without overseas plans(1.7 institutions visited on average)Love experiencesMore than 10%of consumers with overseas medical aesthetic plans are willing t
133、o take the initiative to try new treatments once they launch,much more than those without plans to pursue medical aesthetics overseas(1.4%)Willing to try new thingsAmong those who have overseas medical aesthetic plans,95%had medical aesthetic experience in 2022,but the proportion of high-end consume
134、rs is relatively lowHave previous experienceOverseas TreatmentsAlleviation of the pandemic has spurred overseas treatment demand among some consumersConsumers who plan to seek medical aesthetic treatment overseas are typically young,love experiences,are willing to try new things,and have previous ex
135、perience84%16%Do not have overseas medical aesthetic plansHave overseas medical aesthetic plansData source:Allergan Aesthetics and Deloitte Consulting Consumer SurveyPreferred countries/regions 35 Hong Kong,Macau,Taiwan,Japan and South Korea are the most popular sites for consumers with overseas tre
136、atment plans Apart from proximity,Asian institutions and doctors tend to pursue similar aesthetics as Chinese consumers,and are therefore more attractive Medical aesthetic treatments that consumers plan to pursue overseas tend to converge with the treatments they are paying most attention to in 2023
137、 Apart from surgical treatments,hyaluronic acid injection,and tightening or anti-aging photoelectric treatments are popular among consumers with overseas medical aesthetic plansHong Kong,Macau,Taiwan,Japan,&South Korea are the most popular destinationsPopular treatments for overseas medical aestheti
138、c treatment plansPreferred treatment among consumers with oversea plansTop treatments consumers plan to pursue overseasOverseas TreatmentsNeighboring countries/regions and popular treatments attract the most attentionAside from surgical treatments,non-surgical treatments remain highly desirable amon
139、g consumers that have overseas medical aesthetic plansOthersHong Kong,Macau,TaiwanJapan/South KoreaUnited StatesSoutheast AsiaEurope44%41%6%4%3%1%Top 1Body surgeryTop 2Facial surgeryTop 3Aqua liftingTop 4Tightening/anti-agingphotoelectricTop 5Hyaluronic acid injectionTop 1Facial surgeryTop 2Body sur
140、geryTop 3Hyaluronic acid injectionTop 4Tightening/anti-agingphotoelectricTop 5Skin rejuvenation/lightening photoelectricData source:Allergan Aesthetics and Deloitte Consulting Consumer Survey36 High-end consumers prefer public institutions for their physicians Public institutions can hardly satisfy
141、the diverse needs from high-end consumersHigh-end consumersMature vs.Young consumersPotential consumersMale consumersOverseas TreatmentsMature consumers More selective on treatment,prefer anti-aging Highly influenced from acquaintanceYoung consumers Prefer public institutions for surgical repairs Hi
142、ghly influenced from social media High proportion of potential consumers prefer public institutions for treatment consultation Key influencing factors include public institutions have stronger endorsement,and some physicians choose to educate through online platforms Male consumers tend to solve fun
143、ctional demands in public institutions including acne-related treatments,hair transplantation,orthodontics,etc.Public institutions are in leading position in terms of professionalism and abilities Strengthen collaboration with international institutions to grasp the trends and further enhance value
144、managementCharacteristics of medical aesthetics consumption trends in public institutions37Insights into the Operational Status of InstitutionsMain considerations38Institution selectionDesign key-recommended treatments based on distinct advantagesProfessional physiciansInstitution qualifications/hig
145、h reputationTrendy aesthetics/stylishNice service and experiences/high cost-effectiveness/appropriate treatment plansInstitutions may consider their own advantages when designing key-recommended treatment to purposefully attract more consumersInstitutions advantagesKey-recommended treatmentsFilling/
146、body contouring injectionAnti-aging injectionBody surgeryFacial surgerySkin rejuvenation/whitening photoelectricCleansingFilling/body contouring injectionFacial surgeryFacial surgeryBody-contouring photoelectricTightening/Anti-aging photoelectricMesotherapyTightening/Anti-aging photoelectricBody sur
147、geryInstitutions may set appropriate key-recommended projects based on their distinct advantagesConsumers have different expectations of institutions for various treatment projectsData source:Allergan Aesthetics and Deloitte Consulting Consumer SurveyAppropriate treatment plans28%Professional physic
148、iansInstitution qualifications/reputationNice services&experiencesHigh cost-effectivenessTrendy aesthetics/stylish64%40%33%30%31%39Institutions attitude towards new productsConsumers attitude towards new productsMore than half of the institutions have a wait-and-see attitude towards new productsThe
149、main reasons for the greater interest in new products among chain institutions could their broader and more diverse customer bases and the possibility of more economical collection costs,making such institutions more inclined to form differentiated competition by trying new productsOnly 11%of consum
150、ers will be the first to try new productsConsumers above 30 are more cautious about new products,with 24%of consumers only focusing on the mature treatments that they needConsumers under 30 are slightly more willing to try new products,44%of consumers will first check and research information about
151、new productsKey factors that institutions focus on when selecting productsChains are more willing to try new products,but mainly young consumers are being attractedConsumers tend to be more conservative on new productsData source:Allergan Aesthetics and Deloitte Consulting Consumer SurveyKey factors
152、 that consumers focus on when selecting products7%60%64%49%35%30%49%Independent clinics5%ChainsChannel-oriented2%Not too concerned,still focus on deepening their own advantageous projectsVery interested,will be the first to understand and decide whether to introduceContinue to wait and see,hope to h
153、ave more market feedback before making a decision18%24%25%34%44%34%13%8%Under 30Above 30I only choose mature and necessary medical beauty productsI will wait for the market feedback before making a decisionI will check the information about the new product before making a decisionI will be the first
154、 to give it a tryConsumer perception vs.institutional perceptionConsumer perception vs.institutional perception40Why chooseWhy leave Nearly half of the surveyed institutions believe that consumer acquisition/promotional activities is the key pain point While only 10%of consumers choose not to retain
155、 due to promotion-related reasons Consumers value more on physicians professionalism and treatment efficacy,however institutions often put more effort on building physician IP Consumers are primarily attracted by physicians professionalism,and institutions qualifications However,75%of consumers are
156、disappointed and choose not to retain due to poor service experienceConsumers are attracted by professionalism and qualifications,but are disappointed by serviceConsumer retention is greatly influenced by service experience and should be given more attention by institutionsData source:Allergan Aesth
157、etics and Deloitte Consulting Consumer Survey40%Physician/Treatment16%Institutions qualificationService experience22%18%22%10%Consumer perceptionInstitutional perception24%10%75%Service experiencePhysician/Treatment10%Marketing/Promotion14%44%Consumer perceptionInstitutional perception41 Well-known
