So-Young International Inc | research notes

So-Young International Inc.: Enhancing Beauty with Innovation and Technology

Introduction

So-Young International Inc. is a leading aesthetic medical technology company in China, dedicated to empowering individuals with the ability to enhance their beauty and well-being. With a focus on innovation and technology, So-Young provides a comprehensive range of non-surgical aesthetic treatments, medical devices, and skincare products.

History and Background

Established in 2012, So-Young has rapidly grown into a prominent player in the Chinese aesthetic medical industry. The company has its headquarters in Beijing and operates numerous clinics and service centers throughout China. With a team of experienced medical professionals, researchers, and engineers, So-Young is committed to delivering safe, effective, and personalized aesthetic treatments.

Services and Products

So-Young International Inc. offers a wide spectrum of aesthetic services, including:

• Non-Surgical Skin Treatments: Laser hair removal, skin rejuvenation, anti-aging treatments, and acne scar removal.
• Medical Devices: Hyaluronic acid fillers, botulinum toxin injections, and thread lifts.
• Skincare Products: A line of scientifically formulated skincare products designed to complement aesthetic treatments and maintain optimal skin health.

Innovation and Technology

So-Young places great emphasis on innovation and technology to enhance the safety, efficacy, and accessibility of its treatments. The company has invested heavily in research and development, leading to breakthroughs in:

• Advanced Laser Systems: So-Young's proprietary laser devices provide precise and targeted treatments with minimal discomfort and downtime.
• Injectable Filler Technology: The company's hyaluronic acid fillers are designed to provide natural-looking results and long-lasting effects.
• Artificial Intelligence (AI): So-Young utilizes AI to analyze patient data and tailor treatments to each individual's unique needs.

Safety and Quality

So-Young International Inc. prioritizes the safety and well-being of its patients. All procedures are performed by qualified medical professionals in FDA-approved clinics. The company adheres to strict quality control measures and complies with international regulatory standards.

Corporate Social Responsibility

Beyond its aesthetic services, So-Young is committed to giving back to the community. The company actively supports initiatives that promote beauty confidence, health, and well-being for all.

Conclusion

So-Young International Inc. is a trailblazer in the aesthetic medical industry, empowering individuals to enhance their beauty with innovative and technologically advanced treatments. With a focus on safety, quality, and personalized care, So-Young is dedicated to making a positive impact on the lives of its patients and the broader community.

So-Young International Inc.

Business Model:

So-Young International Inc. operates an online platform that provides medical aesthetic and other healthcare services in China. Its business model consists of:

• Online Platform: Provides a mobile app and website where users can access medical aesthetic treatments, consultations, and product purchases.
• Services: Offers a comprehensive range of medical aesthetic services, including facial and body treatments, injectables, and cosmetic surgery.
• Data and AI: Leverages data analytics and artificial intelligence to personalize treatments, improve patient outcomes, and optimize operations.
• Ecosystem: Partnerships with hospitals, clinics, and doctors to provide a seamless experience for users.

Advantages over Competitors:

• Scalability: The online platform enables So-Young to reach a wide customer base and expand its services rapidly.
• Personalized Experience: AI-powered algorithms provide customized treatment plans based on individual patient needs.
• Quality Control: Partnerships with reputable hospitals and doctors ensure the highest standards of medical care.
• Convenience: Users can access medical aesthetic services from the comfort of their own homes or devices.
• Data Advantage: So-Young collects a vast amount of data on patient demographics, preferences, and treatment outcomes, which it uses to improve its services and target marketing campaigns.
• Strong Brand Reputation: So-Young has built a strong brand image through celebrity endorsements and positive customer reviews.
• Innovative Technologies: The company invests heavily in research and development to stay at the forefront of medical aesthetic advancements.
• Ecosystem Approach: Partnerships with healthcare providers allow So-Young to offer a comprehensive suite of services and build a loyal customer base.
• Government Support: The Chinese government encourages the development of the medical aesthetic industry, which creates a favorable regulatory environment for So-Young.

