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THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN
CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.
INDUSTRY OVERVIEW
The information presented under this section, unless otherwise indicated, is derived from various
official government publications and other publications and from the market research report prepared
by Frost & Sullivan, which was commissioned by us. We believe that the information has been derived
from appropriate sources and we have taken reasonable care in extracting and reproducing the
information. We have no reason to believe that the information is false or misleading in any material
respect or that any fact has been omitted that would render the information false or misleading in any
material respect. The information has not been independently verified by us, the Sponsor or any of our
or their respective directors, officers or representatives or any other person involved in the
[REDACTED] nor is any representation given as to its accuracy or completeness. The information and
statistics contained under this section may not be consistent with other information and statistics
compiled within or outside of Singapore, Malaysia, the PRC and Hong Kong.
SOURCE OF INFORMATION
We have commissioned Frost & Sullivan, an independent market research and consulting company,
to conduct an analysis of, and to prepare a report on the beauty and grooming service industries. The
report prepared by Frost & Sullivan for us is referred to in this document as the Frost & Sullivan Report.
A total fee of HK$1.1 million was paid to Frost & Sullivan for the preparation of the report, which we
believe reflects market rates for reports of this type.
Frost & Sullivan is a global consulting company founded in 1961 in New York and has over 40
global offices with more than 2,000 industry consultants, market research analysts, technology analysts
and economists.
RESEARCH METHODOLOGY
The Frost & Sullivan Report was undertaken through both primary and secondary research obtained
from various sources using intelligence collection methodologies. Primary research involved discussing
the status of the industry with certain leading industry participants across the industry value chain and
conducting interviews with relevant parties to obtain objective and factual data and prospective
predictions. Secondary research involved reviewing information integration of data and publication from
publicly available sources, including official data and announcements from government agencies,
company reports, independent research reports and data from Frost & Sullivan’s own database.
Basis and assumptions
In compiling and preparing the Frost & Sullivan Report, Frost & Sullivan has adopted the following
assumptions (i) the social, economic and political environment in Singapore, Malaysia, the PRC and Hong
Kong are likely to remain stable in the forecasted period; and (ii) industry key drivers are likely to drive
the growth of the intimate care and face architecture industries in Singapore, Malaysia, the PRC and Hong
Kong in the forecasted period.
On these bases, our Directors are satisfied that the forecasts and industry data disclosed under this
section are not misleading. Our Directors confirm that, after making reasonable enquiries, there is no
material adverse change in the market information since the issue date of the abovementioned sources
which may qualify, contradict or have adverse impact on the information under this section.
OVERVIEW OF THE BEAUTY AND GROOMING SERVICES MARKET
Introduction of beauty and grooming services industry
As a result of the ongoing development of the world’s economy and the rise of consumption level,
people around the world are increasingly paying more attention to their personal image. Development of
the related industries, such as beauty and grooming services are accelerated by the growing demand for
personal grooming management. Beauty and grooming services, usually refers to companies that provide
customers with various beauty treatments and grooming services at their outlet. Beauty and grooming
services can be subdivided into spa and massage, skin care services, slimming services, nail saloon, tattoo,
intimate care, tanning, face architecture etc. Amongst them, spa and massage accounts for the largest share
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INDUSTRY OVERVIEW
at 33.4% in 2019, followed by skin care services, at 31.3% in 2019. The global market for beauty and
grooming services is expected to increase at a CAGR of 3.1% over the next few years, with a total market
value of US$157.0 billion by 2024. In particular, intimate care and face architecture are one of the fastest
growing industries within the global beauty and grooming services market, which are expected to grow in
proportion from 1.5% and 1.1% in 2019 to 1.7% and 1.3% by 2024, respectively.