158、physicians often have high reputation and consumer satisfaction But this is not solely the result of building physician IPConsumers perception on physiciansprofessionalismPhysicians reputationPhysicians skills&abilities(treatmentrelated,communications,etc.)The physicians professionalism that consume
159、rs perceived is also related to their skills and abilities in treatment and communications,etc.This requires physicians to be consumer-centric:understand their motivations for treatments,and thus turn consumers core demands into optimum outcomes4 archetypes of Chinese medical aesthetics consumersMis
160、matches exist between expectations on professionalism and building physician IPConsumer-centric:Understand consumers motivation for treatment,and turn consumers demands into optimum outcomes Data source:Allergan Aesthetics and Deloitte Consulting Consumer Survey,Allergan Aesthetics GOING BEYOND BEAU
161、TY:Understanding and treating different patient archetypes in aesthetic medicineMost common cross-industry activities held by institutions vs.distribution of consumers interests42Precise cross-industry collaboration may help institutions build trustEveryday activities centered around weight loss and
162、 toning such as“fitness”and“yoga/dancing”are the key interests of medical aesthetic consumersMedical aesthetic institutions can accelerate forming connections between facial beauty and body contouring,creating a well-rounded closed-loop of consumer medical aesthetic needs Mismatch exists in cross-in
163、dustry collaborationClose to38%of medical aesthetic institutions use“flower arranging”as their most common cross-industry activityBut only 1%of consumers surveyed expressed interest in“flower arranging”Strong sense of selling is one of the most mentioned pain pointsInstitutions need to position them
164、selves accurately in consumers areas of interest to achieve spiritual connections and resonanceData source:Allergan Aesthetics and Deloitte Consulting Consumer Survey41%37%13%24%1%1%2%Fitness10%Flower arrangingYoga/dancingArt exhibition/museumTrekking/hiking/skiingWine tasting16%21%5%38%Interests of
165、 medical aesthetic consumersMost common cross-industry activities held by institutions 43In recent years,the rise of urban outdoor activities has also spread to medical aesthetic consumer groups.Institutions should seize this opportunity to bring the mountain lifestyle to potential consumers“Visitin
166、g art exhibitions/museums has become the priority focus of medical aesthetic consumers,aside from sports and outdoor activities.Institutions can take advantage of the opportunity to create an integrated concept of medical aesthetics plus visual aesthetics“by establishing independent art spaces to en
167、hance their brand tonalityMost popular interests among consumersCase-1Skincare brand co-hosted camping activity with BosidengAs the“secret to traffic generation that has emerged in recent years,camping,an outdoor lifestyle,has become the key form of brand marketing for many brands.A skincare brand e
168、xerts its influence through a series of joint outdoor activities with Bosideng,expanding sales channels between the brand and consumers and creating a new model of outdoor cross-boundary marketingThrough its brand mascot,a little woodpecker in the woods,the brand expressed a naturalistic personaliza
169、tion concept,symbolizing the awakening of the power of nature and further conveying the brands concept to event participants and the publicCase-2Data source:Allergan Aesthetics and Deloitte Consulting Consumer Survey,Desk ResearchBeer brand UCCA Lab create pop-up art exhibitionA beer brand collabora
170、ted with UCCA Lab to create the Roar:Sound Like a Tiger art exhibition.Embarking on an unprecedented triple crossover of drink,art,and electronic music,with an immersive interactive exhibition that blended avant-garde,experimental,and subversive elements to allow audiences troubled by the burdens of
171、 life to relax their defenses.When visitors stop to face their true selves,they instinctively find the direction of their hearts in roaring and releaseVisiting art exhibitions/museumsWine tastingFitnessTrekking/hiking/skiingYoga/dancingFlower arrangingOutdoor and art appreciation activities are incr
172、easingly popular and institutions can leverage artistic atmospheres to elevate tonalityChina Medical Aesthetic City PortraitsChapter 3 Allergan AestheticsAbstractDifferent cities in China have distinct regional economic,political,and business characteristics.The following city portraits facilitate m
173、edical aesthetic practitioners to clarify their positioning and develop localized strategies for sustainable and benign development by identifying key differences between cities,grasping the pulse of consumer culture,capturing insights from the characteristics of medical aesthetic institutions and c
174、onsumers,and ascertaining their regulatory prioritiesAllergan Aesthetics business consulting team filtered and selected 11 cities by city level and maturity of medical aesthetic market:Beijing,Shanghai,Guangzhou,Chengdu,Hangzhou,Shenzhen,Xian,Nanjing,Ningbo,Wuhan,and Chongqing,and conducted in-depth
175、 analysis of their development stages,institutional and consumer characteristics,and regulatory policies through desk research and consumer and institution surveys.This provides insights for practitioners to horizontally compare city characteristics and consumer preferences,and thus formulate and ad
176、just their strategies purposefullyNumber of institutions ranked 1st nationwideAbundant medical resourcesProactive physician entrepreneurship BeijingProactive and promising development of medical aesthetic market with a great number of various types of institutionsBeijings GDP per capita,disposable i
177、ncome per capita,and consumption expenditure per capita all surpassed the national averages in 2022Number of institutions21.84 million66.6%Keywords:diversification(mature top-tier institutions dominate with non-surgical-centric institutions rising rapidly),abundant medical resources,andproactive phy
178、sician entrepreneurshipAverage consumer unit price RMB11,421 in Beijing vs.RMB5,695 nationwidePermanentpopulationProportion of population aged 15-59Distribution of medical aesthetic institutions in Beijing(as of January 2023)Public institutions8%Private institutions92%The total number of medicalaest
179、hetic institutions is999Data source:Desk Research,Allergan Aesthetics and Deloitte Consulting Consumer/Institution Survey,and Allergan Aesthetic AnalysisUnit:RMB9998788393552467417288BeijingChongqingChengduShenzhenGuangzhouHangzhouShanghaiXianWuhanNanjingNingboThe number of medical aesthe
180、tic institutions in Beijing ranked 1st nationwide(as of January 2023)Number of Institutions47190,09177,41542,68385,69836,88324,538GDP per capitaDisposable Income per capitaConsumption Expenditure percapitaBeijingNational Average53%1BeijingPhysician IP is the core institutional competitiveness;strong
181、 consumption power and high demand among consumersCharacteristics of medical aesthetic institutionsCharacteristics of consumersAverage consumer unit price of surveyed institutions(RMB)Physician IP is considered a core competitive advantage by most medical aesthetic institutions in BeijingFor newly e
182、stablished institutions(operating for 0-5 years),the number of physician start-ups has a large proportion(27%)Strong consumption capability and high demand for surgical treatmentsData source:Allergan Aesthetics and Deloitte Consulting Consumer/Institution Survey0-5 years6-10 years11-15 years16 years
