Summary of the Medical Aesthetic Industry Conference Call Industry Overview - The medical aesthetic industry has shown a GMV (Gross Merchandise Volume) growth of 13% year-on-year, reaching 450 million yuan for the period from January to November 2025, although the growth rate has slowed compared to the pandemic period [1][2] - The revenue from the Double Eleven shopping festival accounts for approximately 5% of the total revenue in Q4 [4] Key Insights - **Customer Spending Trends**: - The average transaction value for medical aesthetic products has significantly decreased, with an overall decline of 4% year-on-year. Non-surgical procedures, such as laser treatments and injections, saw a decline of 8-9%, while surgical procedures experienced a stable growth of 2% [1][5] - The long-term trend indicates a continuous decrease in average transaction value, particularly for injection products, which have seen a decline of over 8% [5][6] - **Market Dynamics**: - The decrease in product prices is attributed to increased information transparency, stricter regulations leading to product homogenization, and a rise in new products from upstream manufacturers, which lowers procurement costs [6][7] - Younger consumers are increasingly favoring lower-priced options, and demand from second and third-tier cities has contributed to the decline in average transaction value [6][7] - **Consumer Demographics**: - The proportion of male consumers has increased but remains low at around 5%. The share of younger consumers (ages 18-22) has decreased, while the proportion of consumers aged 35 and above has increased, showing a preference for mid to high-end services and higher repurchase rates [7] - Combined treatments, such as using laser devices alongside injections, have become the norm, reflecting a trend towards package sales [7] Financial Performance - The company has experienced a slowdown in revenue growth, with top-tier institutions reporting a year-on-year revenue increase of about 6% and a net profit margin maintained between 8% and 10% [3][11] - Customer traffic has increased by 12% year-on-year, but the average transaction value has decreased by approximately 5% [11] - The overall revenue growth for the year is expected to be no more than 10%, indicating a shift towards stable growth in the industry [3][11] Competitive Landscape - The market for various medical aesthetic products has become increasingly competitive, with mid-sized and chain clinics experiencing a general slowdown in growth. The overall industry is still growing at over 5%, but the explosive growth phase has ended, leading to a focus on refined operations [13] - The collagen market has seen significant growth, particularly for new specifications introduced by companies to extend product life cycles, despite increased competition from new entrants [19] Inventory Management - Medical aesthetic institutions typically maintain an inventory cycle of about 10 to 15 days, with a slight increase in inventory towards the end of the year to meet peak business demands and supplier requirements [23][24] Conclusion - The medical aesthetic industry is undergoing significant changes, with shifts in consumer behavior, pricing pressures, and competitive dynamics. Companies are adapting their strategies to maintain profitability and market share in a more regulated and competitive environment.