Classification and share in 2014 Classification and share in 2019 Classification and share in 2024
1.3% 1.5% 1.7%
0.9% 1.1% 1.3%
1.7% 1.2% 1.7% 1.2% 1.6% 1.4%
8.6% 8.9% 9.2%
33.9% 33.4%
9.3% 33.1%
9.7% 10.1%
12.2% 11.2% 9.2%
30.9% 31.3% 32.4%
Spa and massage industry Tattoo industry Spa and massage industry Tattoo industry Spa and massage industry Tattoo industry
Skin care services industry Tanning industry Skin care services industry Tanning industry Skin care services industry Tanning industry
Other industries Intimate care industry Other industries Intimate care industry Other industries Intimate care industry
Slimming service industry Face architecture industry Slimming service industry Face architecture industry Slimming service industry Face architecture industry
Nail saloon industry Nail saloon industry Nail saloon industry
Source: Frost & Sullivan Report
Over the past few years, global beauty and grooming market has experienced growth, with the total
market size by revenue increasing from US$112.1 billion in 2014 to US$134.4 billion in 2019. The growth
is mainly contributed by the rising consciousness of beauty and health and the improving living standard
of consumers in developing areas, such as those living in countries of Asia, Middle East and Africa.
Driven by increasing number of customers who wants to improve their personal appearances and images,
the global market for beauty and grooming services is expected to increase at a CAGR of 3.1% over the
next few years, according to the Frost & Sullivan Report. The upgrading of beauty techniques and devices
are also expected to draw more customers to consume personal care services at beauty outlets.
Definition of the intimate care and face architecture segment
Intimate care covers treatments and products of hair removal (including waxing, other semi-
permanent hair removal techniques and pre- and post-care services), rejuvenation for the intimate area and
thermal shape services offered at beauty outlets. Face architecture entails treatments and products of semi-
permanent make-up, brow shaping and coloring, lash extension and curl up and other facial hair removal
offered at beauty outlets.
Intimate care and face architecture services are usually provided at outlets, which are equipped with
facilities and therapists to ensure the service quality and safety. Upstream suppliers of the intimate care
and face architecture segment includes manufacture/distribution of beauty equipment and treatment
consumables. Therapists are of great importance to service quality and operational safety and tend to be
qualified prior to provision of services. As such, labour costs tend to form a substantial component for
market players.
OVERVIEW OF GLOBAL INTIMATE CARE MARKET
Market size by revenue
Market size by revenue of intimate care industry (global), 2014–2024E
Million US$
2,800 Total Male Female 2,674.5
2,600 2014–2019 CAGR: 5.9% 5.8% 5.9% 2,518.4
2020E–2024E CAGR: 6.3% 7.5% 6.1% 2,369.1 432.3
2,400
2,226.6 401.8
2,200 2,092.7 373.1
1,968.7 347.1
2,000 1,853.8 323.2
1,800 1,757.2 301.8
1,656.2 283.1
1,563.9 2,242.2
1,600 267.1 2,116.6
1,479.6 252.5 1,996.0
239.3 1,879.5
1,400 227.3 1,666.9 1,769.5
1,490.1 1,570.7
1,200 1,324.6 1,403.7
1,252.3
1,000
2014 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E
Male Female
Source: Frost & Sullivan Report
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INDUSTRY OVERVIEW
The intimate care market is gaining significant momentum across the world, as a consequence of the
increasing global interest in personal beauty. Such rising consciousness has fueled the demand for
professional intimate care services. The global intimate care industry has increased to
US$1,968.7 million in 2019, at a CAGR of 5.9% since 2014. The market is expected to increase to
US$2,674.5 million at a CAGR of 6.3% from 2020 to 2024. Historically, patrons of the intimate care
market are mostly female professionals whose spending accounted for around 84.7% of the total market
size in terms of revenue. The market size for males are expected to grow at a higher CAGR of 7.5% from
2020 to 2024 as personal grooming consciousness spread amongst the male population.