183、 andabove27%73%Other institutions include independent clinics(non-physician start-ups),channel-oriented,national chains,regional chainsPhysician start-upsOther institutions*484%7%7%7%10%16%21%27%Treatment DesignCombinationInternal Operation(Retained Customer Maintenance)High Cost-effectivenessMarket
184、ing Model(NewCustomer Recruitment)Customer Service ExperienceInstitution Positioning(Differentiated Positioning InstitutionQualification/ReputationPhysician IP64%63%79%49%61%78%86%35%CleansingPhotoelectric devicesInjectionSurgicalNationalBeijingDemand for medical aesthetic treatments11,4215,695Beiji
185、ngNationalNo.of surveyed institutionsBeijingHigh regulatory requirements maintain leading national position in regulation intensity and policy refinementIntensive implementation of policies:high intensity of regulatory control,and joint enforcement by multiple departments in medical aesthetic indust
186、rySpecific management measures:ensure clear requirements for institutions in terms of their scope of operations,product indications,and scope of surgical treatment operationsIssuance departmentsCore contentMain impactsBeijing Regulations on the Protection of Minors(revised draft)2022Beijing Civil Af
187、fairs BureauTen measures for medical aesthetic supervision2020Beijing DongchengMarket Supervision BureauSpecial campaign for outstanding problems in medical aesthetics202311 departments including Beijing Market Supervision Bureau,Beijing Health Commission,and etc.Medical aesthetic institutions shall
188、 not provide services to minors unless they get formal consent from guardiansIncludes illegal information disclosure,punishment notifications,raids,online supervision enhancement,joint enforcement,personnel management,administrative interviews,and connections between criminal cases and administratio
189、n cases,etc.More than half of these measures were proposed for the first timeMedical aesthetic institutions need to implement stricter procedures for providing services to minorsContinuously strengthening the intensity of regulation and exposing eight cases of illegal activities in the medical aesth
190、etic industryCombination of regulatory measures creates fair and orderly competitive environmentEnsures governance and regulation in the medical aesthetic industry is routineData source:Desk Research and Allergan Aesthetic Analysis49High income and High consumptionPioneering position in medical aest
191、heticHigh penetration rateTOPShanghaiLeading city in national consumption,featuring high end and new consumptionMore than half the population is under 40 years old,where mature population aged 30-34 accounted for the highest proportion40%of the population have an Associate degree or higher,indicatin
192、g high education level40%of the residents of Shanghai are migrants from other cities in China or globallyDiverse cityHigh income&purchasing powerBeijing 77,415Shanghai79,610Shenzhen 72,718Comprehensive strength of Shanghais nighttime economy ranks 1st nationwideConcentration of global retailers rank
193、s 2nd worldwideConcentration of international high-end brands is above 90%Total transaction value and per capita consumption of new generation online consumption rank 1st nationwideTOP 1TOP 2TOP 3Disposable income per capita in 2022 ranked 1st nationwideShanghai 46,045Hangzhou 46,440Beijing 42,638TO
194、P 1TOP 2TOP 3Top 3 cities by consumption expenditure per capita in 2022Key component of national consumptionGathering place for new consumptionThe first-mover economy is the main driver of expanding high consumption and improving consumption level.In 2022,1,073 new stores were established in Shangha
195、i,the most nationwide,and the city anticipated various forms of debuts and premieres to optimize and enrich its first-mover economy to boost diverse,high-end consumptionThe advantage of its population base combined with energetic consumption driven by strong economic development contributes to Shang
196、hai modernized consumption concept,especially its high acceptance of new concepts.The citys consumption environment is also well-recognized by global brands,making Shanghai a playground for new consumptionUnit:RMBUnit:RMBData source:Desk Research and Allergan Aesthetic Analysis51ShanghaiPioneering p
197、osition and stable development in medical aesthetics while embracing growth potentialCompared with other cities,Shanghai is a pioneer in medical aesthetics with high penetration rates,but due to strict regulation,the number of institutions in Shanghai ranks only 7th nationwide,indicating stable deve
198、lopment and certain growth potentialOct.2022Mar.15.2023Jan.2023The Shanghai Quality Control Center issued the Catalogue of Graded Management of Medical Aesthetic Services in Shanghai for trial implementation in October 2022,clarifying several requirements for the treatment index including setting up
199、per limits for single injection fillings to 8ml,making Shanghai the first city to provide guidance on treatment indexing.On 15 March 2023,the Shanghai Consumer Protection Commission announced that complaints related to medical aesthetics increased sharply(1.6-fold YoY).The problems found included fa
200、lse advertising,inducing consumption inducements,and unclear charging.Shanghais medical aesthetic industry released the first batch of typical cases for a special campaign on outstanding issues conducted by 11 departments including the Shanghai Market Supervision Bureau,Shanghai Health Commission,an
201、d Shanghai Drug Administration Bureau,finding four cases of illegal medical treatments and six instances of false advertising.Strict regulationDistribution of different types of medical aesthetic institutions in Shanghai(as of February 2023)Public Institution12%Private Institution88%9998788317176795
202、93593552467288GuangzhouShenzhenShanghaiXianBeijingChongqingNingboChengduHangzhouWuhan0.580.460.410.240.360.470.460.170.340.44Total number of private medical aesthetic institutions and institutions per 10,000 people in major cities nationwideData source:Desk Research and Allergan Aesthetic Analysis52
203、020406080020152020417Nanjing0.30No.7ShanghaiConsumers focus more on improving their personal temperaments and favor injection and body-contouring treatmentsWith a refined mindset,Shanghai medical aesthetic consumers value improving their personal temperaments highly,leading to a preferenc
204、e for injection and body-contouring treatmentsSatisfying quality investment needs to help consumers achieve spiritual resonance has become a key factor in improving consumer stickinessAverage consumer unit priceThe average store visit frequency for Shanghai consumer is 3.1 times per year,ranking 2nd
205、 nationwide,as does Shanghais average consumer unit price.Institutions can improve consumer stickiness to enrich their loyal consumer bases and achieve stable incomeConsumers prefer injection and body-contouring treatments35%36%42%43%37%Distribution of revenue by types of treatment by cityTreatment
206、categories with highest consumer interest by cityDemand for body contouring treatment by city11,42111,1069,1607,8467,6337,3007,2687,1476,5756,4416,4335,695NanjingBeijingShanghaiShenzhenChengduNingboHangzhouGuangzhouChongqingWuhanXianNational Average27%23%18%15%HangzhouShanghaiBeijingChengdu16%63%48%
207、64%33%39%7%13%28%11%30%14%22%42%19%10%14%17%7%Chengdu4%GuangzhouBeijingHangzhouShanghaiOthers*Photoelectrics&body careInjectionSurgery44%42%20%36%35%46%HangzhouBeijing19%35%Shanghai12%45%30%35%Chengdu16%48%37%GuangzhouSkincareSurgicalNon-surgical*Others include cleaning and other related programsDat
