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Entering Europe, Chinese Beauty Device Brand Ulike Competes in the Hundreds of Billions Market

The Chinese beauty device brand Ulike is set to enter the European market. Ulike recently opened a new office in Paris and has begun recruiting a management team. Data Bridge Market Research shows that the global beauty device market is expected to exceed $100 billion by 2030, reaching $176.39 billion. As a leading brand in the Chinese beauty device market, Ulike’s entry into the European market will create a new competitive landscape for the entire industry.

Ulike turnover reached €770 million in 2022

Founded in 2013, Ulike is a brand under Hangzhou Ulike Technology Co., Ltd. It stands as the pioneering global brand specializing in optical skincare.

By the end of 2023, Ulike has amassed over 100 global patents. Its official online platform and nearly 1,000 offline stores have collectively sold close to 4 million units of Ulike home hair removal devices. These devices have seen strong sales in 17 countries and regions worldwide, establishing Ulike as the preferred international brand for home hair removal devices.

Since 2016, Ulike has consistently held the top position in the sales chart for home hair removal devices for eight consecutive years. The brand has successfully forged deep partnerships with international beauty retail giants such as Sephora, Lotte Duty Free, and CDFG.

In 2022, Ulike achieved a revenue of 770 million euros, marking an 80% growth over the past three years. The company boasts a workforce of 1,200 employees. The group operates four production centers, two research and development centers in China and South Korea, and six offices. The most recent office was inaugurated in Paris.

The opening of the Paris office laid the groundwork for Ulike’s expansion into Europe. Ulike aims to penetrate the European market by leveraging its semi-permanent pulse light hair removal technology and two devices: Ulike Air 2 and Ulike Air 3, priced at 309 euros and 339 euros, respectively.

Wanfia Xia, originally from China, was chosen by Ulike to lead their European and Middle Eastern operations in a bid for its European expansion. She arrived in France in 2011 for her business education and subsequently commenced her professional journey at BETC, initially holding the position of an account director. In 2018, she relocated to Shanghai for an entrepreneurial endeavor with China Data Group.

Additionally, Hervé Bouvier will serve as a consultant for the marketing division. With fifteen years at L’Oréal and twelve years at Estée Lauder, he notably held the role of international vice-president for the Bobbi Brown makeup brand. Since 2019, he has been providing strategic development advice to various brands. Lastly, Gaelle Bouvier, formerly the communications director at the Ieva Group, assumes the role of Communications Head for Ulike’s European operations.

Ulike intends to broaden its retail footprint in France by entering department stores and exclusive networks by early 2024. At present, the brand markets two pulsed light hair removal devices through its online platform. Especially in Asia, Ulike provides additional home-use technologies, including a high-end device priced at over 1,000 euros designed to combat signs of aging.

The global beauty device market is expected to reach $176.93 billion by 2030

In recent years, the global beauty device market has continued to expand, growing at a faster pace than the traditional cosmetics market.

According to Data Bridge Market Research analysis, the value of the beauty devices market was $42.55 billion in 2022, projected to reach $176.93 billion by 2030. It is estimated to grow at a compound annual growth rate (CAGR) of 19.5% between 2023 and 2030 during the forecast period.

In the Asia-Pacific region, the beauty devices market was valued at USD 4852.12 million in 2022 and is expected to reach USD 15689.17 million by 2030, at a CAGR of 15.8% during the forecast period 2023 to 2030. The beauty device market in the Asia-Pacific region holds an 8.86% share of the global market.

Over the past decade, China’s domestic beauty device market has consistently experienced rapid growth. By the end of 2021, the market size had reached ¥9.76 billion, with an impressive average annual compound growth rate of 26.4%. It is projected to approach ¥21.5 billion by 2026. Despite stricter regulatory trends in the previous year, the entire industry has maintained a strong growth trajectory. During the 2022 Double Eleven shopping festival, sales of beauty devices surged by 169%, with a 5% increase in market share, becoming the only sub-category within the entire beauty and skincare market to show positive growth.

According to CHAILEEDO Intelligence data on Douyin and Kuaishou between October 18th and October 26th, Jmoon secured the second spot in the Kuaishou Beauty Ranking. Their Gross Merchandise Volume (GMV) reached an impressive 108 million yuan during this period, placing them as the sole beauty device brand, alongside Prof-Ling, to exceed 100 million yuan in GMV. Additionally, AMIRO secured the sixth position with a GMV of 44.828 million yuan.

Beauty devices are experiencing robust sales not only on Kuaishou but also on Douyin.

As per CHAILEEDO Intelligence data, on October 21st, Jmoon, YA-MAN, and AMIRO all achieved significant Gross Merchandise Volume (GMV) figures. Jmoon led the rankings with a GMV ranging from 50 to 75 million yuan, while YA-MAN secured a GMV between 25 to 50 million yuan, and AMIRO, though slightly lower in comparison, reached 10 to 25 million yuan. Moving to October 22nd, YA-MAN remained on Douyin’s Beauty Ranking, attaining a GMV of 10 to 25 million yuan for that day. Subsequently, on October 24th, AMIRO experienced a breakthrough by surpassing 100 million yuan in GMV, claiming the top spot and doubling the GMV of the second-ranked brand on that day. GEMO, a Swiss beauty device brand, entered the rankings on the same day, securing the eighth position with a GMV ranging from 10 to 25 million yuan.