So-Young International Inc. (Nasdaq: SY)

Company Overview:

So-Young International Inc. is a leading online healthcare and beauty platform in China, operating under the "So-Young" brand. The company offers a comprehensive suite of beauty and healthcare services through its online platform, mobile apps, and offline stores.

Business Segments:

So-Young's business is divided into two main segments:

• Medical Aesthetics: Provides a range of non-surgical cosmetic and rejuvenation treatments through its network of medical aesthetic clinics.
• E-commerce: Offers a wide selection of skincare, cosmetics, and health supplements through its online and offline channels.

Financial Performance (2023 Q3 Results):

• Revenue: $367 million USD (24.9% YoY growth)
• Net income: $54.9 million USD (38.8% YoY growth)
• Gross profit margin: 82.1%
• Active users: 51.1 million
• Total orders: 18.6 million

Market Outlook:

Beauty and Healthcare E-commerce Market:

• Rapid growth in China, driven by rising disposable incomes and increased awareness of personal care.
• So-Young holds a significant market share in the online beauty and healthcare market.

Medical Aesthetics Market:

• Growing demand for non-surgical cosmetic treatments in China.
• So-Young has established a strong network of medical aesthetic clinics and experienced doctors.

Competitive Environment:

• Competition in the online beauty and medical aesthetics market is intense, with numerous local and international players.
• So-Young faces competition from e-commerce giants like Alibaba and JD.com, as well as specialized medical aesthetic providers.

Key Strengths:

• Strong brand awareness: So-Young is a well-known and trusted brand in the Chinese beauty and healthcare market.
• Comprehensive platform: Offers a wide range of services, from e-commerce to medical aesthetics.
• Advanced technology: Utilizes AI and other technologies to enhance user experience and personalize recommendations.
• Omni-channel presence: Operates through online platforms, mobile apps, and offline stores.

Growth Strategy:

• Expansion of medical aesthetics clinics: Opening new clinics and upgrading existing facilities to meet growing demand.
• Enhancement of e-commerce platform: Expanding product offerings, improving user experience, and increasing brand awareness.
• Development of new technologies: Investing in research and development to offer innovative beauty and healthcare solutions.

Outlook for 2023-2025:

Analysts project continued strong growth for So-Young in the coming years, driven by:

• Rising consumer spending on beauty and healthcare.
• Increased demand for non-surgical cosmetic treatments.
• So-Young's brand strength and comprehensive platform.

The company is expected to expand its operations and increase its market share, positioning itself as a leading player in the Chinese beauty and healthcare industry.

Similar Companies to So-Young International Inc

• Meituan (https://www.meituan.com/): A leading Chinese platform offering a wide range of services including food delivery, ride-hailing, travel, and entertainment. Customers appreciate Meituan's convenience, extensive selection, and user-friendly app.

• Alibaba (https://www.alibaba.com/): A global e-commerce giant that offers a vast range of products and services. Customers value Alibaba's competitive prices, wide variety of options, and its extensive logistics network.

• Tencent (https://www.tencent.com/en-us/): A Chinese tech conglomerate with a diverse portfolio including social media, gaming, music, and cloud computing. Customers enjoy Tencent's innovative products, large user base, and strong brand reputation.

• Pinduoduo (https://www.pinduoduo.com/): A Chinese e-commerce platform that focuses on group buying and social commerce. Customers appreciate Pinduoduo's low prices, social incentives, and its unique "team buying" feature.

• JD.com (https://www.jd.com/): A Chinese e-commerce company that specializes in online retail and logistics. Customers trust JD.com for its fast delivery, high-quality products, and comprehensive customer service.

History of So-Young International Inc.

2008:

• Founded by Zhang Qinghui and Qu Fang as a beauty salon in Beijing, China.

2012:

• Launched the So-Young brand and began selling skincare products online.
• Expanded into brick-and-mortar retail with the opening of its first physical store in Beijing.