208、a source:Desk Research,Allergan Aesthetics and Deloitte Consulting Consumer/Institution Survey,Expert Interviews,and Allergan Aesthetic Analysis53Medical aesthetics in high demandChains institutions have highest proportionRelatively low institutional updating speedStable market structureGuangzhouLar
209、ge potential for the development of medical aesthetics as regulation is continuously upgradedUpgraded regulation:In 2022,11 departments including the Market Supervision Bureau,Health Commission,and Prosecutors Office of Guangzhou carried out a special campaign to address outstanding problems in the
210、medical aesthetic industryLeveraging spokespeople for endorsements and publishing unapproved advertisementsFailing to fill in medical records as required and violation of medical aesthetic physicians responsibilityIllegal sale of counterfeit botulinum toxin productsPrice fraud,including institutions
211、 not following their own promotion description Macroeconomic indicators for Guangzhou surpassed the national average in 2022.The permanent population was 18.68 million with 11.41%aged 60 or older,demonstrating an aging trend amid an ongoing“golden period”of demographic dividend99987883935
212、52467417288BeijingShanghaiChengduShenzhen HangzhouChongqingGuangzhouNanjingXianWuhanNingboNumber of institutionsThe number of medical aesthetic institutions in Guangzhou ranked 5th nationwide(as of January 2023)Data source:Desk Research,Allergan Aesthetics and Deloitte Consulting Institution Survey,
213、and Allergan Aesthetic AnalysisComparing surveyed institutions,Guangzhou has the highest proportion of chains,with a relatively low proportion of physician start-ups than average levelBeijing26%36%16%31%24%10%Shanghai12%13%18%12%19%20%18%26%21%36%14%Guangzhou11%20%8%32%28%12%Shenzhen15%22%AverageInd
214、ependent clinics(Non-physician start-ups)National chainsRegional chainsChannel-oriented clinicsPhysician start-ups55153,31771,35743,98085,69836,88324,538GDP per capitaDisposable income per capitaConsumption expenditure per capitaGuangzhouNational AverageUnit:RMBGuangzhouStable medical aesthetic mark
215、et structure but institutions face relatively low space utilization ratio*Operating years&distribution of medical aesthetic institutionsThe proportion of newly established institutions(operating for 0-5 years)in Guangzhou is the lowest compared to Beijing,Shanghai,and Shenzhen,indicating a slow pace
216、 of institutional updating and a relatively stable market structure(as of January 2023)Guangzhou medical aesthetic institutions have the largest operating areas compared to Beijing,Shanghai,and Shenzhen at nearly double the average sizeGuangzhou has the lowest average customer unit price compared to
217、 Beijing,Shanghai,and Shenzhen,at about 1/3 lower than the average valueArea&customer unit price of medical aesthetic institutionsData source:Allergan Aesthetics and Deloitte Consulting Institution Survey and Allergan Aesthetic AnalysisNote:Space utilization ratio indicates the efficiency of utilizi
218、ng operating areas,as demonstrated by average customer unit price per square meter of operating area 27%53%48%13%21%11%13%Beijing13%24%12%Shanghai18%48%8%20%Shenzhen47%26%16%Average39%32%11%Guangzhou15 years or more0-5 years6-10 years11-15 years1,9721,5144,2161,8322,383AverageBeijingShanghaiGuangzho
219、uShenzhenAverage operating area(sq m)11,42111,1067,2689,1609,739GuangzhouBeijingAverageShanghaiShenzhenAverage consumer unit price(RMB)56City of medical aestheticsIntense competitionRelatively low consumer unit price Allergan AestheticsIn 2022,Chengdus macroeconomic indicators exceeded the national
220、average.The permanent population increased by 76,000 people or 0.4%to 21.27 millionAs a major inland city with strong syphon effect,Chengdus urban permanent population is 16.99 million with an urbanization rate of 79.9%.4.1 million of residents are aged 60 or above,indicating an aging rate of 19.8%1
221、2 departments in Chengdu,including the Municipal Bureau of Market Supervision and Municipal Health Commission,continued to increase their efforts to combat illegal and criminal activities in the medical aesthetic industry and launched Operation Spring Thunder to carry out special inspections of inst
222、itutions,focusing on rectifying industry chaosPurchasing medicine or medical devices through illegal channelsUsing unregistered or invalid medicines,medical devices,and cosmetic productsAdvertising illegal medical products,medical aesthetic loan fraud,and price fraudIllegally carrying out medical ae
223、sthetic activities without licenses and qualificationsThe number of medical aesthetic institutions in Chengdu ranked 2nd nationwide(as of January 2023)The proportions of chains and non-chains are about same,and the number of physician start-ups is relatively small,accounting for only 9%of the market
224、,lower than the average level in 1st-tier cities(as of January 2023)RegulationData source:Desk Research,Allergan Aesthetics and Deloitte Consulting Institution Survey,and Allergan Aesthetic AnalysisChengduCity of medical aesthetics with a vibrant economy,diverse types of institutions,and strong regu
225、lationNumber of Institutions9998788393552467417288ChengduBeijingHangzhouShenzhenGuangzhouXianShanghaiChongqingWuhanNanjingNingbo19%Hangzhou26%36%10%18%13%11%16%National AverageBeijing20%20%13%26%31%Shanghai29%Guangzhou14%36%12%21%18%12%8%13%28%42%32%8%Xian20%27%Shenzhen19%15%27%27%17%9%12
226、%29%Chengdu7%33%8%21%Chongqing12%21%18%23%25%Channel-orientedIndependent clinics(non-physician start-ups)Regional chainsNational chainsPhysician start-ups5898,14947,94828,98985,69836,88324,538GDP per capitaDisposable income per capita Consumption expenditure per capitaChengduNational AverageUnit:RMB
227、59Operating years&distribution of institutionsAs of January 2023,there are about as many newly established institutions(operating 0-5 years)in Chengdu as there are those that have been established more than 5 years(roughly 5:5),indicating accelerating upgrading and intense competitionArea&customer u
228、nit price Chengdus medical aesthetic institutions have smaller operating areas than the national average among 1st tier cities,with about 70%mid-small in size Chengdus average consumer unit price is at the median level among all 1st-tier cities and nearly a third below the average for Beijing and Sh
229、anghaiChengduIntense competition with accelerating upgrading by institutions;more room to improve institutional space utilization19%26%7%69%Hangzhou0%12%20%67%0%Xian8%53%32%26%21%39%12%13%13%Beijing50%12%Chengdu48%27%13%12%11%Shanghai48%24%42%8%Shenzhen42%31%13%14%National Average18%GuangzhouChongqi
230、ng25%25%15 years and above11-15 years6-10 years0-5 yearsData source:Allergan Aesthetics and Deloitte Consulting Institution Survey,and Allergan Aesthetic AnalysisAverage operating area(sq m)4,2164,1873,0012,9532,8402,5682,1581,9721,8671,8321,5911,514XianNanjingGuangzhouNingboWuhanNational AverageChe
231、ngduHangzhouBeijing ChongqingShenzhenShanghaiAverage consumer unit price(RMB)11,42111,1069,1607,8467,6337,3007,2687,1476,5756,4416,4335,695BeijingGuangzhouShanghaiWuhanChengduHangzhouShenzhenNingboNanjingChongqingXianNational Average60Distribution of revenues by types of treatmentsThe national avera
232、ge distribution of revenues across non-surgical,skincare,and surgical treatment is roughly 4:4:2.For Chengdu,the proportions for non-surgical and skincare are about 35%and the proportion of surgical is 30%;there is room to improve non-surgical treatments contribution compared to other 1st-tier citie
