INDUSTRY OVERVIEW - : HKEX :: HKEXnews
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
INDUSTRY OVERVIEW
The information presented in this section, unless otherwise indicated, is derived
from various official government publications and other publications, and from the
market research report prepared by China Insights Industry Consultancy Limited, which
was commissioned by us. We believe that the information has been derived from
appropriate sources such as CIC’s database, publicly available information sources,
industry reports, as well as data obtained from surveys and other sources. We believe that
we have taken reasonable care in extracting and reproducing such information. We have
no reason to believe that such information is false or misleading, or that any fact has
been omitted that would render such information false or misleading. The information
from official government sources has not been independently verified by us, the Joint
Sponsors, or any of our or their respective directors, officers, representatives, employees,
agents or professional advisers, or any other person or party involved in the Global
Offering, and no representation is given as to the completeness, accuracy, or fairness of
such information. Accordingly, such information should not be unduly relied upon.
SOURCES OF INFORMATION
We commissioned China Insights Industry Consultancy Limited (“CIC”), an independent
market research consulting firm that is principally engaged in the provision of market research
consultancy services, to conduct a detailed study of the segments of the lifestyle and wellness
products industry in Asia and globally that we operate in. We have agreed to pay a fee of
US$88,000 to CIC in connection with the preparation of the CIC Report. The Directors confirm
that, after taking reasonable care, there is no adverse change in the market information since
the date of the CIC Report which may qualify, contradict or have an impact on the information
disclosed in this section.
During the preparation of the CIC Report, CIC performed both primary and secondary
research, and obtained knowledge, statistics, information, and industry insights on the relevant
industry trends of the lifestyle and wellness industry in Asia and globally. Primary research
involved discussing the status of the industry with leading industry participants and industry
experts. Secondary research involved reviewing company reports, independent research
reports, and available data based on CIC’s own research database. In addition, CIC also
conducted a survey (the “CIC Survey”) in December 2021, which had 720 respondents, to
study the relevant aspects of the lifestyle and wellness industry in Asia and globally.
The CIC Report was compiled and the expected growth in the relevant aspects of the
global lifestyle and wellness industry was estimated based on the following assumptions:
(i) that the overall global social, economic, and political environment is expected to remain
stable over the next decade; (ii) that related key industry drivers are likely to continue driving
growth in the global lifestyle and wellness industry from 2020 to 2026; and (iii) that there is
no extreme force majeure or industry regulations that affects the market dramatically or
fundamentally. The reliability of the CIC Report may be affected by the accuracy of the
foregoing assumptions and factors.
– 83 –THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
INDUSTRY OVERVIEW
OVERVIEW OF THE GLOBAL LIFESTYLE AND WELLNESS PRODUCTS
INDUSTRY AND GLOBAL MASSAGE PRODUCTS AND OTHER PERSONAL
WELLNESS DEVICES MARKET
The lifestyle and wellness products industry is a broad concept that generally includes the
following elements: health, mindfulness, beauty, fitness, nutrition and personal well-being.
We operate in the massage products and other personal wellness devices market segments
within the global lifestyle and wellness industry. Massage products include instruments or
devices designed to massage the user’s body, such as massage chairs and other massage
products to enhance users’ physical and mental well-being. Other personal wellness devices,
such as gamers’ massage chairs, air purifiers and other small personal care appliances, are
devices that can help users achieve better mindfulness and maintain a healthy lifestyle.
The size of the global massage products and other personal wellness devices market
increased from US$25.2 billion in 2016 to US$38.0 billion in 2020, and is expected to grow
to US$62.6 billion in 2026, representing a CAGR of 8.7% between 2020 and 2026. Given
consumers’ increasing focus on mental and physical health, the massage products and other
personal wellness devices segments are well positioned to continue to grow in the future.
The massage products and other personal wellness devices market in Asia is growing due
to increasing levels of income in Asia and the growing number of people entering into the mass
affluent and wealthy population cohort. The total sales revenue of the massage products and
other personal wellness devices market in Asia reached US$17.4 billion in 2020, representing
a CAGR of 11.4% between 2016 and 2020.
The chart below sets forth the breakdown of the historical and forecasted market size by
annual sales of the global massage products and other personal wellness devices market by
region for the periods indicated.