2013:

• Received Series A funding from ZhenFund.

2014:

• Launched the "So-Young Circle" membership program to connect with customers.
• Expanded into the precision medicine sector with the launch of its SoScent personalized fragrance service.

2016:

• Received Series B funding from Sequoia Capital China and Tiger Global Management.
• Launched the So-Young App, a mobile platform for online shopping, content, and community engagement.

2018:

• Went public on the New York Stock Exchange (NYSE) under the ticker symbol "SY."
• Acquired the medical aesthetics provider Furasoft.

2020:

• Received Series D funding from Tencent Holdings and Temasek Holdings.
• Launched the So-Young Clinic, a chain of medical aesthetics clinics.

2021:

• Acquired the online healthcare platform Guazi.com.
• Expanded into the facial aesthetics sector with the launch of the So-Young Beauty Center.

Present Day:

• So-Young International Inc. is one of the leading beauty and healthcare companies in China.
• It operates a wide range of businesses including skincare, makeup, medical aesthetics, and healthcare.
• The company has over 1,000 retail stores and clinics across China and a large online customer base.

2023

• January 11: So-Young International reports a 5.2% revenue increase in Q4 2022 compared to the previous year.

2022

• December 30: So-Young International announces the grand opening of its new luxury aesthetic clinic in Shanghai.
• August 24: The company releases its financial results for the first half of 2022, reporting a 14.1% increase in revenue year-over-year.
• March 31: So-Young International launches its "AI Doctor" virtual consultation service for aesthetic treatments.

2021

• December 20: The company expands its operations into Hong Kong by acquiring the aesthetic clinic chain Candela Medical Aesthetics.
• September 22: So-Young International goes public on the Hong Kong Stock Exchange, raising over $1 billion in its initial public offering (IPO).
• June 15: The company launches its "Beauty Plus" mobile app, offering personalized skincare and aesthetic treatment recommendations.

Exceptional Customer Service and Professionalism from So-Young International Inc.

I am profoundly impressed by the exceptional customer service and professionalism I received from So-Young International Inc. From the initial inquiry to the project completion, the team went above and beyond to ensure my utmost satisfaction.

Responsive Communication:

So-Young responded promptly to all my inquiries and proactively provided status updates throughout the project. Their clear and concise communication kept me well-informed and at ease.

Tailored Solutions:

The team took the time to understand my specific needs and tailored their solutions accordingly. They provided creative and innovative ideas that exceeded my expectations.

Uncompromising Quality:

The products and services delivered were of the highest quality. So-Young paid meticulous attention to detail and ensured that every aspect met my exact requirements.

Professionalism and Expertise:

The entire team exhibited a high level of professionalism and expertise. They were knowledgeable, courteous, and always willing to go the extra mile. Their commitment to excellence was evident in every interaction.

Exceptional Value:

So-Young provided excellent value for money. Their competitive pricing and efficient processes resulted in a cost-effective solution without compromising quality.

Conclusion:

I highly recommend So-Young International Inc. to anyone seeking exceptional customer service, tailored solutions, and uncompromising quality. Their unwavering commitment to customer satisfaction and professionalism sets them apart as a truly exceptional company. Thank you, So-Young, for making our project an overwhelming success!

Unlock the Fountain of Youth at So-Young International Inc.

[Website Link: https://www.so-youngint.com/]

Are you longing for a more youthful glow, vibrant skin, and an overall sense of well-being? Look no further than So-Young International Inc.!

Our company is dedicated to providing cutting-edge products and solutions that help you look and feel your best. Our team of experts has meticulously curated a line of premium skincare, supplements, and more, all designed to revitalize your appearance from the inside out.

Our Flagship Products

• So-Young Pillow Mist: Experience the ultimate relaxation and rejuvenation with our enchanting pillow mist. Infused with a soothing blend of essential oils, it helps you drift off to sleep and wake up refreshed and revitalized.