Market size by revenue of intimate care industry Market size by revenue of intimate care industry
(Singapore), 2014–2024E (Malaysia), 2014–2024E
Million S$ 2014–2019 CAGR: 6.0% Million MYR 2014–2019 CAGR: 5.8%
200 2020E–2024E CAGR: 7.1% 220 2020E–2024E CAGR: 6.7% 205.4
183.0 192.7
170.9 200 180.6
159.4 169.3
148.8 180
150 139.2 158.7
130.7 160 148.9
123.3 139.8
117.4 140 124.5 131.6
103.4 110.1 117.9
97.5 120 112.3
100
100
80
50 60
40
20
0 0
2014 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E 2014 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E
Actual Estimated Actual Estimated
Source: Frost & Sullivan Report Source: Frost & Sullivan Report
Market size by revenue of intimate care industry Market size by revenue of intimate care industry
(PRC), 2014–2024E (Hong Kong), 2014–2024E
Million RMB 2014–2019 CAGR: 5.8% Million HK$ 2014–2019 CAGR: 5.9%
1,200 2020E–2024E CAGR: 6.5% 2020E–2024E CAGR: 6.6% 1,035.9
1,088.7 1,050 971.8
1,021.3 909.9
1,050 958.1 900 853.6
899.6 802.3
900 844.7 756.2
793.9 750 681.3 718.8
702.5 746.1 639.7
750 662.7 601.2
598.3 626.4 600 568.2
600
450
450
300 300
150 150
0 0
2014 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E 2014 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E
Actual Estimated Actual Estimated
Source: Frost & Sullivan Report Source: Frost & Sullivan Report
As Singapore is situated near the equator, it has a tropical climate with abundant rainfall, high
temperature and high humidity all year round. Since hair removal for certain areas such as intimate area
and the back are difficult to accomplish by oneself at home and hair removal services in professional
outlets have longer lasting effects, professional intimate care services are gaining popularity in Singapore
over the past years and the market is expected to grow at a CAGR of 7.1% from 2020 to 2024. Moreover,
the per capita disposable income in Singapore experienced stable growth over the past few years and is
estimated to reach approximately S$79,000 in 2018. The per capita disposable income in Singapore is
expected to further increase to approximately S$85,600 by 2023. The general rising income by household
in Singapore together with rising awareness of the necessity of personal care is also expected to lead to
higher spending on personal care services. This is in line with the general trend in the global beauty and
grooming market, which growth has been mainly contributed by the rising consciousness of beauty and
health and improving living standard of consumers in developing areas — Asia amongst others.
As Malaysia is a developing country, professional intimate care service is still vastly considered as a
high-end consumption. Going forward, with the improvement of people’s living standard and the
increasing focus on personal appearance, the market size in Malaysia is predicted to reach MYR205.4
million in 2024 at a CAGR of 6.7% from 2020 to 2024.
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Due to different levels of urbanisation, inhabitants in the PRC’s tier one cities have higher aesthetics
consciousness and consumption power as compared to lower-tier cities. Going forward, backed by a
growing economy and increasing awareness of personal hygiene brought about by urbanisation and the
rapidly-increasing income level and spending power of tier two cities, the market size of the PRC is
expected to reach RMB1,088.7 million by 2024, at a CAGR of 6.5% from 2020 to 2024.
For Hong Kong, in addition to local customers, customers from the PRC with strong consumption
power also consume intimate care services in Hong Kong. With the development of the Hong Kong
economy, the market size in Hong Kong therefore is predicted to grow to HK$1,035.9 million by 2024, at
a CAGR of 6.6% from 2020 to 2024.
Key drivers of intimate care industry
— Consumer purchasing power
Due to the growing disposable income, the global market for beauty and grooming service is
expected to witness a substantial growth from US$139.1 billion in 2020 to US$157.0 billion in 2024,
demonstrating a CAGR of 3.1%. Moreover, per capita annual personal care expenditures in Singapore,
Malaysia, the PRC and Hong Kong are expected to grow at a CAGR of 2.7%, 4.9%, 8.2% and 4.7%,
respectively from 2019 to 2023, demonstrating increasing potential for growth in demand for personal
intimate care. The overall intimate care segment are partly fueled by high growth from the up-and-coming
intimate care products within the intimate care segment.
