Laser medical and cosmetic equipment, as the upstream products of the medical and cosmetic industry chain, will continue to benefit from the growth of the overall industry, with huge market space.
Since the 1990s and this century, lasers and their derivatives of optoelectronic energy treatment equipment has developed rapidly, especially in dermatology, plastic surgery, urology and ophthalmology and other clinical departments to be widely used.
In the past two years, photoelectric beauty equipment in the field of life beauty gradually popularized, and minimally invasive and non-invasive treatment has been the development trend of the domestic medical cosmetology, in the past few years, botulinum toxin, laser or IPL skin rejuvenation, RF skin tightening, fillers and other non-surgical treatments in the country has grown rapidly, and has exceeded the amount of surgical treatments.
In addition, laser anti-aging, skin tightening, lifting, wrinkle, a variety of non-invasive, minimally invasive phototherapy beauty treatment is also accepted by ordinary consumers, the age of the customer broad-spectrum is becoming increasingly obvious, medical cosmetic lasers, a class of non-invasive or minimally invasive therapy will usher in the development of a very considerable prospect. Arterial.com has been combing through the changes in this industry.
M&A consolidation, emergence of oligarchs
According to the Medical Insight report, the global market for non-invasive and minimally invasive medical aesthetic devices reached $8.4 billion in 2016, and is expected to reach $13.9 billion in 2021, at an annualized compound growth rate of 10.5%.
Meanwhile, global direct sales revenue for energy-sourced medical aesthetic devices is expected to grow from $2.7 billion in 2016 to $4.4 billion in 2021, at an annualized CAGR of 10.4%.
The energy-sourced medical aesthetic devices market was the largest segment for medical aesthetic devices in both 2014 and 2016, and is expected to remain a fast-growing segment through 2021, making the industry's pace of growth in the coming years not to be underestimated.
The ongoing mergers and acquisitions and consolidation period that the industry is undergoing will lead to further intensification of competition in the industry, which has already formed an oligopolistic landscape led by Apax Partners, El.En.com, XIO, Fosun Pharma and Hologic.
In March 2017, Cynosure Candidate, with the largest global market share, was acquired by Hologic for $1.65 billion;
In April 2017, Zeltiq Aesthetic, with the second largest market share, was acquired by Allergan for $2.48 billion;
The third largest market share of Syneron was acquired by Apax Partners with a proposed fund in July 2017;
Lumenis, with the fourth largest market share, was acquired by XIO Group for $510 million back in October 2015
Sisram is ranked as the No. 5 global provider of medical aesthetic devices.
Fosun Pharma set up a Sisram subsidiary in Israel in 2013, mainly to prepare for the acquisition of Alma, an Israeli medical aesthetic device, and in May of the same year, Fosun Pharma successfully acquired Alma through Sisram.On September 19, 2017, Sisram was listed on the main board of the Hong Kong Stock Exchange.
There are no less than a hundred laser medical and cosmetic devices in China, and the market shows a competitive pattern of overall fragmentation and gradual concentration.
From the point of view of market share, the main foreign-funded giants and a small number of dominant local enterprises, the United States, Israel, Germany and other developed countries in the laser medical and cosmetic equipment industry started earlier, formed a more mature industrial chain, a large number of products are exported to countries around the world.
At present, the mainstream laser medical equipment manufacturers active in China are Israel Fitton (Alma), China Qizhi Laser, the United States of America (Lumenis) and the United States of America (Cynosure), the European Star (Fotona), Syneron (Syneron), the Chinese Peninsula Medical, China Shenzhen GSD, etc., and these products occupy our country. The vast majority (90%+) of the middle and high-end market in the laser medical and cosmetic equipment industry, including public hospitals and large chain cosmetic surgery hospitals.
Local advantageous enterprises have different levels of product independent research and development capabilities, product quality and imported products is gradually narrowing the gap, market share gradually increased, and the formation of imported products to accelerate the replacement.