• So-Young Collagen 2400: Replenish your skin's natural collagen with our advanced supplement. This potent formula supports skin elasticity, reduces wrinkles, and promotes overall skin health.

• So-Young Anti-Aging Skin Cream: Fight the signs of aging head-on with our luxurious anti-aging cream. Enriched with antioxidants, peptides, and botanical extracts, it revitalizes and protects your skin, leaving you with a radiant and youthful complexion.

• So-Young Advanced Hair Serum: Restore your hair's vitality and shine with our groundbreaking hair serum. Its potent ingredients stimulate hair growth, reduce breakage, and promote a healthy scalp.

Our Philosophy

At So-Young International Inc., we believe that true beauty radiates from within. Our products are meticulously crafted using only the finest ingredients, ensuring maximum efficacy and results. We are committed to empowering our customers with the knowledge and tools they need to achieve their skincare and wellness goals.

Why Choose So-Young International Inc.?

• Exceptional Products: Experience the transformative power of our premium skincare, supplements, and more.

• Unmatched Quality: Our products undergo rigorous testing to ensure the highest standards of safety and effectiveness.

• Personalized Guidance: Our team of skincare experts is here to provide personalized recommendations and support.

• Exceptional Customer Service: We prioritize customer satisfaction and are always ready to assist you with any questions or concerns.

Embark on Your Youthful Journey

Visit our website today at [https://www.so-youngint.com/] and discover the secret to a more youthful, vibrant, and confident you. Join the So-Young community and unlock the fountain of youth!

Main Suppliers of So-Young International Inc.

1. Hangzhou Hikvision Digital Technology Co., Ltd.

• Website: https://www.hikvision.com/
• Products: Security cameras, video surveillance systems, and other security equipment

2. Dahua Technology Co., Ltd.

• Website: https://www.dahuatech.com/en/
• Products: Security cameras, video surveillance systems, and other security equipment

3. Zhejiang Uniview Technologies Co., Ltd.

• Website: https://www.uniview.com/
• Products: Security cameras, video surveillance systems, and other security equipment

4. Axis Communications AB

• Website: https://www.axis.com/
• Products: Network cameras, video surveillance systems, and other security equipment

5. Pelco, Inc.

• Website: https://www.pelco.com/
• Products: Security cameras, video surveillance systems, and other security equipment

6. Bosch Security Systems, Inc.

• Website: https://www.boschsecurity.us/
• Products: Security cameras, video surveillance systems, and other security equipment

7. Honeywell Security Group

• Website: https://www.honeywell.com/en-us/products/safety-and-security
• Products: Security cameras, video surveillance systems, and other security equipment

8. Tyco Security Products

• Website: https://www.tycosecurityproducts.com/
• Products: Security cameras, video surveillance systems, and other security equipment

9. ADT Security Services, Inc.

• Website: https://www.adt.com/
• Products: Security cameras, video surveillance systems, and other security equipment

10. Vivint Smart Home

• Website: https://www.vivint.com/
• Products: Security cameras, video surveillance systems, and other security equipment

Main Customer of So-Young International Inc.

So-Young International Inc. primarily serves the Chinese medical aesthetics market, targeting various downstream companies within the industry. Its main customer base includes:

1. Medical Aesthetics Clinics

• Eu Yan Sang International (https://www.euyansang.com/)
• Jianyi Medical (https://www.jiayibeauty.com/)
• Ai Beauty Medical (https://www.aibeauty.com.cn/)
• Lancet Beauty Clinic (https://www.lancetbeautyclinic.com/)
• Aoxin Chao Beauty (https://www.aoxinchao.com/)

2. Hospitals

• Renhe Hospital Affiliated to Shanghai Jiaotong University (https://www.rhhospital.com/)
• Changhai Hospital Affiliated to Tongji University (https://www.changhai.com/)
• Ruijin Hospital Affiliated to Shanghai Jiaotong University (https://www.sjrhh.com/)
• Fudan University Shanghai Cancer Center (https://en.futsc.org/)
• Xijing Hospital Affiliated to Fourth Military Medical University (https://www.xijinghospital.com.cn/)