— Improvement in efficacy
With heightened focus on body appearance, customers generally have more expectations on the
results of intimate care services. For intimate care service providers, adapting to the technological
development by upgrading to more advanced models of beauty devices is one of the key factors for
improved efficacy. It is likely that potential customers will expand their consumption pattern from existing
traditional hair removal services to intimate care treatments. As a result, intimate care service providers
have to continuously launch new intimate care services and products to satisfy customers’ increased
demand for better efficacy and variety of intimate care treatments and products.
— Growing demand for intimate care product
There has been a growing demand for intimate care products to perform self-treatment on a more
frequent basis at the comfort of consumers’ home. There has also been a growing preference to purchase
intimate care products online in addition to conventional distribution channels such as cosmetic stores,
convenience stores and supermarkets. To capitalise on such trends, intimate care service providers should
expand both their online and retail presence by promoting new intimate care products in order to expand
their customer base and further enhance the overall development of the industry.
Market challenges
— High demand cultivation cost
The intimate care industry has obtained remarkable achievements in the past few years. However,
many customers still do not recognise the importance and need to purchase intimate care services. For
instance, Chinese customers do not have the habit of hair removal and only some tier one cities like
Shanghai has embraced these services. Hence, intimate care service providers will face obstacles for their
business development and expansion especially in markets with low awareness. In order to overcome such
issues, service providers need to devote time and capital to educate these customers.
— Intense competitive environment in developed markets
In developed markets such as Singapore, competition within the intimate care market is fierce.
Customers are constantly looking for more advanced and innovative services and products; therefore,
intimate care service providers need to continuously upgrade the efficacy of their offerings in order to
keep pace with the market. Those who do not address changes in market demand will be driven out of the
market eventually. It is critical for service providers of the intimate care industry to foster continuous
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INDUSTRY OVERVIEW
education and skill development for their technicians to improve business image, develop high quality
service and increase client base. Educating technicians to improve their skills is essential for building
customer confidence and promoting good practices within the industry. It is expected that the intimate care
industry will develop their own industry standard in the near future to meet increasing demand for high
quality services.
— Franchise business
Intimate care industry is decentralised and competitive and given the low barriers to entry,
competition is expected to intensify further in the years to come. Large franchise service providers will be
able to gain more market share by delivering a consistent customer experience on a global scale. In the
expansion of global franchise network, intimate care service providers establish robust infrastructure and
implement distinctive procedures. With the expansion of global business, franchise service providers will
gain greater reputation and provide consumers with more choices in the future.
Competitive landscape of intimate care industry
— Entry barrier
Brand recognition
The global market for intimate care displays a highly competitive business landscape with the
continuous venturing of new entrants. Given the nature of intimate care, customers’ confidence is of
paramount importance, therefore, brand recognition is one of the major competitive advantage for
intimate care service providers. Establishing a brand of repute requires time, effort and more
importantly, satisfied customers. New entrants without strong brand recognition may find it difficult
to establish any competitive advantage.
Capital intensive
Intimate care market has a high barrier in terms of capital access. Intimate care outlets are
usually located in the central area of metropolitan cities with high footfall to solicit customers and
enhance brand exposure. Further, marketing efforts to promote brand recognition also requires
substantial expenditure. Moreover, since quality of services depends heavily on the experience and
competency of therapists, leading companies usually invest substantial capital by offering
professional trainings to their staff members in order to maintain consistent and outstanding services.
— Industry ranking
Top five intimate care service providers in Singapore
Intimate care industry in Singapore is fragmented. The total revenue of Singapore intimate care
industry reached S$130.7 million in 2019 and the top five players accounted for approximately
45.6% of the total revenue. Amongst all the players, our Group ranked first with a market share of
14.9% in 2019.
