So-young International Inc's updated prospectus reveals the data for the first quarter, which is also very interesting. The following four sets of data are worth paying attention to:

1. As of the first quarter of 2019, So-young International Inc realized revenue of 206 million yuan (US $30 million), an increase of 81.8% over the same period last year, and net profit of 45.9 million yuan (US $6.7 million), an increase of 49.9% over the same period last year. Revenue and profits continue to grow at a high speed.

2. The number of monthly active users (MAU) on So-young International Inc's mobile phone increased from 1.08 million in the first quarter of 2018 to 1.93 million in the first quarter of 2019, an increase of 78.7%.The number of paying households also increased from 68900 in the first quarter of 2018 to 127300 in the first quarter of 2019, an increase of 84.9 per cent.

3. The number of paid medical institutions on the platform increased by 37.4% from 1966 in the first quarter of 2018 to 2701 in the first quarter of 2019.The number of medical institutions paying for information services on the platform increased by 136.4% from 784 in the first quarter of 2018 to 1853 in the first quarter of 2019. The transaction volume of medical and beauty services promoted on the platform increased by 68.4% from 412 million yuan in the first quarter of 2018 to 694 million yuan in the first quarter of 2019.

4. As a part of So-young International Inc's science and technology revenue, the growth rate of information service income is higher than that of scheduled service income.In the first quarter of 2019, the revenue from information services has reached 143 million yuan.

Recommend sharp weapon

Two weeks ago, Uncle C wrote "A comprehensive analysis of So-young International Inc's listing in the United States: why appearance is so important to Chinese people", which sparked a lot of discussion. Some friends are curious about who is doing medical surgery, and some friends are curious about how big the market space for So-young International Inc is in the future.

In fact, Uncle C's post-90s colleagues have more right to answer than Uncle C. She said that the lunch break to do a picosecond laser, do a 20-minute skin freckle, this has become the daily routine of many young women.

In Uncle C's view, So-young International Inc's product form is like a "little red book" in the medical and beauty industry, attracting potential medical consumers through the "content + social" model, strongly recommending all kinds of medical and beauty projects, and through the "+ e-commerce" mode in the station. link users and medical institutions, so that users can achieve one-stop consumption.

At present, So-young International Inc has accumulated 3.8 million plastic diaries written by medical consumers on APP, including more than 7000 medical institutions and 25800 medical practitioners. On the whole, So-young International Inc covers a large proportion of the formal service providers in the domestic medical and beauty market.

So-young International Inc was established in 2013 to advocate "using science and technology to help beauty-loving women become healthy and beautiful", just in time for the medical and beauty market, with a total of five rounds of financing, totaling more than 1.5 billion yuan. After the successful listing, as the first stock of Midea, it will continue to expand its industry advantage.

How high is the industry barrier?

According to industry data, considering the number of APP downloads and user activity and other dimensions, So-young International Inc APP ranks first in the field of online medicine and beauty in recent years.

According to Analysys Qianfan data in December 2017, the total monthly launch times of So-young International Inc APP accounted for nearly 90% of the medical and beauty APP field, and the total monthly opening time accounted for nearly 84% of the market share. By May 2018, So-young International Inc's average monthly launch times and monthly use time were 7.6 times and 0.64 hours, respectively, which were 1.62 times and 2.0 times higher than those of the second place in the industry.

As early as 2017, with 114 million visits to APP and the website, So-young International Inc surpassed Real Self, the largest online medical community in the United States, which had about 108 million unique users in the same year.

These strong content flows and user stickiness have created new oxygen barriers in the eyes of investors, while helping So-young International Inc achieve leapfrog growth in revenue scale and profits.

According to its prospectus, So-young International Inc's total revenue in 2016 was 49 million yuan; in 2017, it jumped to 259 million yuan, a growth rate of 428%; in 2018, total revenue further increased to 617 million yuan, although the month-on-month growth rate slowed, but continued to increase by 138% compared with the previous year.

In 2018, So-young International Inc achieved a net profit of 55.08 million yuan, a sharp increase of 220% over the same period last year. The total transaction volume of medical and beauty services was 2.1 billion yuan, accounting for 33.1% of the total transactions of online medical and beauty services in the country that year.