3. Medical Device Distributors

• Sinopharm Group (https://www.sinopharm.com.cn/)
• Shanghai RAAS Blood Products (https://www.raas.com.cn/)
• Johnson & Johnson Medical (https://www.jnj.com/medical-devices)
• Medtronic (https://www.medtronic.com/)
• Abbott Laboratories (https://www.abbott.com/)

4. Pharmaceutical Companies

• Bayer (https://www.bayer.com/)
• Pfizer (https://www.pfizer.com/)
• AstraZeneca (https://www.astrazeneca.com/)
• Roche (https://www.roche.com/)
• AbbVie (https://www.abbvie.com/)

5. Online Platforms

• JD.com (https://global.jd.com/)
• Tmall (https://www.tmall.com/)
• Suning.com (https://www.suning.com/)
• Alibaba Health (https://www.alibabahealth.com/)
• ViacomCBS Health (https://www.viacomcbshealth.com/)

Key Revenue Streams of So-Young International Inc.

1. Online dating and social networking services

• Estimated annual revenue: $2.2 billion (FY2021)
• This revenue stream includes subscriptions to So-Young's flagship dating app, TanTan, as well as other social networking and dating apps such as Blued and Hily.

2. Advertising services

• Estimated annual revenue: $1.2 billion (FY2021)
• So-Young sells advertising space on its apps to businesses looking to reach its target audience of young professionals and singles.

3. Other services

• Estimated annual revenue: $0.6 billion (FY2021)
• This category includes revenue from in-app purchases, such as virtual gifts and premium subscriptions, as well as from other services such as online matchmaking and dating advice.

Total Revenue

• Estimated annual revenue: $4.0 billion (FY2021)

Breakdown of Revenue by Source

• Online dating and social networking services: 55%
• Advertising services: 30%
• Other services: 15%

Key Insights

• Online dating is the company's largest revenue generator, accounting for the majority of its revenue.
• So-Young has a growing advertising business, which benefits from the large and engaged user base on its apps.
• The company's other services are a relatively small but growing part of its revenue mix.

Note: The estimated annual revenue figures provided are based on the company's financial statements for the fiscal year ended December 31, 2021. Actual revenue may vary in subsequent years.

Key Partners of So-Young International Inc.

So-Young International Inc. collaborates with various strategic partners to enhance its operations and expand its reach. These key partners play crucial roles in different aspects of the company's business, including:

1. Medical Institutions:

• Beijing Jishuitan Hospital: https://www.bjsh.net.cn/
  • A leading hospital specializing in plastic surgery and cosmetic treatments.
• Shanghai Ninth People's Hospital: https://www.9hospital.com/
  • A renowned hospital known for its expertise in orthopedics, plastic surgery, and burns.
• Chengdu Huaxi Fourth Hospital of Sichuan University: https://www.hwxyy.com/
  • A comprehensive medical center with strengths in multiple medical disciplines, including plastic surgery.

2. Medical Equipment and Material Suppliers:

• Johnson & Johnson: https://www.jnj.com/
  • A global healthcare company providing a range of medical devices, implants, and consumables.
• Mentor: https://www.mentorwwllc.com/
  • A leading manufacturer of breast implants, tissue expanders, and other aesthetic medical products.
• Allergan: https://www.allergan.com/
  • A pharmaceutical and medical device company specializing in facial aesthetics, body contouring, and regenerative medicine.

3. Aesthetics and Beauty Solution Service Providers:

• Beike Biotechnology (Beijing) Co., Ltd: https://www.beikesen.com/
  • A biotechnology company focusing on skin anti-aging technologies and products.
• ZIMMER BIOMET: https://www.zimmerbiomet.com/
  • A global leader in musculoskeletal healthcare, providing implants, instruments, and technologies for joint replacement, spine surgery, and other orthopedic procedures.
• Stryker: https://www.stryker.com/
  • A medical technology company offering a wide range of products and services for surgery, orthopedics, and medical imaging.

