Summary of Conference Call on Medical Aesthetics Industry Industry Overview - The medical aesthetics industry experienced fluctuations in data and trends from the second half of last year to January this year, with overall GMV and revenue slowing down after the second quarter, particularly showing negative growth in the third quarter, but recovering in the fourth quarter [1][2] - The growth in customer traffic is primarily driven by returning customers, with an increase in the proportion of new customers, especially among the younger demographic [2][4] Key Insights - **Revenue Trends**: The industry saw a 5% revenue growth in 2025 compared to 2020, with a 9% increase in customer traffic, although the average transaction value decreased by 4% [3][21] - **Quarterly Performance**: Q4 showed significant revenue growth of 10%, compensating for the low growth in Q2 and Q3, with January's revenue growth exceeding 10% [3][21] - **Customer Composition**: The proportion of returning customers increased from 52% to 58%, with new customer growth driven by new product launches and promotional activities [5][25] - **Product Growth**: New products, particularly botulinum toxin and collagen products, especially recombinant collagen, show growth potential [2][21] Tax Policy Impact - The adjustment of the VAT policy, with medical aesthetics services now subject to a 6% VAT, has impacted industry costs, although institutions are adopting strategies to mitigate this burden [10][28] - The termination of the medical aesthetics tax refund policy in South Korea is expected to benefit the domestic market, as it may encourage consumers to choose local services over traveling abroad [11][29] Product Line Analysis - **Botulinum Toxin Sales**: Sales of botulinum toxin products grew by 25% in 2023 compared to 2022, with a projected growth of 10% in 2025 [6][27] - **Collagen Products**: Sales of collagen products showed varied performance, with some brands experiencing significant growth, such as a 55% increase in sales for certain products in 2025 [12][29] - **Market Acceptance**: New botulinum products are well-received in the market, with institutions willing to adopt them due to their cost-effectiveness and ease of use [8][27] Competitive Landscape - The competition among leading medical aesthetics institutions is intensifying, with varying revenue trends observed among them [4][21] - The market is seeing a trend towards consolidation, with expectations of increased concentration in the industry as smaller institutions may struggle to compete [18][33] Future Outlook - The industry is expected to continue evolving with a focus on light medical aesthetics and increased institutional concentration, prompting companies to adjust their business strategies accordingly [2][21] - The introduction of new products and promotional strategies is anticipated to drive growth, with a target of achieving a 15% growth rate in 2026 [17][31] Additional Considerations - The acceptance and market potential of PDRN salmon needle products are being closely monitored, with expectations for rapid growth following regulatory approvals [14][30] - The overall market dynamics indicate a shift towards more standardized services and data-driven customer management, which may further influence the competitive landscape [33]