S'Young Invests in Dermdoc, Enters Medical Skincare Area
- Chaileedo Press
- Sep 7, 2022
- 2 min read
With over 10 yuan million investment, will medical skincare be the next big thing?
Recently, Songyang, a dermatology company, announced that its sub-brand Dermdoc has received a 10 million yuan seed round of funding from S'Young.
Official information shows that Dermdoc is a skincare brand of Songyang Biotechnology Technology Co., Ltd, which is developed with the participation of dermatologists, mainly for the skin medical market, and its products focus on post-operative repair, etc.
Dermdoc products are based on the concept of "immune repair", which means that the skin is repaired and rebuilt by its own immune system. The products are based on Songyang's patented biological technology and formulated in a minimalist ratio to improve skin conditions and relieve skin sensitivity.
It is claimed that Dermdoc products are added with the proprietary ingredient Euthanin, which can awaken the immune regulatory mechanism of Langerhans cells, promote collagen synthesis and skin cell division and proliferation, rebuild the skin's stratum corneum, and allow damaged skin barrier and sensitive skin to be repaired quickly.
Dermdoc's current products include cold compresses, soothing and repairing creams, reordering dressings, and repairing sprays, priced from 178 to 398 yuan ($25.54 to 57.11).
Data show that, in the first half of the year, S'Young achieved revenue of 2.201 billion yuan ($316 million), a year-on-year increase of 3.89%, and net profit attributed to shareholders of the listed company was 82.816 million yuan ($11.8832 million), a year-on-year decline of 6.88%. The same A-share cosmetic companies, BOTANEE and Marumi, both of which have a revenue scale less than that of S'Young, but a much higher net profit than S'Young.
In the latest Top 15 of China's domestic mask brands in the first half of 2022 released by iiMedia Gold List, the mask brands, such as MIHOO and UNIFON under S'Young, all fall out of the top 10 of the list. Increasing revenue without increasing profit, S'Young began to look for the next potential market.
Frost & Sullivan reports that the market size of dressing products of the medical devices in China grew from 230 million yuan($33 million) in 2016 to 4.18 billion yuan ($599 million) in 2020, at a CAGR of 105.7%. The market size is expected to reach 20.14 billion yuan ($2.886 billion) by 2025, with a CAGR of 37% from 2020 to 2025. It can be seen that the market for device dressings is still promising.
It is worth noting that S'Young itself has years of accumulated experience in the facial mask market, and has a natural advantage in making dressing products. However, the market regulation of medical device cosmetics is more stringent compared to other cosmetics, and it is still unknown whether this field can become the next bigger thing in the future.
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