With the progress of social economy, when the basic needs of "food, clothing, housing and transportation" are met, people will pursue higher-level spiritual needs, such as improving their external image in terms of aesthetics. As one of the most intuitive external manifestations, hair has attracted more and more attention.

However, hair loss, itching, dandruff, folliculitis and other hair problems often haunt many people, so the "head economy" that provides hair diagnosis and treatment services also arises at the historic moment. The author has noticed that barley transplant recently coincides with the delivery of forms to the Hong Kong Stock Exchange. We might as well take this opportunity to take a look at the texture of this company.

Broad market space and optimistic development prospects

From the market point of view, China's hair diagnosis and treatment service industry is undoubtedly a huge capacity and high-speed growth of a good track.In the past few years, its market size has increased from 8.3 billion yuan in 2016 to 23.8 billion yuan in 2021, with a compound annual growth rate of 23.5%, making it a huge market of 10 billion yuan, according to the cautionary consultancy report.Moreover, the growth rate in the next five years is still considerable, and the market scale will continue to expand, with an annual compound growth rate of 24.5% expected to increase to 71.2 billion yuan in 2026.

Figure 1: market scale of hair diagnosis and treatment services

Specifically, the basic logic to prop up China's hair diagnosis and treatment service market is that the base of hair loss population is huge and the penetration rate is very low.According to statistics, by the end of 2021, there are 267 million people with hair loss in China, and this figure is expected to rise to 343 million by the end of 2026. At present, the total population of the United States is only 334 million, and the scale of hair loss groups in China can be seen to catch up with the total population level of a large country.

Not only that, China's hair diagnosis and treatment service industry is still in a relatively early stage, the future development space is very broad. According to the proportion of hair loss patients actually undergoing hair transplant surgery, the penetration rate of hair transplant service in 2021 is only about 0.25%, and that of curing service is about 0.81%.It is not difficult to find that the market prospect of hair diagnosis and treatment service in China is very broad, which can be described as a sunrise industry.

As the saying goes, if a company is in an industry with a larger market scale, it will be more likely to achieve rapid growth.And barley hair transplant is in a good track such as hair diagnosis and treatment services, will usher in more market opportunities, the future development prospects are also very optimistic.

The advantage of integrated service is obvious, high quality to create a benign closed loop.

The hair diagnosis and treatment service industry has also undergone some new changes in the process of rapid development, and it is constantly developing in the direction of advanced technology change and integrated service in recent years. Therefore, companies that seize the pulse of the market and comply with the development trend of the industry will make great progress and are expected to grow rapidly.

As a head enterprise in the middle and high-end hair diagnosis and treatment service industry, barley hair transplant takes the lead in the application of the most advanced hair transplant technology. It is understood thatThe company is the first medical group to introduce microneedle hair transplant technology in China.. Moreover, barley hair transplant has creatively improved microneedle hair transplant technology to make it better applied to Chinese patients, and provide patients with more satisfactory hair transplant services, so as to establish a good reputation and give full play to the company's first-mover advantages. After years of development, barley hair transplant has achieved a very significant market position.The company has become the largest hair diagnosis and treatment service group in China's first-tier cities, accounting for 5.2% of the market share.

From the point of view of the business layout of barley hair transplant, because the population base of hair loss group in China is very large, in addition to the patients who really need hair transplant, there is more market demand for hair maintenance, so the market scale of the hair maintenance industry is particularly sizeable, which is a blue sea economy. The company is also targeting unmet demand in the curing market.Integrated hair diagnosis and treatment services, such as diagnosis, microneedle hair implantation and maintenance, can meet the diversified needs of patients at different levels.

According to the company's prospectus, the company's income from non-surgical hair fixation and hair maintenance has grown rapidly in recent years, which has become an important source of driving force for the company's performance growth.From 2019 to 2021, the income of this sector is 32 million yuan, 53 million yuan and 214 million yuan respectively, with an annual compound growth rate of 159.1%.

Figure 2: the company's income from non-operative hair fixation and hair maintenance

In addition, barley hair transplant also aims at the existing market pain points, to develop a sound standard diagnosis and treatment norms.The founding team of the company has a very deep understanding of the hair diagnosis and treatment service industry, and in 2021Formulated the "hair Transplantation Specification"To establish the technical standards of the industry and promote the standardized development of the industry.

It is precisely because barley hair transplant provides standardized, high-quality hair diagnosis and treatment services, companies are more likely to get the favor and choice of hair loss patients, and this in terms of data shows that the company has higher patient conversion rate and repurchase rate than its peers. According to the burning knowledge consultation reportThe referral rate of patients with barley hair transplants in 2021 was 20.2%, and the repurchase rate was as high as 50.5%, much higher than the industry average.

Thus it can be seen that barley hair transplant can not only provide a variety of service options, but also ensure the high quality of hair diagnosis and treatment services.The author believes that these competitive advantages such as advanced technology, good reputation and one-stop high-quality service will build a deep moat of barley hair transplant and form a positive closed loop for sustainable development.

Summary

From the point of view of investment, looking for high-growth tracks and companies has become the only way to invest in recent years, and more and more investors turn their attention to the leading enterprises in the subdivision field. The barley hair transplant, as a leading company in the industry, will gradually release its growth potential in the expanding hair diagnosis and treatment service market by virtue of multiple competitive advantages in the future, and will usher in greater development opportunities with the help of the capital market. it's worth paying attention to for a long time.