Top 5 players by revenue in intimate care industry (Singapore), 2019
Our Group 14.9%
Company A 10.8%
Company B 8.2%
Company C 6.6%
Company D 5.1%
Source: Frost & Sullivan Report
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Competitor profiles
Among other companies in the top five rankings, Company A is a private company
headquartered in Singapore and provides services such as waxing and long term hair removal to
customers, as well as face architecture services such as tinting and whitening of the brows. Company
B is a private company headquartered in Japan and mainly focuses its business on hair removal.
Company C is also a private company from Japan and is specialised in helping customers achieve
smoother and fairer skin. Company D is a private company headquartered in Singapore, operating
businesses such as Brazilian waxing, body waxing, LHE (Light, Heat and Energy) treatment, etc.
According to Frost & Sullivan, the intimate care industry is vast with many service providers
providing different types of treatments and no recognisable industry leaders in Malaysia, the PRC
and Hong Kong and considering our Group accounted for an insignificant share of the overall
intimate care industry in the these regions, it is not practical to ascertain the market share of our
Group and other major players in these regions.
OVERVIEW OF GLOBAL FACE ARCHITECTURE INDUSTRY
Market size by revenue
The global face architecture market has experienced a sound development over the past five years.
Its market size by revenue increased to US$1,419.5 million in 2019, at a CAGR of 6.4% since 2014.
Going forward, market size of the female customers are expected to grow at a higher CAGR at 7.3% for
2020 to 2024 compared to 6.8% for males over the same period.
Market size by revenue of face architecture Market size by revenue of face architecture
industry (global), 2014–2024E industry (Singapore), 2014–2024E
Million US$ Total Male Female Million S$ 2014–2019 CAGR: 7.4%
2014–2019 CAGR: 6.4% 5.7% 6.5% 2,017.1 160.0 2020E–2024E CAGR: 8.4%
2,100 1,881.6 151.7
2020E–2024E CAGR: 7.3% 6.8% 7.3% 1,753.6 145.2
1,632.8 135.8
140.0 139.9
1,800 128.9
1,521.7 127.2
1,419.5 119.1 120.0 118.8
1,500 1,324.9 111.7 109.8
1,165.9 1,240.5 104.9 101.6
1,099.9 100.0 94.5
1,040.6 98.6 88.2
1,200 88.2
93.0
81.7
83.8 1,871.9 80.0 76.2
79.6
1,745.8 71.2
900 1,626.4 60.0
1,410.0 1,513.7
1,226.3 1,314.6
600 1,077.7 1,147.5 40.0
961.0 1,016.1
300 20.0
0 0.0
2014 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E 2014 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E
Male Female
Source: Frost & Sullivan Report Source: Frost & Sullivan Report
Market size by revenue of face architecture Market size by revenue of face architecture
industry (PRC), 2014–2024E industry (Hong Kong), 2014–2024E
Million RMB 2014–2019 CAGR: 6.3% Million HK$ 2014–2019 CAGR: 7.0%
1,050.0 2020E–2024E CAGR: 7.5% 2020E–2024E CAGR: 7.9%
800.0
936.9 710.5
871.5 700.0 657.9
900.0 809.9 608.6
753.4 600.0 563.5
750.0 655.6 702.1 523.7
615.0 489.4
580.2 500.0 459.5
600.0 544.8 398.3 428.6
482.6 512.5 400.0 371.5
348.2
450.0
300.0
300.0
200.0
150.0 100.0
0.0 0.0
2014 2015 2016 2017 2018 2019 2020E 20201E 2022E 2023E 2024E 2014 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E
Actual Estimated Actual Estimated
Source: Frost & Sullivan Report Source: Frost & Sullivan Report
Singapore has a well-developed market for face architecture. Going forward, customers are likely to
have higher expectations for face architecture services such as longer lasting results, thereby encouraging
service providers to upgrade their offerings. The market size by revenue is expected to grow from S$109.8
million in 2020 to S$151.7 million in 2024, representing a CAGR of 8.4%. Similar to intimate care
services in Singapore, the per capita annual expenditure on personal care services in Singapore reached
approximately S$322.9 in 2019, at a CAGR of 2.8% since 2014 and is expected to further grow to
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INDUSTRY OVERVIEW
approximately S$369.9 in 2024, at a CAGR of 2.8% from 2020. In light of this, coupled with the
increasing awareness among customers, there is a strong potential for sustained growth for face
architecture services in Singapore in the near future.