Global Massage Products and Other Personal Wellness Devices Market
Breakdown by Region, 2016-2026E
US$ billion Asia
North America
70 Europe CAGR CAGR
Rest of the world 2016-2020 2020-2026E
62.6
60 57.7
53.1
50 48.9
45.0 29.7 11.4% 9.3%
41.6 27.1
40 38.0 24.7
34.8 22.6
31.0 20.7
19.1
30 27.9 17.4
25.2 16.0 12.6
11.7 10.7% 8.3%
14.0 10.8
20 12.7 9.2 10.0
11.3 8.5
7.1 7.8
5.7 6.4 12.2 13.1 9.6% 7.5%
5.2 10.6 11.4
10 8.5 9.2 9.9
6.4 7.1 7.8
5.9
4.8 5.2 5.7 6.2 6.7 7.2 11.3% 9.0%
2.8 3.1 3.5 3.9 4.3
0
2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E 2026E
Source: the CIC Report
– 84 –THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
INDUSTRY OVERVIEW
Market size of the global massage products market
The global massage products market increased from US$9.6 billion in 2016 to US$15.2
billion in 2020, and it is expected to further grow at a CAGR of 9.8% to US$26.7 billion by
2026 given consumers’ increasing purchasing power and rising awareness of health and
wellness. Much of the growth of the global massage products market is attributable to Asia,
which contributed to 32.9% of the global massage products sales in 2020 and is expected to
grow to 37.8% by 2026. Growth of the Asian massage products market is expected to be driven
by the emerging markets in Asia, such as Greater China where the market for massage products
increased from US$1.8 billion in 2016 to US$3.2 billion in 2020, at a CAGR of 15.5%,
according to CIC.
The chart below sets forth the breakdown of the historical and forecasted market size of
the global massage products market by region for the periods indicated.
Global Massage Products Market Breakdown by Region, 2016-2026E
US$ billion Asia
North America
30 Europe CAGR CAGR
Rest of the World 26.7 2016-2020 2020-2026E
24.8
25
23.0
20.9 14.6% 12.4%
19.2 10.1
20 9.2
17.3 8.3
15.2 7.4
15 6.6
13.4 5.8
12.0 6.2 11.4% 9.0%
5.0 5.5 5.8
10.6
9.6 4.3 5.0
10 3.7 4.6
3.2 4.2
2.9 3.7
3.0 3.3 6.3 6.6 10.3% 7.4%
2.4 2.7 5.2 5.5 5.9
5 4.8
3.6 3.9 4.3
2.9 3.2
3.3 3.5 3.8 12.0% 9.5%
1.4 1.5 1.7 1.9 2.2 2.5 2.8 3.0
0
2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E 2026E
Source: the CIC Report
– 85 –THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
INDUSTRY OVERVIEW
OVERVIEW OF THE ASIA MASSAGE PRODUCTS AND OTHER PERSONAL
WELLNESS DEVICES MARTKET
The chart below sets forth the value chain of the Asia massage products and other
personal wellness devices market.
Upstream Midstream Downstream
Product R&D Brand
OEM Branded retail store
Manufactures
Offline
Product design Authorised store
Massage products
End customers
Raw material supply Specialist retailer, etc.
Beauty products
Metals Wood E-commerce platform
Fitness products
Online
Leather Plastics Online social media
Health monitoring devices platform
Electric Other
parts materials Brand website, etc.
Other products
Source: the CIC Report
The upstream portion of the value chain of the Asia massage products and other personal
wellness devices market includes product R&D, product design and raw material supply.
Product R&D plays an important role in product quality and innovation, and thus companies
with strong R&D capabilities have the competitive advantage of launching products with better
designs and functions faster to respond to the continuously evolving market demand.
The production process comprises the midstream of the Asia massage products and other
personal wellness devices market. The major production models are manufacturing from the
brands’ own factories and partnership with original equipment manufacturers (“OEMs”).
Partnership with OEMs allows brands to take advantage of their professional services,
including reliable quality and timely response, and it enables brands to enjoy lower
manufacturing costs and higher investment returns. Since important value drivers of the
massage chairs market are concentrated in the upstream and downstream portions of the value
chain, partnering with OEMs would not only preserve the competitive advantages of brands but
also provide brands with opportunities to have the best-in-class components built into their
systems without the cost of running their own factories.