233、sAnnual consumption per capita&growth rate by types 65%of consumers in Chengdu visit institutions once or twice a year,average consumption frequency is 2.8,and average annual consumption per capita is RMB21,544,slightly below the national average;annual consumption in 1st-tier cities including Beiji
234、ng and Shanghai is 1.5 or 2 times higher Compared to institutions in other cities,the forecast growth rate for non-surgical treatment in Chengdu is 33%,higher than the national average;cities including Beijing,Shanghai,and Shenzhen have higher expected growth rates for skincare,with Chengdu having a
235、 forecast growth rate of 24%,lower than the national averageChengduA relatively high proportion of surgical treatments,with growth potential,but quite low average annual consumptionData source:Allergan Aesthetics and Deloitte Consulting Consumer/Institution Survey,and Allergan Aesthetic Analysis30%3
236、0%20%21%20%18%17%14%13%37%35%41%41%45%46%46%46%44%33%35%39%38%36%36%37%40%43%ChengduChongqingBeijingXianNational AverageShenzhenShanghai GuangzhouHangzhouSurgicalSkincareNon-surgicalAverage annual consumption per capita(RMB)43,49433,30425,55822,86921,54421,40019,32117,09516,333ShanghaiBeijingChongqi
237、ngHangzhouXianNational averageChengduShenzhenGuangzhouSkincare30%27%29%33%National average34%15%31%ShanghaiBeijing31%15%11%20%33%23%Guangzhou17%10%37%Shenzhen24%Non-surgicalHangzhou18%15%24%9%Chengdu37%Xian20%28%Chongqing15%27%31%SurgicalYoungest core consumer groupMecca for the most popular treatme
238、ntsHangzhouInternet leader with young population and vivacious consumersTOPAverage age of permanent population is about 38.8 years oldHangzhou ranks 1st nationwide in terms of newly created job positions,number of applicants,and salariesYoung talent are attracted to Hangzhou,providing a continuous s
239、tream of innovative vitalityCity of youth&talentHigh consumer vitality&potentialShanghai46,045Hangzhou 46,440Beijing 42,638TOP 1TOP 2TOP 3Consumption expenditure per capita in 2022 ranked 1st nationwideInternet City The influx of talent into Hangzhou has boosted consumption in recent years Governmen
240、t&business collaboratively boost consumer confidence to stimulate Hangzhous consumer potential&vitalityAccording to data from Zhejiang Provincial Department of Commerce:32 top-tier comprehensive and vertical live-streaming platformsOver 5,000 registered enterprises in the live-streaming industrySupp
241、ly chains established by large enterprisesAt least one out of every 244 people in Hangzhou is an influencer and there is one live streamer for every 12 residentsStrong desire to be photogenic is driving medical aesthetic market potential Hangzhous thriving internet celebrity economy promotes the pop
242、ularization of medical aesthetics Consumers are more open-minded towards new projects,products,and technologies,and have more confidence in medical aestheticsData source:Desk Research and Allergan Aesthetic AnalysisCreating more than 1 million employment opportunitiesUnit:RMB62HangzhouRapid developm
243、ent in medical aesthetics with diverse and intense competitionDistribution of different types of medical aesthetic institutions in Hangzhou(as of February 2023)050005201020152020Clearing chaos&refining the market1 institution had its medical practice license revoked11 medical aesthetic in
244、stitutions fined4 physicians penalized3 unlicensed medical aesthetic venues finedHangzhou Health Commission led the Thunder 2022-Crackdown on illegal medical aesthetics special campaign in 2022:78 cases filed in Hangzhou,including 37 cases of unlicensed medical aesthetics and 41 cases regarding inst
245、itutions and physiciansTotal fines of RMB1.34 millionSeveral items of equipment confiscatedCompared to other cities,Hangzhou had a relatively late start in medical aesthetics,but has embraced rapid developmentAmid intense competition,consumers have heightened expectations for services.Institutions c
246、an enhance customer loyalty and gain competitiveness by providing differentiated,personalized servicesData source:Desk Research and Allergan Aesthetic AnalysisPublic Institution6%Private Institution94%9998788393552467288GuangzhouShenzhenShanghaiXianBeijingChongqingNingboChengduHangzhouWuh
247、an0.580.460.410.240.360.470.460.170.340.44Total number of private medical aesthetic institutions and institutions per 10,000 people in major cities nationwide63417Nanjing0.30No.4HangzhouYounger consumer group seeking refined aesthetics makes Hangzhou the“Mecca”for new technologies and treatmentsWith
248、 the popularity of“internet celebrity”aesthetics,the core consumer groups in Hangzhou is mainly younger group aged below 35To sustain an advantage in Hangzhous ultra-competitive medical aesthetic market,institutions must firmly grasp young consumer groups,satisfy diverse and personalized aesthetic n
249、eeds,and keep innovating and improving technologies and treatments Younger consumer group seeks refined aestheticsOver 80%of core medical aesthetic consumers in Hangzhou are aged 35 and under,making it the youngest city in China in terms of core medical aesthetic populationHigh demand for non-surgic
250、al treatmentsHigh acceptance of new technologiesSeek refined aestheticsAs a result of intense market competition and new technologies and treatments driven by change-seeking“internet celebrity”aesthetics,new treatments often originate in Hangzhou and then expand nationwide,such as facial contouring
251、and lifting,“baby face”,and high cranial roofThe booming medical aesthetic market in Hangzhou not only attracts consumers to experience new services and technologies,but also doctors from elsewhere to enter the marketThe“Mecca”for aesthetics Significant syphon effectData source:Desk Research,Allerga
252、n Aesthetics and Deloitte Consulting Institution Survey,Expert Interviews,and Allergan Aesthetic Analysis31%24%3%20%1%7%20%21%28%17%47%1%54%34%18%33%22%13%53%46%28%42%47%17%40%26%33%40%20%27%32%40%33%36%4%38%13%27%60%38%9%NanjingHangzhou12%8%6%1%BeijingChengduXian1%GuangzhouShanghaiShenzhenNingbo4%8
253、%Chongqing6%Wuhan7%1%National Average26-30 years old50 years old or above41-50 years old36-40 years old31-35 years oldBelow 25 years old64Core consumer age groups of medical aesthetic institutions by city*Some cities may have some deviation from the actual data due to insufficient sample sizeActive
254、medical aesthetic marketHigh proportion of physician start-upsShenzhenFavorable policies drive medical aesthetic development,with a high proportion of physician start-upsPolicy-first:In July 2022,the Shenzhen Development&Reform Commission issued the Measures to Promote High-Quality Development of th
255、e Health Industry Cluster in Shenzhen,indicating the direction of promoting development of the medical aesthetic industrySupporting development of medical aesthetic industry:Medical aesthetic institutions who newly obtain a JCI certificate can get priority subsidies of up to 20%of total investment,u
256、p to no more than RMB10 million Enhanced supervision and standardization:Shenzhen Medical Aesthetics Quality Control Center established to promote sustained quality improvementsShenzhens GDP,disposable income,and consumption expenditure per capita surpassed the national averages in 2022.It has a per
257、manent population of 11.91 million with an average age of 32.59998788393552467417288ShenzhenBeijingChengduHangzhou GuangzhouChongqingShanghaiXianWuhanNanjingNingboNumber of InstitutionsThe number of medical aesthetic institutions in Shenzhen ranked 3rd nationwide(as of January 2023)Nearly
258、 30%of Shenzhens institutions are physician start-ups,the highest compared to Beijing,Shanghai,Guangzhou;the proportion of regional chains is relatively low at only about 8%Data source:Desk Research,Allergan Aesthetics and Deloitte Consulting Institution Survey,and Allergan Aesthetic Analysis16%Beij