The PRC had a fast developing economy in the past few years which underpinned the overall
development of the face architecture service market. Going forward, tier two and tier three cities are
expected to largely contribute to the growth of the overall PRC market. With the PRC’s sizeable potential
customer base, the market size by revenue of face architecture industry is forecasted to reach RMB936.9
million in 2024, at a CAGR of 7.5% since 2020.
Since the culture in Hong Kong is more westernised, face architecture services developed rapidly
with the market size by revenue increased at a CAGR of 7.0% from 2014 to 2019. Looking forward, the
market size for face architecture service in Hong Kong will expand further as a result of rising customer
awareness driven by more advanced service techniques.
Key drivers of face architecture industry
— Large customer base
The improving living standard affords more consumers to concentrate on their quality of life and
personal images. With the rising interest in beauty, face architecture is gaining significant momentum
across the world. In addition to its traditionally female clientele, growth in the market amongst male
customers is expected to be driven by increasing male awareness and social acceptance on face
architecture services. The enlarging customer group expands wider and further drives the development of
face architecture industry in the coming future.
— Improved efficacy
In the face architecture industry, semi-permanent make-up techniques are expected to develop with a
higher degree of colour permanence with more natural-looking, longer-lasting results and more
comfortable treatment. In addition, customer experience will prompt the growth of face architecture
industry that makes it necessary for market participants to expand their business scope and provide more
diversified services, thus maintaining customer stickiness and horizontally promoting the development of
face architecture industry.
Market challenges
— High demand cultivation cost
Face architecture industry has obtained significant achievements in the past few years. However, due
to the development difference of economy and cultural concept, many customers have yet to recognise the
importance and effect of professional face architecture services as certain services such as brow shaping
can be performed by oneself at home. Cultivation of consumer behaviour, from the acceptance of concept
to the formation of consumer habits would require time and marketing efforts; hence, face architecture
service providers need to devote a massive amount of time and capital to educate customers.
— Intense competitive environment in developed markets
The competition environment in developed market such as Singapore and Hong Kong is relatively
intense and fragmented. Due to the relatively longer development history of face architecture service in
developed countries or regions, many players in the market have obtained good customer relationships and
experienced therapist teams. Hence, in order to keep pace with the fast developing market, face
architecture service providers need to continuously enhance their research and development capabilities
and training strategies to retain customers and therapists alike. It is critical for service providers of the
face architecture industry to foster continuous education and skill development for their technicians to
improve business image, develop high quality service and expand client base. Educating technicians to
improve their skills is essential for building customer confidence and promoting good practices within the
industry. It is expected that the face architecture industry will develop their own industry standard in the
near future to meet increasing demand for high quality services.
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Competitive landscape of face architecture industry
— Entry barriers
Ability to recruit and retain skilled talents
The inherent nature of the face architecture industry requires an artistic touch. In particular,
specific face architecture treatments under ‘‘Browhaus’’ such as brow shaping and semi-permanent
make-up requires strong appreciation for aesthetics. The talent pool for therapists in the face
architecture industry is relatively limited, compared with the types of beauty services, which are
more mechanical in nature. As a result, the in-house treatment techniques, reputation and
remuneration packages offered by face architecture service providers to potential therapists are key
factors for recruitment and retention of skilled talents, and in turn, maintenance of its service quality,
thus competitiveness.
Capital intensive
Face architecture industry has a high barrier in terms of capital access. Face architecture outlets
are usually located in the commercial business area of metropolitan cities which can bring large
population flow and potential customers. Moreover, the equipment and devices applied to semi-
permanent make-up services, brow shaping and coloring, lash extension, etc. are of great importance
to the service quality and customer experience; hence, face architecture service providers need to
invest heavily on advanced equipment. For new entrants, a large amount of capital investment in the
early stage is essential but difficult to obtain.