Of course, the market is also filled with a large number of small and medium-sized laser medical equipment manufacturers and a large number of life beauty equipment manufacturers, mainly small and medium-sized private beauty salons, private clinics and a large number of professional beauty salons as the main target customers.
This kind of enterprises, due to the general late start, less accumulation of technology, subject to the high threshold of the medical equipment industry itself, its products are difficult to enter the hospitals surrounded by foreign and local advantageous enterprises in the high-end market, mainly concentrated in the middle and low-end medical market and the life of the beauty market, and the level of profitability obtained is relatively low.
Mixed fish and dragons, competing for services and marketing programs
In China, black clinics are still flooding the market in large numbers.In May 2017, seven national ministries and commissions issued a document to carry out a one-year special action to crack down on illegal medical beauty, cracking down on the practice of medicine without a license, standardizing the behavior of medical beauty services, as well as the illegal production and sale of medicines and medical equipment, and at the same time seriously rectifying the illegal medical beauty training. Seriously investigate and deal with illegal advertising and Internet information.
Laser medical equipment brands are becoming more and more popular in the market, but plastic surgery or photoelectric treatment, not only need good instruments, but also need the doctor's skills, clinic services, etc., so the medical beauty itself technical content and cost is not low.
For the device, the original factory, then, knowledge training, operation training and other related knowledge will be more abundant and frequent; if it is an agent, then, in these aspects not quite keep up, after all, in the equipment of the more advanced iteration on the timeliness is also slightly lacking. But the agent's cost to the store is lower, less pressure.
The current optoelectronic device market is mainly the following status quo and problems:
Brand competition is fierce
The upstream manufacturers of competition is very intense, and even the emergence of a variety of imitation manufacturers, copycat manufacturers, cottage manufacturers, the upstream enterprise some impact.
But it is reassuring that the industry's technical barriers are still very high, and consumers and businesses are increasingly capable of recognizing genuine products, and with the deepening of the popularity of patient education, the ability to identify them has increased.
Product types, in addition to the more mature skin category, in terms of efficacy and safety have also achieved good results, for weight loss, shaping aspects of the new technology, but also gradually become popular, and will continue to improve the safety of its treatment.
In addition, the mainstream laser medical equipment manufacturers, in addition to the continuous updating and upgrading of equipment, will be combined with the Internet and cloud technology, the launch of ancillary products, mainly for the market accounted for the main body of the small medical beauty institutions, so that they can have a better choice.
So, in addition to group customers, tertiary hospitals, some vendors will also develop their own business to open up the clinic's doctors individual customers.
Medical device manufacturers generally face the risk of regular renewal and registration of production qualifications. Increasingly stringent industry regulation has increased the difficulty and uncertainty of new product registration, the national medical device regulatory authorities on the identification of product technology time and approval cycle may be longer, manufacturers need to be patient to polish the product and technology, hastily immature technology to the market, for the brand may be a devastating blow.
Compete after-sales service
Devices on the channel, most of them still take the model of the agent, a few are directly. The big distribution companies will continue to expand through mergers and acquisitions to reach a 25%-40% market share in a certain regional market, which is a must for any distribution company to rise in the world.
Customers do not just buy instruments and equipment, after-sales service is the real embodiment of competitiveness, large instrument manufacturers are configured with the original assessment of certified medical level clinical staff, build standardized service processes, understand and assess the actual operation of the clinic, tailored to the development of a personalized marketing and promotion programs, to provide the transformation of medical services.
After the introduction of the equipment, through the tour and lecture rounds in the form of training, to inform customers how to use it, how to maintain it, and how to use the technology to better use the body of the beauty seekers, to bring better treatment effect to the consumer, this aspect of the requirements are actually getting higher and higher, the head of the equipment manufacturers of the technical difference is not particularly large.