259、ing20%26%36%12%10%31%18%Average12%19%20%Shanghai18%Guangzhou21%36%14%11%32%8%28%12%Shenzhen26%15%24%22%13%Physician start-upsIndependent clinics(Non-physician start-ups)Regional chainsChannel-oriented clinicsNational chains66183,18872,71844,79385,69836,88324,538GDP per capitaDisposable income per ca
260、pitaConsumption experditure per capitaShenzhenNational Average“Hong Kong medical aesthetic institutions target local consumers and leverage social media and low-price strategies to attract new consumers.Indeed,some consumers indicate their willingness to have treatment in Hong Kong instead”A medical
261、 aesthetic institution manager in ShenzhenShenzhenInstitutions value consumer experiences and internal operation,but are affected by the syphon effect from Hong Kong and MacauShenzhen has the largest deficit in number of institutions(number registered minus number closed)compared to Beijing,Shanghai
262、,and Guangzhou(as of February 2023)Decline in medical aesthetic institutions due to syphon effect from Hong Kong and MacauInstitutions in Shenzhen value consumer experience and internal operation more“Its much more convenient to go to Hong Kong now.With cheap prices,professional doctors,and strong a
263、dvertisements,I would definitely choose Hong Kong”A medical aesthetic consumer in Shenzhen14%10%56%18%27%11%7%BeijingShenzhen62%24%9%AverageShanghai54%21%11%Guangzhou24%32%20%51%23%12%14%Consumer experiencesOthers*Surgeon IPInternal operation*Others include institutional positioning,institutional qu
264、alifications/reputation,high cost-effectiveness,marketing models,package design combinations,etc.Number of institutionsAssessment of institutional comparative advantagesData source:Desk Research,Allergan Aesthetics and Deloitte Consulting Institution Survey,and Allergan Aesthetic Analysis-2BeijingSh
265、anghaiGuangzhouShenzhenAverage1-2-1-767Top-tier institutions dominate the marketGreat potential for diversifying institutionsConsiderable room for consumer cultivation XianStrong attractiveness to migrants;economic growth prospects boosting confidence in medical aesthetics upgradingAn important city
266、 in Northwest China of economic and strategic significancePermanent population of more than 12 million,7th nationwide;Xian has seen the fastest population growth among northern cities and continues to absorb migrants from other Northwest China provincesThe number of undergraduate and junior colleges
267、 in Xian ranks 7th among cities in China;it has the 3rd most undergraduate colleges nationwideXianAn important city in Northwest China that continues to attract migrants Relatively large gap between Xian&1st-tier cities in terms of GDP,disposable income,&consumption expenditure per capita in 2022The
268、 number of medical aesthetic institutions in Xian ranked 6th nationwide(as of January 2023)Public institutions5%Private institutions95%The total number of medicalaesthetic institutions is593Promising GDP growth in 20237%vs5.5%Xian vs National AverageAccelerate construction of international consumpti
269、on-centric city and cultivate Xians brand of“Three Capitals and Four Cities”9998788393552467417288NingboBeijingGuangzhouChengduShenzhenXianHangzhouShanghaiChongqingWuhanNanjingData source:Desk Research,and Allergan Aesthetic AnalysisNumber of Institutions6941,61077,41542,68320,81847,94828
270、,98911,48740,21424,051GDP(RMB100 million)Disposable income per capitaConsumption expenditure percapitaBeijingChengduXianXianMarket dominated by top-tier institutions but there is still considerable room for consumer education and cultivation 70%of medical aesthetic institutions in Xian,about the sam
271、e proportion as in Chengdu,were established in the past 5 yearsOn the consumer side,Xians average consumer unit price&store visit frequency are relatively low,indicating consumers have yet to form the habit of regular treatmentAverage consumer unit price(RMB)Average frequency of store visits per yea
272、r(count)“Market is dominated by top-tier institutions;mid-to low-tier institutions are striving to break through,while high-end boutiques keep popping upAlthough the pace of development of the medical aesthetic industry in Xian is roughly the same as that of Chengdu-the capital of medical aesthetics
273、-in terms of institutions establishment time,there are still gaps:penetration rate and average customer unit price are lower as consumers have not yet formed the habit of regular treatmentIn addition,Xians medical aesthetic market is dominated by top-tier institutions,with few mid-to-lower tier inst
274、itutions.Although there are many newly established institutions,their sales volume tends to be lackluster.At the same time,the diversity of institution types needs further improvementOverall,Xian,as a key city of Northwest China,has a considerable number of medical aesthetic institutions.However,the
275、 variety of business models is not very diverse.However,a positive economic growth outlook is expected to boost its development.Further increasing market penetration is the key to promoting long-term growthDistribution of existing institutions by establishment time from 2013-2022 Data source:Desk Re
276、search,Allergan Aesthetics and Deloitte Consulting Institution Survey,and Allergan Aesthetic Analysis7077%39%25%73%44%19%95%68%42%96%69%37%Proportion of institutionsestablished within 10 yearsProportion of institutionsesablished within 5 yearsProportion of institutionsestablished within 3 yearsBeiji
277、ngShanghaiChengduXian11,421 11,106 9,160 7,846 7,633 7,300 7,268 7,147 6,575 6,441 6,433 5,695 BeijingShanghaiShenzhenHangzhouNingboNanjingGuangzhouChengduChongqingWuhanXianNationalAverage4.03.13.02.92.92.82.72.62.52.32.32.1NingboShanghaiHangzhouBeijingNationalAverageChengduGuangzhouShenzhenWuhanNan
278、jingXianChongqingStrong medical aesthetic cultureConservative and mature consumers as core groupsNanjingDemographic dividend driving economic development and consumer spending;strong medical aesthetic cultureStrong consumption and its influence,plus government support for the business environment,su
279、bsidies,and project cultivation are providing sustained momentum for Nanjings rapid developmentMetropolitan zone drives high consumption potentialPermanent population and GDP ranked 2nd nationally,and population increment ranked 1st in Jiangsu province in 2022 Increasing city attractiveness followed
280、 by growing demographic dividendDisposable income per capita ranked 7th nationwide in 2022 Nanjing,the center of the metropolitan area,has become a core consumption market with the potential to reach 37 million people Mature and complete commercial system with strong convenience in personnel,materia
281、l,and business flowRetail sales of social consumer goods per capita ranked 1st nationwide in 20218NOWWidespread promotion shows for Harisuin 2001 to 2003 triggered the first rapid development of Nanjings medical aesthetic marketThe International Plastic Surgery Beauty Festival hosted by N
282、anjing ComeiAesthetic Hospital and the Korean plastic surgery trend mapped the path between China and Korea for plastic surgery chainsYestar and MyLike Group entered Nanjing in 2016 and 2018 respectively,signaling Nanjing as a relatively mature medical aesthetic market in ChinaIn recent years,many w
283、ell-established institutions entered the Nanjing market,promoting the sustainable development of the citys medical aesthetic marketRanked 8th in medical aesthetic market size nationwide in 2021 and 2022417 medical aesthetic institutions,the 10thmost nationwide and 1st in Jiangsu provincePublic insti