Despite the rapid development of online sales channels, offline sales channels especially
branded stores remain essential in the Asia massage products and other personal wellness
devices market. This is because they are important brand touchpoints, and consumers prefer to
see, touch and test massage products before placing an order. Meanwhile, having offline sales
channels would help brands strengthen their reputation and build trust with consumers more
effectively through enhancing consumers’ shopping experience and after sales services,
especially for expensive products. However, with the diverse purchase options, convenient
shopping experience, detailed product information and user reviews provided online, online
sales channels are gaining increasing popularity among Asian consumers.
– 86 –THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
INDUSTRY OVERVIEW
Market size of the Asian massage products and other personal wellness devices market
In 2020, Asia contributed to 45.8% of the total sales of the global massage products and
other personal wellness devices market. The market size of the Asian massage products and
other personal wellness devices market increased from US$11.3 billion in 2016 to US$17.4
billion in 2020, representing a CAGR of 11.4%. It is expected to reach US$29.7 billion by
2026, representing a forecasted CAGR of 9.3% between 2020 and 2026.
The growth of the Asian massage products and other personal wellness devices market is
expected to be driven by rapid growth in the emerging markets in Asia, such as Greater China.
The massage products and other personal wellness devices market in Greater China, which
comprised 55.7% of the Asian massage products and other personal wellness devices market
in 2020, increased at a CAGR of 12.3% from US$6.1 billion in 2016 to US$9.7 billion in 2020.
The chart below sets forth the breakdown of the historical and forecasted market size of
the Asian massage products and other personal wellness devices market by region for the
periods indicated.
Asian Massage Products and Other Personal Wellness Devices Market
Breakdown by Region, 2016-2026E
US$ billion Greater China (Mainland China, Hong Kong, Macau, Taiwan) CAGR CAGR
Singapore and Malaysia 29.7 2016-2020 2020-2026E
30
Rest of Asia
27.1
24.7
25
22.6
20.7 17.4 12.3% 10.2%
20 19.1
17.4 15.7
16.0 14.3
15 14.0 13.0
12.7 11.8
11.3 10.7
9.7 1.3 10.2% 9.5%
8.7 1.2
10 7.6 1.0 1.1
6.8 0.9
6.1 0.8
0.7 0.8
0.5 0.6 10.2 11.0
5 0.5 9.3 10.1% 8.1%
7.6 8.0 8.6
5.4 5.8 6.6 6.9
4.7
0
2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E 2026E
Source: the CIC Report
The size of the Asian massage products market increased at a CAGR of 14.6% from
US$2.9 billion in 2016 to US$5.0 billion in 2020. It is expected to maintain strong growth
momentum to reach US$10.1 billion by 2026, representing a CAGR of 12.4%. The gamers’
massage chairs sub-segment in Asia experienced fast growth from 2016 to 2020 with a CAGR
of 31.6%.
– 87 –THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
INDUSTRY OVERVIEW
The chart below sets forth the historical and forecasted market size of the Asian massage
products and other personal wellness devices market by product category for the periods
indicated.
Asian Massage Products and Other Personal Wellness Devices Market Breakdown
by Product Category, 2016-2026E
US$ billion Massage products
CAGR CAGR
Gamers’ massage chairs
29.7 2016-2020 2020-2026E
30 Household air purifiers
Small beauty care appliances 27.1
Others 24.7
25 10.1
22.6 14.6% 12.4%
9.2
20.7
8.3
20 19.1
17.4 7.4
6.6 3.5 31.6% 25.4%
16.0 2.7
5.8
15 14.0 5.0 2.1
12.7 4.3 1.6
1.4
11.3 3.7 0.9 1.1 6.7 7.3 13.2% 10.1%
3.2 0.6 5.5 6.0
10 0.5 4.6 4.9
2.9 0.4 3.9 4.1
0.3 2.9 3.1
2.5
5 7.8 6.4% 2.3%
6.9 7.0 7.2 7.4 7.5
5.8 6.2 6.6 6.8
5.3
18.9% 8.9%
0 0.3 0.4 0.5 0.6 0.6 0.7 0.8 0.9 0.9 1.0 1.0
2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E 2026E
Source: the CIC Report
OVERVIEW OF ASIAN MASSAGE PRODUCTS MARKET
The Asian massage products market is categorised into (i) massage chairs and (ii) other
massage products which usually target a certain part of the body, such as neck massager, back
massager, foot massagers, fascia guns, etc.