Particularly for the current medical beauty offline institutions accounted for the majority of small and medium-sized clinics, operators will be very important to the after-sales service before considering the purchase of equipment, so in the choice of after-sales service as the primary criterion, and secondly, the after-sales service is timely, whether to solve the problem of whether the comprehensive and other factors are a measure of after-sales service standards, so in addition to the function of the equipment itself, the importance of the other levels of service, the degree of service, is to determine the competitiveness of the market, the head of the equipment manufacturers. The degree of market competitiveness is to determine the strong conditions.
Downstream industrial layout
Medical beauty in the Chinese market is sinking from the first and second tier cities to the third and fourth tier cities, life beauty and black clinic customers are slowly turning to the medical beauty, this trend also shows to some extent that the user is more in pursuit of medical beauty to bring the beautiful effect.
How to penetrate into more regions tests the strength of manufacturers. Some device manufacturers have increased the layout of the downstream business, to improve the overall industrial chain system from R & D, manufacturing to domestic and international marketing, or direct investment in hospitals, especially maternity hospitals, the manufacturers themselves have postpartum repair or intimate plastic surgery devices, can realize a seamless connection and diversion.
Focus on key companies
Alma (Feidun)
Alma is the world's leading supplier of energy-sourced medical aesthetic devices, with independent design, development and production capabilities, and utilizing its own innovative and proprietary technologies.
The Company's flagship products include: the Soprano line, which is primarily used for hair removal; the Harmony line, a versatile multi-application platform that can be used for up to 65 FDA-approved indications; the Accent line, which is primarily used for body contouring and skin tightening, all of which are part of the medical aesthetic product line; and FemiLift, a minimally invasive medical aesthetic device for treating a wide range of women's issues (e.g., intimate aesthetic treatments). a minimally invasive medical aesthetic device for the treatment of a wide range of female problems (e.g., intimate aesthetic treatments).
In addition, the Company offers lifestyle aesthetic product lines such as Rejuve and SPADEEP.
In May 2013, Fosun Pharma successfully acquired Alma through Sisram. on September 19, 2017, Sisram was listed on the Main Board of Hong Kong Stock Exchange.
Alma has been the largest supplier of energy-sourced medical aesthetic devices in the mainland China market (excluding Hong Kong, China, Macau, China and Taiwan, China) based on 2016 revenues.In 2017, China market revenues accounted for 20.6% of the overall revenues.
Sisram sells through direct sales and distribution. In the United States, Canada, Germany, Austria and India, it sells primarily directly to medical aesthetic organizations, while in the rest of the world, the Company sells primarily to distributors, who purchase the Company's medical aesthetic devices and then sell them to medical aesthetic organizations that are their customers.
In 2017, the Company's total revenue increased by 15.9% to $136.9 million compared to 2016. Profit before tax and profit attributable to owners of the parent amounted to $15.8 million and $11.0 million, an increase of 33.4% and 37.2%, respectively, from 2016.
The vast majority of the company's revenue came from its medical aesthetic product line, which includes its flagship non-invasive medical aesthetic devices such as the Soprano, Harmony and Accent lines, as well as the Aesthetic Precision line and certain other medical aesthetic devices, which accounted for $101 million, or 73.9% of total revenue.
For its 2018 plans, Sisram will look to expand its sales force and build out its other direct sales businesses, and it is looking for opportunities in cosmeceuticals, stem cells and PRP, as well as joint ventures and acquisitions with minimally invasive medical device companies. The partnership with IBSA, a leading Swiss pharmaceutical company, is one example of such a joint venture.
At the same time, Sisram intends to invest its research and development resources in investigating the interactions between energy sources and pharmaceuticals, as well as in developing products and programs that best utilize the results of the Company's research.
Sisram intends to build Alma into a consumer brand through a B2C-focused rebranding process, with the goal of driving bottom-up demand and expanding business opportunities. In addition, Sisram also expects to further implement and expand its IoT technology.