— Industry ranking
Top five face architecture service providers in Singapore
Face architecture industry in Singapore is fragmented. The total revenue of Singapore face
architecture industry reached S$101.6 million in 2019 and the top five players accounted for
approximately 38.9% of the total revenue. Among all the players, our Group ranked first with a
market share of 12.0% in 2019.
Top 5 Players by revenue in face architecture industry (Singapore), 2019
Our Group 12.0%
Company E 8.6%
Company F 7.3%
Company A 6.3%
Company G 4.7%
Source: Frost & Sullivan Report
Competitor profiles
Among other companies in the top 5 rankings, Company E is a private company headquartered
in Singapore and provides services such as lash tint, waxing, false eyelash application to customers.
Company F is a private company headquartered in Singapore, providing services of eyebrow,
eyeliner and lips and products of skincare and beauty tools. Company A is a private-owned local
brand in Singapore, focusing its business on tinting and whitening under the face architecture
category. Company G is a private company headquartered in Singapore, providing services of
eyebrow, eyelash, eyeliner and lips as well as derivative products.
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INDUSTRY OVERVIEW
According to Frost & Sullivan, the face architecture industry is vast with many service
providers providing different types of treatments and no recognisable industry leaders in Malaysia,
the PRC and Hong Kong and considering our Group accounted for an insignificant share of the
overall face architecture industry in the these regions, it is not practical to ascertain the market share
of our Group and other major players in these regions.
COST ANALYSIS
According to the Frost & Sullivan Report, the major expense factors in Singapore, Malaysia, the
PRC and Hong Kong intimate care service industry and face architecture service industry are labour costs
and equipment. The chart below sets forth the annual average employee salary in the intimate care and
face architecture industries of Singapore, Malaysia, the PRC and Hong Kong:
Average annual employee salary in the intimate Average annual employee salary in the intimate
care and face architecture industries (Singapore), care and face architecture industries (Malaysia),
2014–2024E 2014–2024E
S$ 2014–2019 CAGR: 5.4% MYR 2014–2019 CAGR: 6.7%
2020E–2024E CAGR: 5.1% 37,400 39,200 2020E–2024E CAGR: 6.0%
40,000 35,600 100,000 90,900
33,800 86,000
35,000 32,100 81,200
29,900 30,800 76,600
28,100 80,000 72,100
30,000 26,500 68,300
25,000 64,700
23,700 60,600
25,000 52,700 56,600
60,000 49,300
20,000
15,000 40,000
10,000
20,000
5,000
0 0
2014 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E 2014 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E
Source: Frost & Sullivan Report Source: Frost & Sullivan Report
Average annual employee salary in the intimate Average annual employee salary in the intimate
care and face architecture industries (PRC), care and face architecture industries
2014–2024E (Hong Kong), 2014–2024E
RMB 2014–2019 CAGR: 7.0% HK$ 2014–2019 CAGR: 6.1%
2020E–2024E CAGR: 6.0% 126,900 250,000 2020E–2024E CAGR: 5.3%
140,000 119,700
112,900 206,400
196,300
120,000 106,500 186,500
94,600 100,400 200,000 176,900
100,000 89,200 158,900 167,700
83,700 150,300
73,000 78,300
150,000 133,100 141,400
80,000 67,500 118,400 125,500
60,000 100,000
40,000
50,000
20,000
0 0
2014 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E 2014 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E
Source: Frost & Sullivan Report Source: Frost & Sullivan Report
In addition to labour costs, machines for semi-permanent hair removal is a major cost component in
the intimate care service industry, whilst treatment beds are major cost components for both intimate care