Driven by the aging population, growing awareness of health and wellness, increasing
levels of income, the pursuit of higher living standards, and the expansion of digital marketing
and online sales channels, the massage products market in Greater China is growing at an
accelerated pace. According to CIC, Greater China’s massage products market grew at a CAGR
of 15.5% from US$1.8 billion in 2016 to US$3.2 billion in 2020, and its growth is expected
to continue to outpace the average growth rate of other Asian regions.
– 88 –THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
INDUSTRY OVERVIEW
The chart below sets forth the breakdown of the historical and forecasted market size of
the Asian massage products market by region for the periods indicated.
Asian Massage Products Market Breakdown by Region, 2016-2026E
US$ billion Greater China (Mainland China, Hong Kong, Macau, Taiwan)
12.5 Singapore and Malaysia
Rest of Asia
CAGR CAGR
10.1 2016-2020 2020-2026E
10.0
9.2
8.3
7.5 7.4
6.6
15.5% 14.2%
5.8 6.4 7.1
5.0 5.7
5.0
4.3 5.0
3.7 4.4
3.2 3.8
2.9 3.2
2.8 10.7% 13.8%
2.5 2.4 0.7 0.8
1.8 2.0 0.5 0.6 0.7
0.4 0.4
0.2 0.2 0.3 0.4 2.1 2.2 11.7% 7.8%
1.4 1.6 1.7 1.8 1.9
0.9 1.0 1.0 1.1
0.0
2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E 2026E
Source: the CIC Report
According to CIC, the Asian massage products market grew at a CAGR of 14.6% from
US$2.9 billion in 2016 to US$5.0 billion in 2020 and is expected to reach US$10.1 billion by
2026, representing a forecasted CAGR of 12.4% between 2020 and 2026. In 2020,
approximately 72.0% of the sales of the Asian massage products market came from massage
chairs. The market size of the Asian other massage products market has grown rapidly in recent
years, expanding from US$0.4 billion in 2016 to US$1.4 billion in 2020 with a CAGR of
36.8%.
The chart below sets forth the breakdown of the historical and forecasted size of the Asian
massage products market by product category for the periods indicated.
Asian Massage Products Market Breakdown by Product Category, 2016-2026E
US$ billion
Massage chairs
12 Other massage products
CAGR CAGR
10.1 2016-2020 2020-2026E
10 9.2
8.3
8 7.4
6.6 6.7 9.5% 10.9%
5.8 6.2
6
5.0 5.7
4.3 5.2
3.7 4.6
4 4.1
3.2
2.9 3.6
3.3
2 3.0
2.5 2.7 3.0 3.4 36.8% 15.9%
2.2 2.6
1.7 2.0
0.7 1.0 1.4
0 0.4 0.5
2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E 2026E
Source: the CIC Report
– 89 –THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
INDUSTRY OVERVIEW
OVERVIEW OF ASIAN MASSAGE CHAIRS MARKET
According to CIC, the Asian massage chairs market grew at a CAGR of 9.5% from
US$2.5 billion in 2016 to US$3.6 billion in 2020 and is expected to reach US$6.7 billion by
2026, representing a forecasted CAGR of 10.9% between 2020 and 2026.
The penetration rate of massage chairs refers to the number of massage chairs owned per
household as a percentage of the total number of households in a region. In 2020, Mainland
China’s massage chair penetration rate was 2.0%, as compared to 9.8% in Hong Kong and
Macau and 8.5% in Singapore, which suggests that the massage chairs market in Mainland
China is still underdeveloped. As various key factors continue to drive the growth of Mainland
China’s massage chairs market, the massage chair penetration rate in Mainland China is
expected to reach 5.4% by 2026.
