Events
On January 18, 2022, the “guidelines for standardized operation of medical and beauty institutions in 2022” (hereinafter referred to as the “guidelines”) sponsored by China plastic and Beauty Association was officially released, and the “three formal medical and beauty platforms” were officially launched.
The main contents of the 2022 guidelines for standardized operation of medical and beauty institutions include the release background and significance, summary and analysis of adverse events of medical and beauty institutions, suggestions on standardized operation and management of medical and beauty institutions, etc.
“Three formal medical beauty platforms”（ http://www.caparz.cn./ ）It focuses on the medical and beauty industry information such as regular hospitals, regular doctors, regular products and project prices, and is committed to promoting the transparency of medical and beauty industry information and serving medical and beauty consumers and enterprises in the industry.
Comments
Why is this matter worthy of attention? 1) Epidemic situation and policy are important factors affecting the terminal consumption and secondary market performance of the medical and American sector. For the first time, the guide makes a detailed analysis on the impact of epidemic situation, competition pattern, regulatory policies, adverse events of medical and American institutions from the perspective of industry associations. 2) Referring to the experience of mature medical and American market, industry self-discipline organizations, health management departments and food and drug supervision departments jointly constitute a link for the standardized and healthy development of medical and American market; For example, there are many American Medical and American industry associations, which undertake the responsibilities of medical and American consumption data collection and analysis over the years, terminal organization doctor training and certification, market education and so on.
The duration of the epidemic has lengthened, and the United States has moved from “retaliatory consumption” to “stability”. 1) September 2020 to may / June 2021: the business volume of medical and American institutions increased explosively. Behind this is the strong release of the potential demand for medical beauty suppressed by the epidemic, as well as the restrictions on overseas travel and overseas consumption caused by the epidemic prevention and control, which led to the return of overseas consumer groups and accelerated the improvement of the scale of the medical beauty market. 2) The second half of 2021: medical and American consumption is stable. Local sporadic epidemics have led to community closure and restricted social consumption scenes of consumers, and the number of cosmetic surgery operations has fallen precipitously; At the same time, after the impact of the epidemic on all aspects of the economy, it reacts on consumption, reducing the willingness to consume and reducing the consumption of services such as medicine and beauty. With the extension of the duration of the epidemic, the impact of this factor on consumption becomes more and more prominent. Overall, in 2021, the medical and American consumption basically got rid of the negative impact of the epidemic in 2020 and entered the stage of gradual recovery. At the same time, the tension of the international supply chain caused by the epidemic also caused a small-scale increase in the cost of medical and American materials and equipment to a certain extent.
In the post epidemic era, improving transparency and compliance has become an inevitable choice, and resisting disorderly price competition is expected to become a consensus. 1) Compliance management: after the epidemic, consumers’ awareness of sharing has been strengthened, and the sharing of medical beauty service experience has become the main way of information dissemination in the medical and beauty industry. Consumers’ information gap is becoming smaller and smaller, and it is easier to obtain the word-of-mouth information of medical and beauty institutions. The dissemination of violations and adverse events of institutions has become easier and easier, which also means that the non-standard cost of medical and beauty institutions is getting higher and higher, and the compliance management Standardized operation will become the inevitable choice of medical and aesthetic institutions. 2) Orderly competition: competition among medical institutions is still fierce, and the introduction of live broadcasting and e-commerce sales has also triggered price competition in some regions. In this case, the voices of “returning to medical treatment”, “differentiated management” and “shaping technical competitiveness” in the industry have become stronger, and some medical beauty institutions have actively carried out attempts in this regard.
Medical beauty has entered the era of “strong supervision”, and 2022 is a key year for “standardizing medical beauty”. 1) Reasons for Industry chaos: economic growth and the improvement of consumption capacity drive the rapid development of medical and American demand, which is much faster than the renewal of industrial management policies and the conscious and standardized operation of medical and American enterprises. Under the temptation of excess profits, there are a large number of “black medical beauty” and “parallel fakes”. Medical beauty rights protection events or negative news are often seen in the public media. 2) Impact of industry chaos: the development of the medical beauty industry has been accompanied by the shadow of “non-standard industry” for a long time. On the one hand, it increases consumers’ concerns about choosing medical beauty services, which limits the development of the medical beauty industry. On the other hand, the low illegal cost, unfair and opaque competitive environment also causes the current situation of “bad money expelling good money” in the industry. 3) Policies have been supplemented one after another: since 2017, medical and beauty chaos has attracted great attention of relevant national departments. Various policies and regulations have been intensively issued and illegal medical and beauty rectification actions have been carried out for many times. The pace of supervision has been significantly accelerated in 2021 (see the table below for specific policies); Systematic supervision and rectification work has been carried out, which not only shows the determination of relevant competent departments of the industry and the industry has entered the era of “strong supervision”, but also gives the medical beauty industry an opportunity for standardized, sustainable and prosperous development. Standardized operation will become the basic requirement of medical beauty Enterprises.
Case analysis of illegal operation: focus on false project publicity, illegal medical American loan repayment, exaggerated effect, doctor technology, medical work attitude and other links. The public opinion information center of China plastic and cosmetic association used the network big data platform to collect and sort out the negative medical and cosmetic information disclosed on the whole network in 2021, and summarized a total of 787 typical cases of adverse events, involving 680 medical and aesthetic institutions, covering 10 common and standardized weak links in three aspects of operation and management, As well as 46 typical violations and common misconduct with certain commonalities, the guide puts forward targeted suggestions for each type of problem (see the chart below for details, which will not be repeated here).
Investment advice. Weak consumption and policy changes are the core contradiction in the market performance of the medical and American sector. Since 2021, the policy has focused on guiding “safe and orderly supply, reasonable and appropriate demand”. From the perspective of industry associations, the medical beauty industry has entered a strong regulatory era, which not only shows the determination of relevant competent departments of the industry, but also gives the medical beauty industry an opportunity for standardized, sustainable and prosperous development. It is expected that under the regulatory policy norms, association organization guidance and continuous improvement of industry transparency, medical and American institutions and medical and American market are expected to usher in standardized and healthy development.
For the medical beauty sector, the industry’s long-term investment logic remains unchanged. Multiple forces such as regulatory fill, epidemic impact, consumer rationality and the launch of the association’s “three formal medical beauty platforms” will jointly accelerate the substitution of the compliance market for the illegal market. Legal compliance institutions and upstream leading manufacturers are expected to benefit from the compliance process and maintain the industry’s “recommended” rating. In terms of individual stocks, the core recommendations are Imeik Technology Development Co.Ltd(300896) (strong profitability, high growth, scarcity of targets and bottom valuation), Yonghe medical (the leader of hair integrated medical service, store expansion and hair ecological landing open up growth space), and it is suggested to pay attention to medical and beauty related enterprises Huadong Medicine Co.Ltd(000963) , Shanghai Haohai Biological Technology Co.Ltd(688366) , Sihuan medicine, Lancy Co.Ltd(002612) .
Risk warning: regulatory policy changes beyond expectations; The epidemic situation worsened further, impacting terminal consumption; Medical accident risk; Focus on the company’s performance less than expected; International experience is not completely reproducible, and relevant data and materials are only for reference; Medical technology, consumption habits and other uncertainties.