284、tutions7%Private institutions93%Data source:Desk Research,and Allergan Aesthetic AnalysisSolid market size and foundation in medical aesthetics72NanjingConsumers are mature and conservative;competition between institutions is accelerating standardizationMature and conservative consumer baseCore comp
285、etitiveness needs further improvementEmphasize compliance More than 60%of core consumers are mature users over the age of 35,who tend to be relatively conservative,value privacy,and not good at sharing their treatment experiences Medical aesthetic consumers are relatively quiet on social media in Na
286、njing The market relies on low-price strategies as a common means of competition,with more than 33%of institutions(the most nationwide)regarding cost-effectiveness as their core competitiveness Nanjing Intermediate Peoples Court officially accepted the first national consumer civil public interest l
287、itigation case in medical aesthetics,regarding counterfeit Thermage,on 6 March 2023,taking the lead in medical aesthetic regulationEnhancing qualifications and reputation,improving innovation,and optimizing service provided can help institutions enhance their competitive advantageinstitutions can fo
288、cus on developing young consumer groups due to large penetration potential and efficiently leverage social media for promotionEmbedding a compliant corporate mindset into operation and promotion can shape a benign market environmentCore consumer age groups of medical aesthetic institutions by city 2
289、4%20%31%20%21%28%17%47%1%13%34%18%33%22%54%53%46%28%42%47%17%20%40%26%33%40%12%27%32%40%33%36%60%38%13%27%4%8%38%8%9%6%1%7%NanjingBeijing1%3%6%ChengduXian1%ShanghaiHangzhouNingboGuangzhou4%ShenzhenChongqingWuhan1%National Average7%50 years old or above41-50 years old36-40 years old31-35 years old26-
290、30 years oldBelow 25 years oldData source:Allergan Aesthetics and Deloitte Consulting Institution Survey,Expert Interviews,and Allergan Aesthetic Analysis73*Some cities may have some deviation from the actual data due to insufficient sample sizeLate start but rapid growth in medical aestheticsHigh p
291、roportions of new established institutionsSmall institutions dominate the marketNingboThe development of medical aesthetics is in line with new first-tier cities;great potential for further development driven by strong economic performanceThe medical aesthetic market in Ningbo started to take off af
292、ter 2000 and entered explosive growth around 2015Disposable income per capitaGDP(RMB100 million)Consumer expenditure per capitaNingboShanghaiHangzhouAlthough there is a gap in GDP between Ningbo and cities around(Shanghai and Hangzhou),there is no major difference in disposable income per capita or
293、consumption expenditureMain city in the Shanghai metropolitan area,Ningbo is a key economic center within the southern area of the Yangtze River Delta In 2022,the permanent population grew by 74,000 to 9.62 million,ranking 3rd in the Yangtze River Delta;per capita GDP hit RMB163,900,7th nationwide,s
294、urpassing Hangzhou for the first timeNingbo ranks 5th nationwide and has been in the group of major cities for four consecutive years 292 medical aesthetic institutionsAverage growth rate of 17%over the past three yearsPublic institutions7%Private institutions93%Data source:Desk Research,Allergan Ae
295、sthetics and Deloitte Consulting Institution Survey,and Allergan Aesthetic AnalysisUnit:RMB7569%24%4%3%0-5 years6-10 years11-15 years15 years or moreEstablishment of medical aesthetic institutions0.24 0.56 0.30 ShanghaiHangzhouNingboNumber of private medical aesthetic institutions per 10,000 people4
296、4,65379,61046,04570,28146,44015,70468,34842,977020406080200220152022Year of establishment of medical aesthetic institutions18,753NingboA welcoming city for medical aesthetics with balanced development and continuous strengthening of regulationVarious types of institutions,including single institutio
297、ns(start-ups by physicians,independent clinics),channel-oriented clinics,regional chains,and national chains,have relatively diverse,balanced developmentin Ningbo,where the scale of independent clinics exceeds the national average and the number of institutions that have been cancelled or closed is
298、lower than averageMost institutions in Ningbo are small,with monthly revenues less than RMB5 million.Top institutions with revenues of more than RMB10 million are the next biggest group,followed by those with monthly revenues of RMB5 million to RMB10 millionNingbos consumer unit price is at the aver
299、age level compared to Hangzhou and Nanjing,although it has the higher frequency of consumer store visits compared to Shanghai,Hangzhou,and NanjingNingboNational Average21%18%3%Proportion of cancelled or closed medical aesthetic institutionsProportion of different institutional size&scale26%National
300、average Independent Clinics(non-physician start-ups)7,633Average consumer unit priceStore visit frequency per yearAverage monthly revenue6%8%Continuous reinforcement and innovation in regulationAug.2022|Launch of the first medical aesthetic institutions physician face recognition supervision system,
301、“the electronic policeSep.2022|Ningbo launched a special campaign to regulate medical aesthetic devices to promote industry standardizationDec.2022|Release of compliance guidelines for medical aesthetic activitiesMar.2023|Ningbo announced 10 typical cases of special governance in the medical aesthet
302、ic industry.Since September 2022,two criminal cases and 148 administrative cases were filed,with 124 cases concluded so far and total fines of RMB 3.39 millionUnit:RMBUnit:RMBUnit:countData source:Desk Research,Allergan Aesthetics and Deloitte Consulting Institution Survey,and Allergan Aesthetic Ana
303、lysis7633%20%20%14%13%Independent clinics(non-physician start-ups)Regional chainsNational chainsPhysician start-upsChannel-oriented11,106 7,846 7,633 7,300 ShanghaiHangzhouNingboNanjing4.03.13.02.3NingboShanghaiHangzhouNanjingPolycentric citySpread-out institutional distributionSubstantial room for
304、strengthening consumer education WuhanPolycentric city in Central China with accelerating consumption upgrading;great potential in medical aestheticsKnown as the Passageway to Nine Provinces,Wuhan is an important transportation hub;it has three divisions of equal standing-Hankou,Wuchang,and Hanyang,
305、together forming a typical polycentric cityWith more than 12 million permanent residents,Wuhan ranks 6th nationwide;in 2021,Wuhans incremental population reached 1.2 million,1st nationwideWuhan has the second largest number of undergraduate and junior colleges among cities in China;the number of und
306、ergraduate students exceeds 1.68 million,1st nationwideWuhanA typical polycentric city in Central China Although Wuhans GDP was not outstanding in 2022,disposable income and consumption expenditure per capita were quite considerableAccelerating consumption upgradingAccelerate the construction of an
307、international consumption-centric city Wuhan will form a promising consumption pattern by leveraging its waterfront locationMultiple blockbuster shopping malls are accelerating upgrading in Wuhan Plaza 66,K11,Mixc,and Wushang Mall have entered the Wuhan market to further unleash the citys consumptio
308、n capability Sales volume of malls in Wuhan ranked 6th in China in 2022The number of medical aesthetic institutions in Wuhan ranked 9th nationwide(as of January 2023)Data source:Desk Research,Allergan Aesthetics and Deloitte Consulting Institution Survey,and Allergan Aesthetic Analysis99987883171767