The chart below sets forth a breakdown of the penetration rate of Asia’s massage chairs
market by region for the periods indicated.
Penetration Rate of Asia’s Massage Chairs Market Breakdown by Region, 2016-2026E
% Mainland China Malaysia
18.0% Hong Kong and Macau 17.3%
Singapore
16.4%
Taiwan
14.7% 14.8%
15.0% 13.7%
12.5% 13.0%
11.6% 12.1%
11.4%
12.0%
11.3% 10.6% 10.4%
9.8% 9.6%
9.1% 9.1%
8.7% 9.0%
9.0% 7.9% 8.5% 8.1%
7.3% 7.2% 7.7%
6.5% 6.7%
6.1% 6.4%
5.9% 6.0% 5.4%
6.0% 4.9% 5.3% 5.2% 4.8%
4.7% 4.0%
4.0% 3.6%
3.9% 4.2%
2.9%
3.2% 2.3%
3.0% 2.4% 2.7% 2.0%
1.9% 1.5%
1.3% 2.1% 1.0%
0.3% 0.6%
0.0%
2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E 2026E
Source: the CIC Report
Market size of Asian premium massage chairs market
According to CIC, the Asian premium massage chairs market (comprising brands that
offer massage chairs priced above US$3,000) grew at a CAGR of 10.7% from 2016 to 2020,
as compared to the Asian mass-market massage chairs market (comprising brands that offer
massage chairs priced lower than US$3,000) which grew at a CAGR 9.0% from 2016 to 2020.
Specifically, the total sales of the Asian premium massage chairs market are expected to grow
at a CAGR of 14.5% to US$2.7 billion in 2026, a rate that is much higher than the Asian
mass-market massage chairs segment, which is expected to grow at a CAGR of 8.9% from 2020
to 2026, due to the increasing income levels and consumption upgrade.
– 90 –THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
INDUSTRY OVERVIEW
Offline stores still play a major role in the premium massage chairs market. The retail
sales of premium massage chairs in Asia through offline channels increased at a CAGR of 9.3%
from US$0.7 billion in 2016 to US$1.0 billion in 2020, accounting for approximately 83.3%
of the total retail sales of premium massage chairs in Asia in 2020. Due to the high prices of
premium massage chairs and numerous alternatives at variable prices, consumers prefer to visit
offline stores to see, touch and test the products before making an expensive purchase.
Market Size of Asian Massage Chairs Market Breakdown by
Product Positioning, 2016-2026E
US$ billion Premium massage chairs
CAGR CAGR
Mass market massage chairs
7.0 6.7 2016-2020 2020-2026E
6.5 6.2
6.0 5.7
5.5 5.2
2.7 10.7% 14.5%
5.0 4.6 2.4
4.5 4.1 2.2
1.9
4.0 3.6
3.3 1.7
3.5 1.4
3.0
3.0 2.7 1.2
2.5 1.1
2.5 1.0
0.8 0.8
2.0 3.8 4.0 9.0% 8.9%
3.3 3.5
1.5 2.7 2.9
2.2 2.4
1.0 1.9 2.0
1.7
0.5
0.0
2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E 2026E
Source: the CIC Report
Key growth drivers and future trends for Asia’s massage chairs market
Increasing income levels and pursuit of higher living standards: The rapid growth of
Asia’s economy has increased the region’s mass affluent population, who are individuals with
US$100,000 to US$1,000,000 of liquid financial assets. As a result, an increasing number of
people in developed Asian countries are now able to afford massage chairs, with many being
able to afford the most upscale selections. As for emerging Asian regions, their fast-growing
economies indicate great market potential for massage chairs as the expanding mass affluent
population pursue increasingly higher living standards.
The aging population: Asia’s elderly population, defined as people aged over 65,
increased from 331.5 million in 2015 to 411.6 million in 2020. Seniors are an important target
group of massage chairs, as massages can benefit them by stimulating their blood flow,
softening their muscles and increasing their flexibility. The increasing demand for massage
chairs from the aging population is expected to drive the growth of the massage chairs segment.