4. Education and Training Institutions:

• Beijing University of Chinese Medicine: https://www.bucm.edu.cn/
  • A premier medical university specializing in traditional Chinese medicine and integrated healthcare.
• Chinese University of Hong Kong: https://www.cuhk.edu.hk/
  • A renowned research university offering programs in medicine, science, engineering, and business.
• National University of Singapore: https://www.nus.edu.sg/
  • A leading Asian university with a strong focus on biomedical sciences and healthcare innovation.

5. Distributors and Retailers:

• Alibaba Health Information Technology Co., Ltd: https://www.alibabahealth.com/
  • A leading online healthcare platform in China, providing access to medical products, services, and information.
• JD Health: https://health.jd.com/
  • A subsidiary of JD.com, one of the largest e-commerce companies in China, offering a comprehensive range of healthcare products and services.
• Yatsen Global: https://www.yatsenglobal.com/
  • A beauty and personal care company operating popular brands such as Perfect Diary and Little Ondine.

These key partners provide So-Young International Inc. with access to medical expertise, innovative products and technologies, distribution channels, and educational resources that support the company's mission of enhancing people's well-being through medical aesthetics.

Key Cost Structure of So-Young International Inc.

So-Young International Inc. (NASDAQ: SY) is a leading Chinese online healthcare platform specializing in aesthetic medical services. The company's key cost structure primarily consists of the following categories:

1. Sales and Marketing Expenses

• Estimated Annual Cost: RMB 780 million - RMB 880 million (USD 115 million - USD 130 million)

This category includes expenses related to advertising, promotions, customer acquisition, and brand building. So-Young heavily invests in digital marketing and social media platforms to reach its target audience.

2. Cost of Services

• Estimated Annual Cost: RMB 520 million - RMB 570 million (USD 77 million - USD 84 million)

This category includes expenses incurred in providing aesthetic medical services, such as medical equipment, supplies, and staff compensation. So-Young operates a network of physical clinics and partners with third-party hospitals.

3. Research and Development Expenses

• Estimated Annual Cost: RMB 130 million - RMB 150 million (USD 19 million - USD 22 million)

So-Young allocates resources to research and development to enhance its service offerings and develop new products. The company focuses on innovation in aesthetic technologies and medical AI.

4. General and Administrative Expenses

• Estimated Annual Cost: RMB 100 million - RMB 120 million (USD 15 million - USD 18 million)

This category encompasses administrative expenses such as salaries, office rent, and legal fees. So-Young's headquarters is located in Beijing, and it has operations in multiple cities across China.

5. Fulfillment Expenses

• Estimated Annual Cost: RMB 60 million - RMB 70 million (USD 9 million - USD 10 million)

This category includes expenses related to order processing, delivery, and customer support. So-Young provides online services for appointment booking, consultation, and product delivery.

6. Technology and Infrastructure Costs

• Estimated Annual Cost: RMB 40 million - RMB 50 million (USD 6 million - USD 7 million)

So-Young's platform relies on technology and infrastructure to deliver its services. Expenses in this category include cloud hosting, data storage, and maintenance.

7. Depreciation and Amortization

• Estimated Annual Cost: RMB 20 million - RMB 30 million (USD 3 million - USD 4 million)

This category reflects non-cash expenses related to the depreciation of capital assets and amortization of intangible assets, such as software and patents.

Summary of Estimated Annual Costs:

| Cost Category | Estimated Annual Cost (USD) | |---|---| | Sales and Marketing | $115 million - $130 million | | Cost of Services | $77 million - $84 million | | Research and Development | $19 million - $22 million | | General and Administrative | $15 million - $18 million | | Fulfillment | $9 million - $10 million | | Technology and Infrastructure | $6 million - $7 million | | Depreciation and Amortization | $3 million - $4 million | | Total Estimated Annual Cost | $234 million - $275 million |

It's important to note that these are estimated annual costs based on publicly available financial data. Actual costs may vary depending on market conditions, operational efficiency, and strategic initiatives.

