SBC Medical Banks On Established Infrastructure To Succeed As Growing Japanese Aesthetics And Cosmetic Medical Market Sees New Entrants

Associated Press

07-03-2025

NEWMEDIAWIRE) - The aesthetics and cosmetic medical market in Japan is heating up as well-heeled Chinese and other Asian consumers come to Japan for their advanced cosmetic treatments and surgeries, whether it's Botox, body contours or wrinkle fillers. Compounding that growth is demand among locals in Japan, who are also chasing the fountain of youth, albeit more subtly.
It's a big business taking off in Japan with the number of new clinics growing in the past few years. It makes sense, given the global cosmetic surgery and procedure market was $122.08 billion in 2022 and is expected to grow at a CAGR of 14.7% from 2023 to 2030. Meanwhile, the cosmetics market is expected to reach nearly $420 billion by 2030. Driving the growth are noninvasive procedures that are safe, reversible and require little in the way of downtime. Japan's own market also reflects similar growth, with the country's medical aesthetics market growing at a CAGR of 13% in the current decade for a value of $9 billion by 2033.
Cracks In The Boom
While the growth makes the market attractive to foreign entrants, problems are lurking in this burgeoning beauty market in Japan. The country is seeing aesthetics and cosmetic clinics open up at a fast clip, but many struggle or fail. There are several reasons why many aesthetics clinics in Japan are having a tough time, particularly if they are new entrants. For starters, some lack the infrastructure to grow and gain market share, plus there is growing competition and little in the way of price regulation in the market. Most cosmetic procedures in Japan are not covered by health insurance, which creates pricing disparities among competitors. Plus, complaints have been mounting about some of these clinics, including shoddy service, doctors who lend their name to the business but don't actually perform the medical procedures and treatments that cause injuries and illnesses.
Foreign companies trying to enter the market face all of the above, plus a language barrier, strict rules and regulatory processes and a culture that puts more emphasis on subtle beauty enhancements rather than over-the-top cosmetic overhauls.
SBC Confident It Can Capitalize On The Competitive Threats
While that spells bad news for the cosmetic clinics vying for customers' business in Japan, it is a potential boon for SBC Medical Group Holdings Inc. (NASDAQ: SBC), the Japanese owner and operator of a chain of cosmetic surgery clinics.
The company says it has an edge over its local and foreign rivals thanks to its already established presence in Japan, its years in business and brand name recognition. SBC has over 224 franchises and has served 4.3 million customers. On top of having the infrastructure to support its growing number of clients, the company's franchise clinics employ more than 500 licensed doctors who perform these advanced regenerative therapies and treatments throughout Japan. The company reports it also has a hard-earned reputation for providing quality care in a clean environment.
SBC Medical is also expanding into peripheral markets for cosmetics, diet products and other health and beauty areas. Unlike many other rivals in the market, SBC Medical has created a high-quality brand identity, similar to what many luxury brands have achieved. It's betting that creating a culture of high-quality cosmetic products and services will lead to greater market value.
Leveling The Playing Field For Everyone
SBC has been working hard to overcome the challenges its rivals face when it comes to servicing a diverse range of patients, particularly for patients coming from outside of Japan – including China as well as English-speaking countries – by launching a voice translation app specifically for medical aesthetics. According to SBC, the app ensures the accurate translation of specialized terminology, facilitating seamless communication between clinic staff and international patients. The app supports English and Chinese and is playing a pivotal role in enabling smooth consultations and pre-treatment explanations, reports SBC.
It's a big deal for SBC. After all, SBC says it welcomes over 10,000 inbound patients annually, with inquiries surpassing 20,000 each year. While China remains a key driver, patients from English-speaking countries are also increasingly visiting SBC's clinics.
Plus SBC is in growth mode, gearing up to expand the number of clinics and build its brand name globally and further cementing its advantage in terms of infrastructure, which is where many competitors falter. For the nine months ended Sep. 30, 2024, the company reported revenue grew 23% year-over-year to $160 million and customer count grew by 13.5% to 4.3 million. With $137 million in cash, SBC says it has the firepower to continue to pursue sustained growth and reinforce its position.
The Japanese aesthetics and cosmetics medical market is witnessing growth as clinics pop up all over to cater to the beauty demands of consumers in Japan and abroad. But not all are created equal, and many falter. SBC says it is determined to remain the market leader by continuing to provide the highest quality of services through its robust infrastructure, as it seeks to expand its model globally.