Increasing number of people suffering from muscular or other pain from increased
exercise and hectic work schedules: Asia’s increasing wealth and prosperity are attributed to
rising income levels and a large workforce that is highly cognisant of promoting their health,
fitness and life longevity. On one hand, the increasingly busy work schedules of this workforce
have led to a greater demand for massage products to relieve their muscle pain. On the other
hand, there is a trend in such workforce to join gym clubs and exercise after work to relax, and
– 91 –THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
INDUSTRY OVERVIEW
massage chairs are great solutions to relieve muscle stress from exercise. As a result, the
increasing need of relieving muscle stress from both work and exercise drives up the demand
for massage products, including massage chairs and portable massage products.
The adoption of a healthier lifestyle: The adoption of a healthier lifestyle by consumers
in Asia also drives the demand for massage products. With the improvement of living
standards, awareness of health and wellness continues to rise. As consumers pursue a healthier
lifestyle, the use of massage products is increasingly integrated into the concept of a healthy
lifestyle. There is a growing number of people posting pictures of themselves using massage
products, including massage chairs, on social media to demonstrate their adoption of a healthy
lifestyle. The growing popularity of lifestyle sharing platforms has further expanded the impact
of massage products and facilitated the trend of using such products as an adoption of a healthy
lifestyle. Moreover, the COVID-19 pandemic has further elevated the importance of health and
personal care. In the meantime, the flexibility to work from home is expected to be the new
normal under the impact of the pandemic, which further drives up the demand for at-home
fitness and the need for massage chairs.
Millennials’ consumption preference and behaviour: Unhealthy lifestyles and hectic
work schedules have become increasingly severe problems for the younger generation, and
millennials are becoming a potential target consumer group of massage chair brands. The
awareness of health and wellness has been rising rapidly among millennials and is likely to
drive their increasing demand for massage chairs. In addition, product diversification and
online marketing have been making a greater impact on younger consumers who have a higher
internet penetration rate and greater willingness to follow the trend. As a result, the younger
consumers of massage chairs, especially the millennials, have become increasingly crucial for
the market. Thus, major massage chair brands in Asia are expected to launch products that cater
to the younger generation’s consumption preference and behaviour in the future to further
facilitate market growth.
Expansion of digital marketing and online sales channels: The emergence of “new
retail,” a digitalised and integrated omni-channel retail model, has helped massage chair
players leverage the strengths of both online and offline sales channels to deliver seamless and
compelling customer experience. The online sales channel has become increasingly important
for the sale of massage chairs and is expected to generate more sales. Meanwhile, through the
collection and analysis of a large amount of consumer data collected from all channels,
companies are able to manage consumer insights scientifically and use big data analysis to
support product development and marketing strategies.
Broadened application scenarios such as public sharing and interior design: In recent
years, massage chairs have been used in increasingly more scenarios including in public places
such as the airports or as part of interior design. Massage chairs are now placed in public
locations for the general public to use. At the same time, consumers are gradually changing
their views towards massage chairs from being a piece of healthcare equipment to a piece of
home furniture. Specifically, with the pursuit of convenience in consumers’ daily life as a result
– 92 –THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
INDUSTRY OVERVIEW
of increasingly hectic work schedules, people who used to go to massage parlours have started
to utilise massage chairs at home. As a result, massage chairs, particularly the ones with
flexible structures and multiple interactive functions, are gaining increasing popularity among
consumers as home furniture.
R&D and new technologies utilised to make products more personalised: Technology
advancement promotes the continuous upgrading and optimisation of massage chairs, which
now offer massage programmes that can be controlled by software and new massage
programmes that can be downloaded via a wireless network. Since consumers are more likely
to be attracted by massage chairs that can integrate both hardware and software to provide them
with intelligent and personalised massage experiences, such features are increasingly
integrated into massage chairs.
Increasing popularity of premium massage chairs: With increasing purchasing power,
consumers in Asia have become less sensitive about the price of massage chairs and more
focused on their quality and function. Premium massage chairs are manufactured with higher
quality raw materials and equipped with more intelligent functions, thus are more effective in
relieving muscle tension and improving users’ physical and mental wellbeing. Therefore,
premium massage chairs are gaining increasing popularity in Asia.
