Machinery / Industrial Parts & Tools

Recently, led by Lei Jun, founding partner and chairman of Shunwei Capital, inFace, a “beauty artifact” company, received tens of millions of RMB in Pre-A round of financing, the previous round of investment in square core capital and additional investment from strategic partners. This round of financing represents inFace formally joining the Xiaomi ecological chain, and inFace is still actively preparing for the next round of financing.

inFace is a home care brand under Migu Intelligent. Last year, inFace's revenue exceeded 100 million yuan, and this year's goal is 250-300 million yuan. inFace was launched on the Xiaomi Youpin e-commerce platform in 2017, and launched its first product in January 2018-the sonic ion facial cleanser. This product was launched on Xiaomi crowdfunding and raised 3.4145 million in just two weeks. In the following few years, inFace has successively launched products such as facial cleansing device, golden beauty stick, blackhead device, hair straightening comb, etc., which have long occupied the top three in the washing and care list of Xiaomi Youpin e-commerce platform. In this year's 618 event, inFace straight hair comb ranked first in the styling comb/ion comb/electric comb category trading list.

Regarding this investment, the person in charge of Xiaomi Group said: inFace has entered 28 overseas markets including Russia, Spain, Turkey, Brazil, and domestic and foreign marketing has entered a period of rapid growth. In the next three to five years, the home beauty care industry will take the lead As a brand, inFace is user-oriented, original and self-developed, and occupies a favorable position.

Oxyfen Soft Water Apparatus

It is worth noting that Xiaomi has successively invested in 3 beauty instrument companies this year alone. In June, it invested in Ningbo Qingmei Electrical Technology Co., Ltd., which owns the brand Oxyphene.

Kesimei RF Radio Frequency Beauty Apparatus

In January, Xiaomi helped Shenzhen Kesimei Technology Co., Ltd. successfully complete the B+ round of financing. The company owns COSBEAUTY, a medical-grade household health consumer product brand, and its products include hair growth caps, ultrasonic ion beauty devices, hair removal devices, and skin detectors.

In fact, as early as 2017, Xiaomi Group and Shunwei Capital began to deploy in the field of beauty equipment. In November 2017, AMIRO, an optoelectronic beauty brand, received tens of millions of Pre-A rounds of financing led by Xiaomi and Shunwei Capital. At the end of last year, AMIRO officials announced a round B financing of 100 million yuan.

Behind such intensive investment is the rapidly developing medical beauty industry.

01

Beauty equipment companies that have sprung up like mushrooms

As a "value economy", the medical beauty industry has quickly entered the public's field of vision in recent years. This year, the medical beauty sector has continued to skyrocket for 3 months. The three leading players in the upper reaches of the industry chain-Amic, Haohai Biotech, and Huaxi Biology, have increased by 81%, 104%, and 72, respectively. %.

The data shows that from 2012 to 2019, the size of my country's medical beauty market has increased from 29.8 billion yuan to 176.9 billion yuan, with a compound annual growth rate of 29%. In 2020, the scale of China's home beauty equipment market will be 6 billion to 8 billion yuan. The growth rate reached 30%. In 2021, it will maintain a relatively high growth rate, and it is initially estimated that the market size will be around 16.5 billion yuan. It is estimated that by 2023, the market size of the medical beauty industry will reach 360.13 billion yuan.

Among them, the market scale of medical beauty instruments is also expanding. Public data shows that the scale of China's beauty instrument market in 2019 was 6.62 billion yuan, with an output of 6.794 million units, an increase of 21.82% year-on-year, and it has become a major outlet in the beauty field in recent years. Specific to the radio frequency beauty instrument, it is a typical representative of the high-end beauty instrument market, and the price is often more than 1,000 yuan. According to data from the "2020 Online Home Beauty Apparatus Consumption Insight Report", in a survey of 3000 female Internet users between 20 and 49 years old, 59% of women said they had used at least one home beauty apparatus. In 2021, the scale of my country's beauty instrument market is expected to be close to 10 billion yuan.

In this context, a large amount of capital has been invested in the beauty instrument market. Tianyan Check shows that as of June 30, there are more than 9,700 companies in my country that include "home" and "beauty instrument" in their names or business scope. Since 2016, the annual registration growth rate of household beauty instrument companies has been maintained at more than 25%.

02

Network transmission dividends, the industry urgently needs supervision

my country's e-commerce beauty instrument consumers are mainly concentrated in the 18-34 year-olds, accounting for 92% of the total consumer group. This wave of young consumer groups is heavily influenced by social media and tends to purchase beauty products through e-commerce platforms such as live broadcast and Xiaohongshu. Compared with general skin care products, beauty equipment is quicker and easier to grow grass, and it is easier to use online platforms to become a hot product relying on channel dividends.

The influx of a large number of businesses and the competition of various homogeneous products have also caused many problems. The survey found that the price below 800 yuan is the mainstream psychological price of consumers. In order to be more oriented towards the rapidly growing sinking market, many businesses on the market have produced cheap beauty instruments. Especially heating and radio frequency beauty instruments need special attention. This type of instrument should be cooled when it encounters blood vessels and other places, and a sensor is required. The cost of the sensor is between 1,000 yuan and 2,000 yuan. Therefore, it is recommended to purchase products with radio frequency and heating beauty instruments below 3300 yuan.

In April this year, the State Food and Drug Administration issued a notice on soliciting opinions on the "Guiding Principles for the Classification and Definition of Radio Frequency Beauty Products" (Draft for Solicitation of Comments), defining radio frequency beauty products as Class II and Class III medical devices. The scope of medical device management.

03

Overseas brands occupy the high-end market

At present, the beauty instruments of major international brands occupy 80% of the domestic market.

In 2020, the top 5 Tmall Taobao beauty instruments are all overseas brands, and their prices are generally above 3,000 yuan. According to the transaction amount announced by Tmall 618, the top three brands are Yameng, Chupu, and Zeus, all of which are foreign brands, with transactions reaching 888 million yuan, 707 million yuan and 130 million yuan respectively.

Yameng RF Beauty Apparatus

Domestic brands followed closely, and they have never slowed down to catch up. In 2015, RF beauty devices, micro-current beauty devices, and massage devices represented by brands such as Yameng, Refa, and Panasonic began to become popular in the Chinese market. Domestic beauty instrument brands have gradually sprouted and taken root, and local brands such as Jindao, Jiahemei, and SKG are beginning to emerge.

According to the sales data of this year's "618", the domestic beauty instrument brand Ulike has sold more than 100 million yuan in the live broadcast room, becoming the number one brand in the category of beauty and body equipment. Followed by Yameng and TriPollar, who mainly focus on radio frequency beauty instruments.

In this context, not only Xiaomi, but also Huawei is tempted by the beauty instrument market. In February of this year, Huawei Mall launched two beauty devices that support the HUAWEIHiLink system, namely Notime Rejuvenating Firming Beauty Device and Notime Age Reverse Time Machine, the latter also covers the field of RF beauty devices.

With the frequent efforts of domestic enterprises, I believe that in the near future, it will bring consumers more high-quality and low-cost products!