309、9593593552467417288ChongqingGuangzhouShenzhenShanghaiBeijingHangzhouChengduWuhanXianNanjingNingboThe total number of medicalaesthetic institutions is467Public institutions7%Private institutions93%Number of Institutions7828,83971,35743,98029,12935,66625,37118,86653,96134,346GDP(RMB100 million)Disposa
310、ble income per capitaConsumption expenditure percapitaGuangzhouChongqingWuhanWuhanMedical aesthetic institutions are relatively spread-out but can leverage consumer education to elevate consumptionThe distribution of medical aesthetic institutions is quite even across urban districtsDistribution of
311、medical aesthetic institutions in WuhanOn the consumer side,Wuhan has great potential to improve average consumer unit price and store visit frequency“Wuhan has a large urban area and relatively balanced development across various urban districts.As a result,medical aesthetic institutions are quite
312、spread-out,and consumers mainly consume within their own districts.”“In Wuhan,there are many colleges and college students;families put greater emphasis on education and spend more on education,so there is relatively little consumption of medical aesthetics.On the other hand,intellectuals are relati
313、vely conservative and rational,therefore it is essential to improve willingness to pay for medical aesthetics by enhancing consumer education”Wuhans medical aesthetics market is dominated by top and mid-tier institutions.Top-tier institutions are mainly national chains.In terms of institution scale,
314、there is relatively broad distribution,although business model diversity(such as physician start-ups,boutique institutions,etc.)could be enriched furtherThe average consumer unit price in Wuhan is quote low,as is the frequency of consumer visits.The culture of medical aesthetics is not as strong as
315、it is in cities with more developed medical aesthetic markets.Consumers willingness to pay for medical aesthetics is not high eitherA reflection of the“Great River,Great Lake,Great Wuhan”theme,Wuhan boasts a large urban area with relatively balanced development and multiple consumption centers.Enhan
316、cing consumer willingness to pay is key to promoting development of the medical aesthetic market,highlighting the overarching importance of consumer educationData source:Desk Research,Allergan Aesthetics and Deloitte Consulting Consumer/Institution Survey,and Allergan Aesthetic AnalysisAverage consu
317、mer unit price(RMB)Average frequency of store visits per year(count)79432750758183108OthersHanyang DistrictQiaokou DistrictHongshan DistrictJiangan DistrictJianghan DistrictWuchang District11,421 11,106 9,160 7,846 7,633 7,300 7,268 7,147 6,575 6,441 6,433 5,695 BeijingShanghaiShenzhenHangzhouNingbo
318、NanjingGuangzhouChengduChongqingWuhanXianNationalAverage4.03.13.02.92.92.82.72.62.52.32.32.1NingboShanghaiHangzhouBeijingNationalAverageChengduGuangzhouShenzhenWuhanNanjingXianChongqingTop-tier institutions dominate the marketHigh proportion for surgical treatmentsSlow growth rate for non-surgical t
319、reatments Allergan Aesthetics81Chongqings GDP per capita has exceeded RMB90,000 for the first time and surpassed the national average,disposable income per capita is lower than average,and consumption expenditure is about level with the averageThe permanent population has grown by 9,100 people to 32
320、.13 million.The urban permanent population is 22.80 million with an urbanization rate of 70.96%.5.9 million residents are 60 or older,indicating an aging rate of 18.3%Chongqing Market Supervision Bureau and another 9 departments launched a special campaign in 2022 to rectify problems in the medical
321、aesthetic industry including false advertising,illegal practice of medical treatment,counterfeit products,and price fraudIllegally carrying out medical aesthetic activities without obtaining licenses and qualifications or using nursesUsing unregistered medicines,medical devices,and cosmetic products
322、False and illegal advertisingPrescription dispensing by unqualified pharmacists and obstruction of drug administrationThe number of medical aesthetic institutions in Chengdu ranked 8th nationwide(as of January 2023)RegulationData source:Desk Research,Allergan Aesthetics and Deloitte Consulting Insti
323、tution Survey,and Allergan Aesthetic AnalysisChongqingCore city with a stable economy,top institutions dominate the medical aesthetic market,with stronger,more targeted regulationNumber of Institutions9998788393552467417288HangzhouBeijingShenzhenChengduGuangzhouXianNingboChongqingShanghai
324、WuhanNanjingThe proportion of chains is about 60%,with a relatively low numbers of physician start-ups and channel-oriented clinics(about 8%each),much lower than the average level of 1st-tier cities(as of January 2023)29%19%25%17%19%Shenzhen8%12%36%16%9%10%Beijing26%Chongqing13%36%20%13%23%18%31%Sha
325、nghai12%13%11%21%14%15%21%18%33%Guangzhou20%12%Chengdu28%27%32%National Average18%8%20%27%Hangzhou12%21%29%7%Xian27%8%42%26%Independent clinics(non-physician start-ups)Channel-orientedRegional chainsNational chainsPhysician start-ups90,66335,66625,37185,69836,88324,538GDP per capitaDisposable income
326、 per capitaConsumption expenditure percapitaChongqingNational AverageUnit:RMB82Operating years&distribution of institutionsAbout 25%of institutions in Chongqing are newly established(operating 0-5 years.Sector upgrading is relatively slow as the market is dominated by long-established institutionsAr
327、ea&customer unit price Chongqings average operating area is smaller than the national average for 1st-tier cities;about 80%of institutions are mid-small in size Chongqing has a median consumer unit price among 1st-tier cities,with room to improveChongqingFew new institutions with long-established in
328、stitutions operating stably;operating areas and unit prices are relatively low8%26%42%21%0%67%11%69%19%31%0%12%Hangzhou7%XianChongqing53%25%12%13%18%National Average13%26%Beijing50%12%Chengdu48%48%27%ShenzhenShanghai13%20%12%24%42%13%14%39%32%Guangzhou25%8%0-5 years15 years and above6-10 years11-15
329、yearsData source:Allergan Aesthetics and Deloitte Consulting Institution Survey,and Allergan Aesthetic AnalysisAverage operating area(sq m)Average consumer unit price(RMB)11,42111,1069,1607,8467,6337,3007,2687,1476,5756,4416,4335,695ChengduHangzhouBeijingNingboShanghaiNanjingShenzhenGuangzhouChongqi
330、ng WuhanXianNational Average4,2164,1873,0012,9532,8402,5682,1581,9721,8671,8321,5911,514NanjingHangzhouGuangzhouWuhanXianNingboNational AverageChongqingBeijingShenzhen Chengdu Shanghai83Distribution of revenues by types of treatmentsThe national average distribution of non-surgical,skincare,and surg
331、ical treatment revenues is roughly 4:4:2.In Chongqing,non-surgical is below average at 33%,as is skincare at 37%,indicating potential to develop non-surgical treatmentsAnnual consumption per capita&growth rate by types 75%of consumers in Chongqing visit institutions once or twice a year,average cons
332、umption frequency is 2.6,and average annual consumption per capita is RMB17,095,below the national averages.Average annual consumption per capita is 1.5 to 2 times higher in Beijing and Shanghai In Chongqing,non-surgical treatment is forecast to grow by 28%and skincare is expected to increase by 20%
333、,both below the national average;the forecast growth rate for surgical treatment is close to the national level,indicating a need to adjust non-surgical treatments in parallel with the national development trend ChongqingRelatively high proportions of non-surgical and surgical treatments;average annual consumption is quite low,and the expected growth rate for non-surgical is lower than averageData