Core Insights - The Chinese medical beauty industry is transitioning from "wild growth" to "quality stratification," with rapid technological advancements, competitive platforms, clearer regulations, and increasingly discerning consumers [1] - New Oxygen (NASDAQ: SY), the first internet medical beauty stock in China, has reached a significant milestone with 31 chain stores, becoming the largest light medical beauty chain brand in China [1] - The company is exploring whether its business model shift is a tactical window or a paradigm shift, questioning if the high gross margin and low net profit anomaly in the medical beauty industry can be fundamentally changed [1] Group 1: Company Overview - New Oxygen's chain business revenue became the largest source of income for the group in June [1] - The company aims to expand to over 1,000 stores in the next 8 to 10 years, covering cities from first to fifth tier [26] - The medical beauty market in China is highly fragmented, with over 20,000 institutions, and New Oxygen's 31 stores represent a significant achievement in a traditionally decentralized industry [26][27] Group 2: Business Model and Strategy - New Oxygen's strategy is to integrate the medical beauty industry's supply chain vertically, addressing both upstream and downstream needs [34] - The company positions itself as a "Sam's Club" for medical beauty, targeting middle-class consumers with high-quality, cost-effective services [22][23] - The focus is on standardizing basic medical beauty procedures, allowing less experienced doctors to perform high-volume, standardized treatments [24][25] Group 3: Market Position and Consumer Insights - The target demographic for New Oxygen includes high-earning, educated women aged 30 to 40, who are expected to spend around 15,000 yuan annually on medical beauty [22] - The company believes that the medical beauty industry in China will take 3 to 5 years to become affordable for the working class, indicating a focus on wealthier consumers for the time being [21] - New Oxygen's marketing emphasizes the empowerment of women through beauty, reflecting the founder's belief in the value of self-expression and aesthetics [18] Group 4: Challenges and Future Outlook - The transition from a platform model to direct competition with medical beauty institutions has led to conflicts with existing partners, highlighting the risks of self-revolution [31] - The founder acknowledges that the company has not yet achieved its goal of becoming a widely recognized brand, indicating room for growth and improvement [39] - The company aims to enhance consumer experience by controlling the entire service delivery process, addressing the challenges of consumer choice in a crowded market [32][33]