Cos­metic surgery: quest for cus­tomers, in­vestors

China Daily (USA) - - TOP NEWS - By ZHU WENQIAN zhun­wen­qian@chi­nadaily.com. cn

The scale of the cos­metic surgery sec­tor is surg­ing in China, with more and more movie stars and young con­sumers hav­ing the pro­ce­dures. More in­ter­net star­tups and O2O plat­forms have started to join the sec­tor.

The out­put value of the sec­tor reached 535 bil­lion yuan ($81 bil­lion) in 2014 and is ex­pected to top 1 tril­lion yuan in 2019, with an an­nual growth rate of 15 per­cent, ac­cord­ing to a re­port by In­dus­trial Se­cu­ri­ties this year.

Still, pri­vately owned agen­cies dom­i­nate the mar­ket, and it has been dif­fi­cult for them to be­come strong house­hold names or brands. Un­known in­sti­tutes have to com­pete for cus­tomers by spend­ing big money, usu­ally 60 to 70 per­cent of their prof­its, on ad­ver­tis­ing.

“In­terne t plat­forms emerged as a new way for cos­metic surgery in­sti­tutes to at­tract cus­tomers, as tra­di­tional ad­ver­tis­ers and the search en­gine Baidu Inc are cost­ing them too much,” said Lou Jun, vice pres­i­dent of China-fo­cused ven­ture cap­i­tal funds IDG Cap­i­tal Part­ners, news por­tal jiemian.com re­ported.

Lou last year led the in­vest­ment in mdl.com, an on­line com­mu­nity and e-com­merce plat­form for peo­ple to learn and share cos­metic surgery re­lated in­for­ma­tion.

“Such an on­line-to-off­line plat­form about cos­metic surgery will help the in­dus­try to cut its ad­ver­tise­ment and pro­mo­tion out of Baidu.com. This is like what Dian­ping.com, China’s big­gest on­line food ser­vice rat­ing web­site and a key in­for­ma­tion provider, did with the cater­ing busi­ness,” Lou said.

In China, over 80 per­cent of cos­metic surgery con­sumers are women, and those aged be­tween 18 and 30 ac­count for over 60 per­cent of the total, ac­cord­ing to an in­dus­try re­port.

The O2O model, de­spite a rather small busi­ness unit in the cos­metic surgery in­dus­try, is see­ing some front run­ners in terms of their fund­ing sizes and over­all rank­ings. SoYoung.com, gmei.com, yue­mei.com and mdl.com are the top four O2O plat­forms in the mar­ket.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.