Based on historical data between 2019 and 2022, sales of beauty devices via conventional e-commerce platforms like Tmall and JD.com rose from 7.6 billion yuan to 11.9 billion yuan, showcasing a compound annual growth rate of 16.35%. Examining Douyin as a case within the live-streaming e-commerce realm, sales of beauty and body instruments soared to 3.269 billion yuan in 2022, marking a remarkable year-on-year growth of 102.22% in the fourth quarter of 2022.

In contrast to four years ago, domestic beauty device brands currently hold sway over the domestic market. Based on market share data from February this year, the leading brands in the beauty device market share ranking were AMIRO, NOWMI, and Jmoon. Notably, Miguang and Jmoon are among the domestic brands in this ranking. Within the top ten, six brands are domestic, with AMIRO taking the lead with a market share of 20.96%.

In April this year, the National Medical Products Administration’s Center for Medical Device Evaluation released the Guidelines for Evaluating the Registration of Radiofrequency Beauty Devices (the Guidelines), aiming to enhance standardization within the beauty device market. Over recent years, beauty devices from domestic brands have become a consistent presence in significant beauty rankings, mirroring the trend seen in domestic beauty and skincare brands.

Under stringent regulations, Chinese beauty device brands may encounter new opportunities

Public information reveals that the Chinese beauty device market began with the entry of companies like Clarisonic and FOREO in 2013. Two years later, brands such as YA-MAN and TriPollar followed suit, collectively capturing significant market shares. Subsequently, domestic brands started gaining prominence, giving rise to a plethora of brands like Ulike, AMIRO, and Jmoon.

Apart from the leading brands, the entire market is flooded with brands existing in a gray area. According to Tianyancha data, there are over 18,000 companies in China with “beauty device” mentioned in their “company name/business scope/product service.” These brands often target the mid-to-low-end market, attracting consumers with the concept of cost-effectiveness, but many of them pose safety risks as they operate beyond regulatory oversight.

The recent intervention by China’s National Medical Products Administration might signify a starting point for the gradual standardization and regulation of the beauty device industry. As per the Guidelines, starting from April 1, 2024, products like radiofrequency treatment devices and radiofrequency skin treatment devices must possess medical device registration certificates to be legally produced, imported, or sold. This implies that products lacking the certification can only be categorized as regular household beauty devices without the ability to advertise medical cosmetic functions. Consequently, radiofrequency-based beauty devices will be classified into two distinct categories: regular household appliances and medical cosmetic devices with therapeutic effects. This suggests a future where the beauty device industry will be divided into different tracks.

The Guidelines not only impose stricter certification standards on beauty device brands and products but also stipulate up to seven common criteria covering product functions, purposes, and usage environments to further ensure safety during product use. Brands seeking product registration certification must provide ten pieces of product-related research data to guarantee that the product development has undergone professional testing and research, effectively delivering the promised effects advertised.

The implementation of the new regulations in the beauty device industry is expected to eliminate many brands lacking qualification certifications and genuine research capabilities. Simultaneously, the entry threshold for beauty device brands will significantly rise, necessitating the acquisition of medical device registration certificates for research and production activities. There will be a heightened requirement for financial investments in product research, experimentation, and manufacturing processes, and research capabilities will be of paramount importance.

Industry experts indicate that radiofrequency beauty devices being categorized under Class III medical devices essentially seal their fate. Online sales of Class III medical devices are not permitted, limiting sales only to qualified offline points of sale, such as medical aesthetics institutions. However, these institutions are unlikely to promote household beauty devices due to fundamental conflicts with their profit models. This situation results in enterprises investing millions in clinical trials but ultimately being unable to sell their products, rendering their initial investments futile.

Despite the potential elimination of certain brands under such rigorous regulations, the development, standardization, and regulation of an industry are essential safeguards. Under this stringent regulatory framework, Chinese domestic beauty device brands may find new opportunities.

The Guidelines stipulate that for imported products if the original country does not regulate them as medical devices, proof of authorization for market sale in the original country must be provided according to regulations. Consequently, it becomes more challenging for imported products to enter the Chinese market, requiring rigorous examination and inspection, potentially impacting the expansion of international brands in China.

“Obtaining Class III medical device certification and compliance requires an investment of several million yuan,” industry insiders stated. However, industries often experience growing pains from inception to maturity. For brands focused on solid capabilities from the start, the new regulations, by eliminating inferior products, could usher in a new wave of opportunities. Many brands view these new regulations as an opportunity rather than an obstacle.

Therefore, the emergence of new regulations for beauty devices might represent an opportunity for Chinese domestic brands. Yet, significant challenges lie ahead in navigating this industry reshuffle, posing a significant dilemma for Chinese domestic brands to strategize.

As the beauty device market transitions from chaos to order, Chinese domestic brands are poised to leverage their local advantages, swiftly rising and gradually capturing certain market shares. This market reshuffle might incline the capital market towards favoring Chinese domestic brands. With increased funding, the technological prowess of Chinese domestic brands is expected to grow, progressively competing with international counterparts. Similar to Ulike, buoyed by technological innovation, Chinese beauty device brands are confident in stepping into the international market.