The change of the cost structure of Medical Beauty Marketing

According to So-young International Inc's prospectus, information service fee and reservation service fee are So-young International Inc's two major sources of income. Among them, the information service fee refers to the advertising revenue So-young International Inc received from medical institutions, and the booking service fee refers to the commission So-young International Inc received from medical institutions through his e-commerce platform.

Of So-young International Inc's total revenue of 617 million yuan in 2018, the reservation service fee rose steadily to 202 million yuan from 115 million yuan in 2017, while the information service fee climbed to 415 million yuan from 143 million yuan in 2017.

Obviously, the increase in marketing investment in medical and beauty institutions is the main source of So-young International Inc's total revenue and profits in 2018, and this trend is likely to continue.

Throughout the entire domestic medical and beauty industry, marketing expenses are the largest expenditure of every private medical and beauty institution. Even if the gross profit margin is more than 50%, the net profit margin is only about 10%.

Medical and beauty institutions mainly attract consumers through outdoor advertising, television advertising, Baidu, Inc. search bidding, APP advertising and other ways. Subject to the "measures for the Administration of Medical Advertising", medical advertisements are not allowed to publicize the curative effect, do not involve medical technology or disease names, and so on. In the past, large medical and beauty institutions chose search bidding to carry out rough publicity and promotion.

Take China and South Korea plastic surgery as an example, the top two main suppliers in the 2015 annual report are Baidu, Inc., with a total purchase amount of 38.6744 million yuan, accounting for 60% of the annual promotion cost.

In recent years, with the rise of vertical social e-commerce and new media platforms, the favor of medical institutions for Baidu, Inc. began to loosen. In 2017, although Baidu, Inc. was still the top supplier of plastic surgery in China and South Korea, the procurement proportion has dropped to 22.39%.

The cost of obtaining customers from high-quality medical and beauty institutions in So-young International Inc channel is only 1/7 of that of Baidu, Inc.. So-young International Inc founder Venus previously said in an interview that So-young International Inc "greatly saved market costs and pulled down marketing costs." "

Compared with Baidu, Inc. search and promotion, the medical beauty APP platform represented by So-young International Inc can meet more needs. The decision-making information for consumers' reference on the platform is more year-round, transparent and comparable; the content of users' consumption comments in the community can bring consumers more intuitive decision-making reference; while broadening the publicity and promotion channels of medical and beauty institutions, it can also promote the fair competition of the industry.

As predicted by Frost& Sullivan, a global business growth consultancy, the proportion of medical and beauty service providers' total customer spending through online healthcare services platforms is increasing, from 0.9 per cent in 2014 to 7.0 per cent in 2018; it is expected to reach 25.6 per cent by 2023.

Comprehensive upgrading of medical and aesthetic experience

What continues to promote the upward development of So-young International Inc is also the experience upgrading of the medical and beauty industry.

With the development of technology, it takes only 10 minutes to do a moonlight hair removal project, 20 minutes for picosecond laser, the most popular skin project, and even 1.5 hours for frozen lipolysis projects where you want to lose weight.

It shortens not only the operation time of the project, but also the recovery period of medical beauty. Unlike in the past, when double eyelids were cut to reduce swelling for a year, a popular Korean-style catgut-embedding medical project can basically restore nature as soon as a week. It not only greatly satisfies the privacy of consumers, but also promotes more possibility of "repurchase".

According to So-young International Inc and big data, the average cycle for users from activating their APP account to placing the first order is 33.25 days. They often need a period of time to break through psychological barriers, and once they have tried to experience a good "beauty", the new decision-making cycle will be significantly accelerated. For example, users of surgical beauty programs have implemented an average of 3.21 non-surgical beauty projects before placing their first surgical order.

The upgrading of technology has also brought about a decline in the price of medical beauty. At present, popular medical and beauty projects, such as double eyelids, skin rejuvenation, slimming, private care, and so on, range from a few hundred yuan to several thousand yuan. Basically fall within the affordable range of the post-90s and post-00s, the main body of medical beauty consumption, increasing the possibility of consumption and repurchase rate.

In China, there were more than 10 million medical cases in 2017, with a compound growth rate of 40%, surpassing Brazil to become the second largest medical country in the world after the United States.

However, compared with mature medical markets such as the United States, Brazil and South Korea, the penetration rate of China's medical beauty market is only about 2%, which is about 1% of that of the former.

In So-young International Inc's view, this means nearly five times the market growth space, in the future only this "Internet medical beauty first stock" there are hundreds of millions of medical consumers to serve.