Qizhi Laser
Qizhi Laser, located in Wuhan, is an optoelectronic medical aesthetic solution provider integrating research and development, production, agency and sales, and has undertaken more than 10 national and local key optoelectronic medical projects. The main products include laser medical and cosmetic equipment for beauty and urology.
As of the first half of 2017, the company has obtained 24 medical device product registration certificates, the number of which is ahead of the industry, 44 patents (of which one is a U.S. patent), ISO9001 and ISO13485 quality system certification, and some of the products have passed the European Union CE certification.
As of the first half of 2017, the company realized operating income of 87,030,600 yuan, net profit of 21,169,700 yuan.
At present, the company has an independent and complete research and development, production, purchasing and sales system and a mature business model, adopting the procurement mode of "order-based plus safety stock, on-demand procurement". The company adopts the "order-based plus safety stock, on-demand procurement" procurement model. Production mainly adopts the order-based production method, but also according to the market forecast, the production of some products in stock to meet the requirements of the basic inventory.
Chizi Laser's sales are based on direct sales and distributors, and some of its export products are sold through distributors. Its customers mainly include public hospitals at all levels, private medical institutions, medical equipment distributors and beauty salons.
Lumenis
Lumenis was first established in Silicon Valley in 1966, while ESC Medical, a strong light manufacturer, was founded in 1991.
In 2001, Cosmedic and ESC Medical merged to form a light and medical laser company, renamed Lumenis, with manufacturing facilities in the United States and Israel.
Techmedic entered China in 1992, with products in the medical fields of aesthetics, ophthalmology and urology, etc. Techmedic has always attached great importance to clinical and academic research, as well as providing value-added services such as professional training for customers.
The LightSheer Duet Moonlight Vacuum Painless Rapid Hair Removal Device, M22 King's Heart OPT Photorejuvenation Device and UltraPulseTM EncoreTM UltraPulse CO2 Fractional Skin Resurfacing Device, the three major products of Kemin, are especially popular in the Chinese market.
In October 2015, XIO Group, a multi-billion dollar global investment organization, completed its $510 million acquisition of Lumenis.
Headquartered in London and with offices in Europe, North America and Asia. It specializes in M&A investment opportunities globally, and will follow up by actively expanding the growth potential of its portfolio subsidiaries in China.
Following the financial backing of XIO Group, Lumenis acquired Pollogen in November 2015 to expand its medical aesthetic device footprint.
In terms of market strategy, in the future, Cosmedic will strengthen the development of laser treatment systems, laser aesthetic technology (hair growth, treatment of fox odor, contouring and weight loss, etc.), lifestyle aesthetic product's as well as portable home laser aesthetic devices.
Peninsula Medical
Peninsula Medical Group was founded in 2008, is a collection of international trade, product research and development and marketing services as one of the medical aesthetic devices national high-tech enterprises, for nearly 1,000 dermatology or plastic surgery and cosmetology department to provide products and services, with domestic invention patents 10, international invention patents, 4, utility model patents, 30 patents, 13 patents, 12 software copyrights. We have 10 domestic invention patents, 4 international invention patents, 30 utility model patents, 13 appearance patents, 12 software copyrights, 39 trademark registrations and 11 medical device registration certificates.
In 2013, the Group began to carry out industry-academia-research cooperation with Zhao Guang's team from the Air Force General Hospital, as well as cooperating with a number of clinical teams from Shanghai Nine Hospitals, Xijing Hospital, Anzhen Hospital, and Jiangsu Provincial Hospital of Traditional Chinese Medicine.
Currently the company is in a period of grueling R&D investment, with LiTi Gold Micro-sculpture and Tornado series of popular products.
Cynosure
Founded in 1991 and headquartered in Boston, Massachusetts, U.S.A., Cynosure was listed on the NASDAQ in 2005, and currently provides product services and technical support to more than 60 countries around the world through wholly owned subsidiaries and distributors.
