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Singapore Eastspring Investments Insights
China Emerges as a Global Leader in Medical Beauty Industry
As the world's second-largest medical aesthetic services market, China is poised to become the largest by 2021. The growth of its live streaming economy and increased social media usage have rsed consumer demand for attractive appearances among younger generations, leading to an exted consumer lifespan for beauty treatments. This creates promising opportunities in the unique ecosystem of filler manufacturers, internet platforms, consumer finance apps, and aesthetic service providers.
Xiang Xu
Senior Analyst, Equities
Eastspring Investments
Market Dynamics Opportunities
With a growing focus on customer acquisition, marketing, improved service quality, enhanced brand recognition, and safety records, more Chinese consumers are considering medical aesthetics as an advanced alternative to traditional wellness procedures. This shift has opened several avenues for investors:
Exposure through HA Manufacturers: Companies that develop effective treatments catering to segmented market demands offer compelling investment opportunities. Differentiated products like cross-linked hyaluronic acid HA can deliver various effects such as shaping, filling or lifting. Although early movers have advantages, new entrants can capture market share through innovation in product development.
Internet Platforms Consumer Finance: Information platforms facilitating customer reviews and specialized information play a pivotal role due to the asymmetric flow of knowledge among consumers. Additionally, apps offering financial solutions for treatment costs have emerged. Future consolidation of service providers might also lead to downstream investment opportunities.
is part of Eastspring's 2021 Asian Expert Series. Our investment teams explore China’s evolving landscape as it implements its 14th Five-Year Plan.
Key Takeaways
Segmented Market Opportunities: Look for companies that can cater to the segmented market demands through innovative products and services.
Information Platforms Consumer Education: Companies investing in information platforms and consumer education will likely gn competitive advantages, attracting more customers from a vast provider landscape.
Funds Offered by Eastspring
Investors seeking exposure to China's medical beauty sector might consider funds like:
Eastspring Investments - China A Shares Growth Fund
Eastspring Investments - China Equity Fund
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