and face architecture service industries in Singapore, Malaysia, the PRC and Hong Kong. The average
costs are set forth in the chart as below:
Average price of major equipment in the Average price of major equipment in the
intimate care and face architecture industries intimate care and face architecture industries
(Singapore), 2014–2024E (Malaysia), 2014–2024E
Machine Treatment Bed Machine Treatment Bed
2014–2019 CAGR: -0.6% -1.8% 2014–2019 CAGR: -0.9% -2.4%
2020E–2024E CAGR: -0.6% -1.0% 2020E–2024E CAGR: -0.7% -0.8%
S$ per unit Machines for semi-permanent hair removal Treatment Bed Machines for semi-permanent hair removal Treatment Bed
MYR per unit
50,000 46,500 46,000 46,000 45,400 45,200 45,100 136,800 135,100 134,900 133,400 131,700 131,000 129,900
44,800 44,500 44,200 43,900 43,700 140,000 128,800 127,900 127,000 126,100
45,000
40,000 120,000
35,000 100,000
30,000
80,000
25,000
20,000 60,000
15,000
40,000
10,000
5,000 1,940 1,920 1,830 1,790 1,780 1,770 1,750 1,730 1,710 1,690 1,680 20,000
4,880 4,800 4,570 4,470 4,350 4,320 4,280 4,240 4,200 4,170 4,140
0 0
2014 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E
2014 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E
Source: Frost & Sullivan Report Source: Frost & Sullivan Report
– 71 –THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN
CONJUNCTION WITH THE SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.
INDUSTRY OVERVIEW
Average price of major equipment in the Average price of major equipment in the
intimate care and face architecture industries intimate care and face architecture industries
(Hong Kong), 2014–2024E (PRC), 2014–2024E
Machine Treatment Bed Machine Treatment Bed
2014–2019 CAGR: -0.8% -2.1% 2014–2019 CAGR: -1.0% -2.5%
2020E–2024E CAGR: -0.9% -0.7% 2020E–2024E CAGR: -0.8% -0.9%
HK$ per unit Machines for semi-permanent hair removal Treatment Bed RMB per unit Machines for semi-permanent hair removal Treatment Bed
300,000 250,000
257,000 254,200 254,100 251,200 212,700 210,200 209,700 206,700
248,000 247,000 244,400 241,800 239,600 204,000 202,200 199,800 198,100
237,600 235,900 196,400 194,800 193,500
250,000 200,000
200,000
150,000
150,000
100,000
100,000
50,000 50,000
10,040 9,940 9,570 9,380 9,130 9,020 8,930 8,850 8,790 8,730 8,680 7,120 6,980 6,650 6,490 6,340 6,280 6,220 6,160 6,100 6,050 6,010
0 0
2014 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E 2014 2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E
Source: Frost & Sullivan Report Source: Frost & Sullivan Report
FROST & SULLIVAN’S COMMENT ON OUR GROUP
Frost & Sullivan is of the view that:
. we have established a strong track record and extensive global network in the market. In
particular, our Group owns two distinguished brands ‘‘Strip’’ and ‘‘Browhaus’’ which are
known to be the industry trendsetter. As trendsetters and pioneers with well-established
franchise model and strong customer loyalty, both ‘‘Strip’’ and ‘‘Browhaus’’ are ranked as
market leaders in Singapore’s intimate care and face architecture industries, respectively;
. our strong brand recognition and solid customer loyalty put it in good stead to capture market
opportunity arising from the growing awareness of personal grooming;
. our on-going introduction of new and revolutionary intimate care products and services such as
intimate care products ‘‘TWO L(I)PS’’; Rosebud Vajuvenation and Thermal Shape for ‘‘Strip’’
and Plasma Lift for ‘‘Browhaus’’, which created a revolutionary trend and demonstrated its
capability to continuously develop innovative solutions to meet customers’ evolving demand in
order to stay at the forefront of the market; and
. we have been successful in our global network expansion utilising the franchise model to
enhance our overall brand equity and further strengthen our market positioning whilst avoiding
to bear the risk of debt or incur any cost of equity.
– 72 –You can also read