Its wholly-owned acquisitions of two laser companies, ConBio and Palomar, in 2011 and 2013, and in March 2017, Hologic, a leading global medical and diagnostic company, announced that it had completed its acquisition of Xenosure at a price of $66 per share.
Huge development investment, leading theoretical research, more than thirty items of U.S. patented technology and perfect after-sales service ensures the high market share and competitiveness of Sanosu products.
In 2012, Cynosure launched the world's first picosecond laser with 755nm wavelength picosecond and laser device - PicoSure 755nm Honeycomb Picosecond Laser with unprecedented light shock wave (PressureWave?) treatment, from then on, the global medical aesthetic industry entered the picosecond laser industry. , the global medical aesthetic world into a new era of picosecond treatment.
Fotona (Eurostar)
Fotona was founded in 1964 and is headquartered in Deggingen, Germany, with a marketing center in the U.S. and manufacturing sites in Slovenia, Denmark and Germany, among other EU countries.In April 2017, Handel Capital acquired Fotona Eurostar Laser.
Fotona's medical lasers mainly include seven ace products: the FotonaQX Max Spot King, the "Shuttle" fractional erbium laser, the RuiLi non-invasive private laser, the FOTONA 4D Extreme Sculpting and Lifting System, the Dual Fractional Super Platform, the Tightlase non-invasive fat reduction laser, and the Red Vanguard Vascular Treatment Laser. Each of the above series of products has been fully certified by the US FDA, Europe CE and China SFDA.
As of 2015, Fotona has nearly 100,000 lasers in operation in countries around the world.
In 2004, Fotona Eurostar Laser officially landed on the Chinese market, established its China headquarters in Shanghai and offices in Chengdu, Beijing and Guangzhou, and has successively set up laser centers in the General Hospital of Guangzhou Military Region, the Ninth People's Hospital affiliated to Shanghai Jiaotong University, the Plastic Surgery and Laser Center of Xijing Hospital, Plastic Surgery and Cosmetic Surgery Center of the First People's Hospital of Foshan City, and the Aesthetic Laser Center of the General Hospital of the Navy in Beijing, among other famous medical institutions. Fotona European Star Clinical Training and Exhibition Center has been established in famous medical institutions such as Guangzhou Military General Hospital, Shanghai Jiao Tong University Affiliated Ninth People's Hospital, Xijing Hospital Plastic Surgery Laser Center, Foshan First People's Hospital Plastic Surgery Center, and Beijing Naval General Hospital Aesthetic Laser Center, etc., to provide Chinese customers with cutting-edge laser technology and fast after-sales service.
Syneron
Syneron was founded in 2000 and listed on NASDAQ in 2004, with R&D and manufacturing operations in Israel and the U.S. The company's products are marketed under the Syneron, Candela, and CoolTouch brands, which are dedicated to solving the problems of body contouring, hair removal, wrinkles, and skin improvement. The company's products are marketed under the Syneron, Candela and CoolTouch brands, which address body shaping, hair removal, wrinkle removal, skin improvement and other issues.
The hotter device ultra-picosecond laser PicoWay is a dual-wavelength device with leading pulse technology, its pulse width is 40% shorter than that of the same type of picosecond laser devices on the market, and 170% shorter than that of the traditional laser pulse. The device has been certified by CDFA in China and is suitable for all types of skin.
Syneron has now been acquired by Apax Partners, which has extensive experience in the healthcare services sector, having successfully invested in GHG, the largest privately owned hospital group in the UK, Capio, a pan-European hospital group, and ApolloHospitals, the largest privately owned hospital group in India.
In 2016, Syneron and Huaxi Bio entered into a strategic partnership, under which Huaxi Bio will be granted the exclusive right to operate Syneron's new Adeline product in China, which includes marketing, pipeline sales, and after-sales service. The product is derived from Syneron-Candela's patented elōs? technology and offers a wide range of applications such as skin tightening, smoothing and rejuvenation, hair removal, mole and spot removal for the body and face.