So-Young(US:SY) Mei Ri Jing Ji Xin Wen·2025-09-24 13:12Core Viewpoint - The medical beauty market in China is experiencing a "price war," initiated by the internet medical beauty platform New Oxygen, which has significantly reduced the price of its "Miracle Youth 3.0" product to 2999 yuan, aiming to disrupt the high-price cycle in the industry [1][3]. Group 1: Market Dynamics - New Oxygen's price reduction strategy is intended to shift the medical beauty industry from a "seller's market" to a "mass consumer" market, making compliant medical beauty services more accessible to consumers [1][5]. - The market for "Youthful Needle" treatments is rapidly expanding, with projections indicating that the B-end market size will reach 4.2 billion yuan by 2025, up from 500 million yuan in 2021 [3][4]. - The medical beauty consumer demographic is evolving, with 90% of sales now coming from working and middle-class women, indicating a shift towards a broader consumer base [7]. Group 2: Company Strategy - New Oxygen's CEO, Jin Xing, emphasizes that the low-price strategy is crucial for eliminating "black medical beauty" practices by making compliant services affordable [1][6]. - The company has faced challenges with suppliers due to its aggressive pricing, leading to supply disruptions and demands from manufacturers to withdraw products from the market [4][5]. - New Oxygen's offline chain business has become a significant revenue driver, with a 426.1% year-on-year increase in revenue from this segment, surpassing online business for the first time [8]. Group 3: Financial Performance - In Q2, New Oxygen reported a 7% year-on-year decline in overall revenue to 379 million yuan, with a net loss of 36 million yuan, attributed to a decrease in the number of medical service providers on its subscription platform [1][8]. - The company's gross margin for its chain clinics was 24.3%, significantly lower than the industry average of over 50%, reflecting its low-margin strategy aimed at fostering a healthier operational model [5][6]. Group 4: Future Outlook - New Oxygen is actively working on supply chain integration by acquiring and representing key equipment and products, indicating a strategic move to gain control over its supply chain [9]. - The company plans to develop its own brand of medical beauty products, which will be used internally and sold to other institutions, further expanding its market presence [9].