Entry barriers in Asia’s massage chairs market
Product safety and quality: Product safety and quality are important factors for
consumers when purchasing massage chairs since such products can have a direct impact on
people’s health. To ensure both product safety and quality to build trust with consumers,
massage chair brands need to have continuous and strict control over the entire production
process from raw material selection to product packaging. Companies need to obtain safety and
quality related certification, such as CE (European Conformity), GB (National Standards) and
RoHS (Restriction of Hazardous Substances), to demonstrate their compliance with the
requirements of product safety standards in specific regions before entering into these markets.
Such certification usually takes a long time to obtain even after passing the relevant testing
requirements and is an entry barrier for new market entrants.
Brand reputation: Brand reputation can significantly affect consumers’ purchase
decisions since brands could directly reflect product quality as well as different lifestyle
concepts. Top players with strong brand images are expected to gain more market share and are
better positioned to further develop and expand their businesses. As brand recognition takes a
great amount of time to establish, brand reputation can be a barrier to new market entrants.
– 93 –THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
INDUSTRY OVERVIEW
Efficient supply chain and logistics: Highly efficient logistics are critical to the success
of massage chair brands. Asia’s leading massage chair brands have invested in supply chain
management systems to provide professional, efficient and convenient delivery services. Also,
large-scale massage chair brands tend to have a comprehensive regional warehouse network,
which can ensure timely and direct delivery of products and optimal levels of inventory.
R&D capabilities: Massage chairs are constantly being improved in terms of design,
technology and functionality. Along with the growing level of awareness among consumers
about the designs and functions of massage chairs, various brands are investing more on
product R&D in order to better meet customers’ increasing needs. For example, massage chairs
with downloadable massage programmes are gaining increasing popularity among consumers,
especially the younger generation.
Manufacturing capacity and production scale: Economies of scale is a prominent feature
of Asia’s leading massage chair players, which have developed large manufacturing capacity
and production scale in order to effectively reduce manufacturing cost through streamlined
production and use of machinery. Additionally, only large-scale massage chair players have the
financial and management capabilities to ensure high product quality through refined
management of standardised production and high efficiency in the supply chain.
Sales network: Offline stores play an important role in consumer acquisition, since
consumers of massage chairs prefer to visit physical stores to see, touch and test the products
before making an expensive purchase. Well-developed offline store network helps to increase
the direct exposure of the brands to the consumers. Meanwhile, with the rising prevalence of
online shopping among Asian consumers, online stores also play a vital role in further
expanding the brand impact through enhancing customers’ shopping experiences with detailed
product information, user reviews and convenient purchase options. Without strong online and
offline sales networks, it is difficult for massage chair brands to form brand impact or develop
customer loyalty.
– 94 –THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
INDUSTRY OVERVIEW
COMPETITIVE LANDSCAPE OF THE ASIAN PREMIUM MASSAGE CHAIRS
MARKET
The top five brands in the Asian premium massage chairs market in terms of market
shares in 2020 enjoy higher brand loyalty. With diversification in product portfolio and
constant technological upgrade, OSIM ranked first in the Asian premium massage chairs
market in 2020 in terms of both market share and brand loyalty.
Market Position Analysis of Asia Premium Massage Chair Brands, 2020
Top 5 Asian premium massage chair brands
Other Asian premium massage chair brands
High
Our Company
Company A
Company F
Company C
Brand loyalty
Company E
Company G
Company B
Company D
Company H
Company J
Low
Company I
Low Market share High
Source: the CIC Report
Note:
(1) Based on responses to the CIC Survey. Brand loyalty is defined as the value of net promote scores based
on the CIC Survey.
OSIM and the four other brands in the premium massage chairs market in Asia accounted
for 79.4% of the total market share (in terms of retail sales) in 2020. The rest of the premium
massage chairs market in Asia is fragmented. Within the premium segment, OSIM was the top
brand in Asia with a market share of 26.4% in 2020 in terms of retail sales. The table below
sets out the market share of the top five brands (in terms of sales) in Asia in 2020:
Competitive Landscape in Asia in the Premium Massage Chairs Market, 2020
Market share in
Ranking Company terms of retail sales
1 OSIM 26.4%
2 Brand A 19.1%
3 Brand B 15.4%
4 Brand C 11.5%
5 Brand D 6.9%
Total 79.4%
Source: the CIC Report
Notes:
(1) The retail sales comprise (i) direct sales by each brand based on retail price without discount; and (ii)
distribution sales with retail-end markup by the distributors.