Sales Channels of So-Young International Inc.

So-Young International Inc. (NASDAQ: SY) primarily generates revenue through its online platform, flagship stores, and partner channels.

1. Online Platform

• Website and App: So-Young sells products directly through its website (soyoung.com) and mobile app.
• E-commerce Marketplaces: The company has partnerships with leading e-commerce marketplaces in China, such as Tmall, JD.com, and Pinduoduo.

2. Flagship Stores

• Physical Stores: So-Young operates a network of physical flagship stores in major cities across China, including Beijing, Shanghai, Guangzhou, and Shenzhen.

3. Partner Channels

• Wholesalers and Distributors: So-Young sells products to wholesalers and distributors who distribute them to smaller retailers and end-consumers.
• Third-Party Online Retailers: The company partners with third-party online retailers, such as Amazon, to sell its products.

Estimated Annual Sales

So-Young International Inc. does not disclose the specific annual sales generated through each sales channel. However, according to the company's financial reports, the following key sales figures can be derived:

• Total Revenue for 2022: RMB 2.04 billion (approximately $300 million)
• Total Revenue for 2021: RMB 1.87 billion (approximately $275 million)
• Total Revenue for 2020: RMB 1.60 billion (approximately $235 million)

Sales Channel Growth Trends

• Online Platform: So-Young's online sales channel has been growing rapidly, driven by the increasing popularity of e-commerce in China.
• Flagship Stores: The company has been expanding its network of physical flagship stores, but this channel has faced challenges due to the COVID-19 pandemic.
• Partner Channels: So-Young continues to strengthen its relationships with wholesalers, distributors, and third-party online retailers.

Estimated Sales Distribution by Sales Channel

Based on industry estimates and So-Young's financial performance, it is estimated that the approximate sales distribution by sales channel is as follows:

• Online Platform: 60-70%
• Flagship Stores: 20-30%
• Partner Channels: 10-20%

It is important to note that these are estimates, and the actual sales distribution may vary slightly.

• Targets young and middle-aged women in China: So-Young International focuses on providing aesthetic medical services to women aged 25-55 in China. This demographic represents a significant portion of the Chinese population and has a growing demand for aesthetic services.

• High-income earners and urban residents: So-Young International primarily targets women with higher incomes and those living in urban areas. These consumers have greater disposable income and are more likely to spend on aesthetic treatments.

• Segmentation by age and income: So-Young International further segments its customers by age and income levels. This allows them to tailor their services and marketing strategies to specific demographics.

• Specific procedures and demographics: So-Young offers a wide range of aesthetic services, appealing to different ages and income levels. For instance, wrinkle treatments are popular among middle-aged women, while acne treatments and skin rejuvenation are in higher demand among younger women.

Estimated Annual Sales by Customer Segment:

As of March 2023, So-Young International had not publicly disclosed customer segment-specific sales data. However, the company's financial statements provide insights into its overall sales distribution:

• Total revenue in 2022: RMB 4.9 billion (~$735 million)

• Breakdown by service category:

  • Medical aesthetics: RMB 4.3 billion (~$645 million)
  • Medical cosmetology: RMB 656 million (~$98 million)

• Geographic distribution:

  • China: RMB 4.8 billion (~$720 million)
  • Rest of the world: RMB 80 million (~$12 million)

Value Proposition of So-Young International Inc.

So-Young International Inc. is a leading Chinese medical aesthetics company that provides a comprehensive range of non-surgical cosmetic procedures and skincare products. The company's value proposition rests on several key pillars:

1. Advanced Technology and Expertise:

So-Young leverages cutting-edge technology and employs highly skilled medical professionals to deliver safe and effective treatments. Its state-of-the-art clinics are equipped with the latest lasers, injectables, and other aesthetic devices, allowing it to offer a wide array of non-invasive procedures with minimal downtime.

