Chinese business & economic reforms
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To find evidence of China’s $ 50bn favorite cosmetic surgery, look no further than the “red lipstick”.
This is Xiaohongshu’s English translation, an ecommerce entertainment and social media platform popular among young Chinese women with the hashtag #PreAndPostOp downloading more than 290,000 posts. Many of them show off before and after the photos of the extra jaws, lips connecting and the reconstructed cheeks.
But since early July, the market price of the three largest public-pharmaceutical companies has dropped by one quarter, representing a total loss of more than $ 17bn, despite the popularity of cosmetics.
The economic downturn is showing young Chinese days going under the knife in search of facial perfection can be counted, as President Xi Jinping seeks to reform the country’s culture and business as part of “Normal” driving.
Investment Citic Bank estimates that sales in the Chinese pharmaceutical market exceeded Rmb330bn ($ 51bn) by 2020. But analysts warn that the business could suffer if Beijing finds that corporate malpractice is linked to private education and online games – industries where stricter laws have burned the market for large corporations in recent months.
“It’s possible that we could see other companies in need,” said Mark Tanner, chief executive of China Skinny.
Government journalists continue to criticize the business by promoting a more transparent image and creating more problems for young people. she is already worried about herself of their form.
In a statement issued Tuesday, spokespersons for People’s Daily warned that the advertising campaign for the jewelry industry was “cross-border”. The newspaper warned of pre-and-post commercial images of well-known Chinese celebrities aimed at “persuading consumers” and urging them to “establish rules to run the new business without delay”.
Tanner, a former Chinese beauty specialist, said many people in the country have embraced the positive effects of cosmetic surgery. “[If] “Everyone is not ‘good looking’, so there is not enough pressure to spend the money you earn hard and do the same,” he said.
Investor unease has added to the concerns of health officials over the increasing number of banned operations and illegal hospitals, which have criticized from Beijing for “anxious appearance” and “young production customers”.
Last month, exchanges in Shanghai and Shenzhen banned loans linked to consumer jewelry loans.
Advertisers looking for the next goal of the directors have arrived at So-Young, a Nasdaq-based app that allows users to look at their faces, create tweaks and find plastic surgeons. So-Young’s low interest rate on all interest rates – the number of bets against the company – has increased in recent weeks as its stock has fallen to a lower price point, more than half this year.
“The market needs to be careful here,” said Brock Silvers, chief financial officer at Kaiyuan Capital. Silvers said a disappointing recovery in consumers of money in China this year helped sell the stocks of the jewelry industry, while the latest orders from Beijing “could not match the prospect of temporary growth”.
Officials have also expressed dissatisfaction with the situation in China. Go Youn-jung, a 25-year-old South Korean artist, is a well-known example of “counterfeit surgery”, which seeks to imitate the popularity of celebrities, according to So-Young. Past and present images of men’s films often feature unconventional images resembling South Korean statues and, to an extent, China – media state state has lambled for defamation of Chinese semen.
There are also signs of a growing public awareness of the impact of body image. Posts on the Weibo social networking site with hashtags such as #DoYouHaveAppearanceAnxiety and #SayNoToAppearanceA concerns have been displayed nearly 490m and have attracted thousands of responses.
Some young Chinese people enjoy reading companies. “Education work has been severely affected [by regulators]”, User Weibo Camry recently wrote.” Please take strong action against the cosmetic industry. “
Damage from regulators could change years of rapid growth in the jewelry industry and undermine expectations for blockbuster growth. So-Young has already landed more than 400m trips to China since its inception in 2014, according to Qimai Data, an online data provider.
Estimates of the value of the Chinese cosmetics market vary, but industry analysts agree that the sector has grown significantly as expected to continue. A report released in January by Deloitte predicted the cost of licensed beauty products in China to Rmb310bn by 2023, an increase of more than 50% from 2020 and a tenfold increase from 2012. Citic, whose estimates also include unlicensed businesses, is expected to have licenses. be more valuable than Rmb1tn by 2030.
But as expectations for regulators intervene are growing, financial worries have already spread beyond state markets, with the removal of secret money that often seeks to throw money at the start of the jewelry industry.
“In the past, we looked at each other. . . to the potential revenue gap between plastic surgery or medical companies, “China’s financial services retailer told the Financial Times.
As told by Hudson Lockett in Hong Kong, Sherry Fei Ju in Beijing and Edward White in Seoul