– 95 –THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
INDUSTRY OVERVIEW
(2) Brand A is the brand of a listed company in China focusing on the sales of self-branded massage
products and services.
(3) Brand B is the premium brand of a listed company in China focusing on the sales of self-branded
massage products and services.
(4) Brand C is the massage products brand of a listed company in Japan focusing on home appliance.
(5) Brand D is the brand of a company in South Korea focusing on massage products.
According to the CIC Survey, we have achieved competitive advantages in the following
aspects:
• We achieved the highest net promoter score of 49.7 from customers of massage
products. Net promoter score, which shows the likelihood that customers would
recommend certain products to others, is a commonly used measure for brand value
in market research. It is calculated as (number of recommendations/total number of
respondents)-(number of non-recommendations/total number of respondents)*100%
where “recommendations” means the respondent is likely to recommend the brand
to other people and “non-recommendation” means the respondent is unlikely to
recommend the brand. OSIM’s net promoter score is 1.6 times higher than the
second highest net promoter score.
• Nearly 90% of the respondents stated that they had a positive impression of the
OSIM brand and less than 25% of the respondents has purchased or is aware of other
brands, demonstrating OSIM’s strong brand image in the lifestyle and wellness
products industry.
• 93% of the respondents agreed that we have a competitive edge over other massage
product brands.
• Nearly 65% of the respondents purchased our products through our online
self-operated stores and Own Stores. This indicates that our self-operated channels
have operated successfully and offline channels are of high value to our brand.
• Over 85% of the respondents purchased at least three of our products in the past, and
97% of the respondents indicated that they will continue to buy our products, which
indicates high customer loyalty and stickiness.
OVERVIEW OF ASIA’S OTHER PERSONAL WELLNESS DEVICES MARKET
According to CIC, the market size of the Asian other personal wellness devices market
increased from US$8.4 billion in 2016 to US$12.4 billion in 2020 and is expected to reach
US$19.6 billion by 2026, representing a forecasted CAGR of 7.9% between 2020 and 2026.
Greater China’s other personal wellness devices market has increased from US$4.1 billion in
2016 to US$6.2 billion in 2020, representing a CAGR of 10.9%, making it the fastest growth
market within Asia. Greater China is also the largest market in Asia, accounting for 50.0% of
Asia’s other personal wellness devices market in 2020.
– 96 –THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THE INFORMATION MUST BE
READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT
INDUSTRY OVERVIEW
The chart below sets forth the breakdown of the historical and forecasted market size of
the Asian other personal wellness devices market by region for the periods indicated.
Market Size of the Asian Other Personal Wellness Devices
Market Breakdown by Region, 2016-2026E
US$ billion Greater China (Mainland China, Hong Kong, Macau, Taiwan)
Singapore and Malaysia CAGR CAGR
19.6 2016-2020 2020-2026E
20 Rest of Asia
17.9
16.4
15.2
14.1 9.6 10.9% 7.6%
13.3
12.4 8.8
11.7 8.1
7.5
10.3 7.0
9.5 6.6 0.3 18.9% 7.0%
10 6.2
8.4 5.8 0.3
5.0 0.3
4.6 0.3
0.2 0.2
4.1 0.2
0.2
0.1 0.2 9.7 9.3% 8.3%
0.1 8.0 8.8
6.5 6.9 7.4
5.1 5.7 6.0
4.2 4.8
0 2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E 2026E
Source: the CIC Report
RAW MATERIAL PRICE ANALYSIS
The main raw materials for massage products and other personal wellness devices are
steel and electric components. The charts below set forth the steel price and electric component
price indices in Mainland China for the periods indicated.
Steel Price Index, Electric Component Price Index,
Mainland China, 2016-2020 Mainland China, 2016-2020
Source: the CIC Report
The prices of steel and electric components have generally increased in Mainland China
over the Track Record Period, during which the price index of steel has increased from an
annual average of 129.2 to 181.3, and the price index of electric components has increased
from an annual average of 100.9 to 125.8.
– 97 –You can also read