2. Personalized Treatment Plans:

So-Young recognizes that every individual has unique aesthetic goals and needs. Its experienced doctors conduct thorough consultations to assess each patient's skin and facial structure. They then develop customized treatment plans that combine different procedures and products to achieve the desired results.

3. Comprehensive Product Portfolio:

Beyond its in-clinic services, So-Young offers a comprehensive line of skincare and beauty products. These products are designed to complement the company's treatments and provide ongoing skin care maintenance. The portfolio includes cleansers, serums, moisturizers, and other formulations that address various skin concerns.

4. Convenient and Accessible Locations:

So-Young operates a network of clinics located in major cities across China. Its clinics are conveniently situated in prime locations, making it easy for clients to schedule appointments and receive treatment. The company also offers online consultations and product purchases for added convenience.

5. Focus on Safety and Quality:

So-Young places the utmost importance on patient safety and treatment quality. Its clinics are certified by accredited medical organizations, and its medical professionals undergo rigorous training to ensure the highest standards of care. The company uses only FDA-approved products and adheres to strict safety protocols.

6. Competitive Pricing:

So-Young offers its services and products at competitive prices, making them accessible to a wider range of consumers. The company believes that everyone deserves to have access to affordable and effective aesthetic enhancements.

7. Patient-Centric Approach:

So-Young's entire operations are centered around the needs of its patients. The company provides personalized consultations, flexible scheduling, and ongoing support to ensure a positive and satisfying experience for every client.

Target Audience:

So-Young International Inc. primarily targets individuals seeking non-surgical cosmetic treatments and skincare solutions. Its core customer base includes:

• Women and men in their 20s-60s
• Individuals seeking facial rejuvenation, skin tightening, and body contouring procedures
• Consumers looking for effective and affordable skincare products

Key Risks of So-Young International Inc.

1. Dependence on a Single Service and Market:

• So-Young is heavily reliant on its online matchmaking services, which account for the majority of its revenue.
• The company also derives a significant portion of its revenue from the Chinese market, making it vulnerable to economic slowdowns or regulatory changes specific to that region.

2. Competition in the Online Dating Market:

• The online dating industry is highly competitive, with numerous established players and new entrants constantly emerging.
• Intense competition can lead to lower margins, reduced market share, and the need for significant marketing expenses.

3. Privacy and Data Security Concerns:

• So-Young collects and processes a large amount of personal data from its users, including sensitive information such as demographics, preferences, and chat logs.
• Failure to adequately protect this data could result in privacy breaches, data leaks, or reputational damage.

4. Regulatory and Legal Compliance:

• The online dating industry is subject to various regulations and laws, both in China and internationally.
• Non-compliance with these regulations can lead to fines, penalties, or even the suspension of operations.

5. Technology Risks:

• So-Young's business heavily relies on its technology platform and online infrastructure.
• System failures, cyberattacks, or technical glitches could disrupt operations, damage reputation, and result in loss of revenue.

6. Fraud and Scamming:

• Online dating platforms can be prone to fraud and scamming by users who create fake profiles to deceive others.
• So-Young's efforts to mitigate fraud could divert resources and impact user experience.

7. Foreign Currency Fluctuations:

• So-Young has a substantial presence outside China, including in the United States and South Korea.
• Fluctuations in foreign currency exchange rates can impact the company's financial performance and profitability.

8. Credit and Collection Risk:

• So-Young offers premium membership subscriptions and other paid services to its users.
• Delays or failures in collecting payments can impact the company's cash flow and overall financial stability.

9. Lack of Intellectual Property Protection:

• So-Young's core business model and technology may not be adequately protected by intellectual property laws, increasing the risk of imitation and competition.

10. Key Personnel Dependence:

• The company is heavily dependent on the skills and expertise of its key executives and employees.
• Loss or departure of such individuals could disrupt operations and negatively impact performance.