The global aesthetics industry, which generates about $300 billion a year, includes a variety of fields, including the medical aesthetics industry, which focuses on non-surgical procedures such as laser, botox and fillers.
From a visit to the annual international conference of the Israeli company Alma, attended by 400 doctors from 37 countries in the world, I learned about the undisputed success of the beauty industry. The aesthetics industry in the world, which brings together several fields, businesses, professionals, products, preparations and services, generates about $300 billion a year. A significant portion of it belongs to the field of aesthetic medicine which focuses on minimally invasive cosmetic procedures such as botox injections and fillers, chemical peeling and laser treatments.
A subgroup that has been growing particularly impressively in recent years is EBD (The energy based devices), aesthetic medicine that uses energy-based devices and technologies such as lasers to perform cosmetic procedures, such as hair removal, treatment of skin defects and liposuction - and it alone generates about $5 billion a year. The medical aesthetics industry as a whole has demonstrated remarkable resilience over the past two decades and has weathered economic crises. It seems that beauty and aesthetics are among the developing fields that are in demand both by investors and by experts, celebrities and the general public. What is the success of the medical aesthetics market?
There are about 2 billion people over the age of 60 living in the world today. Many of them are looking for effective anti-aging solutions to achieve a younger appearance. Compared to expensive and invasive surgical treatments that require surgery, anesthesia and a long recovery time, the medical aesthetics market based on equipment and technologies offers easy customized treatments that enable an extremely short recovery time, reduced pain, lower costs and fewer risks. In addition to the fact that procedures have become simpler and more accessible, social media has played a decisive role in the last decade in shaping the needs and demands of patients.
Masses of influencers throughout the social network are dictating new standards of beauty for the young followers, but also the older population, which is considered more conservative and less influenced, has become more aware of personal appearance, much under the influence of video calls and mobile devices and the many Zoom meetings they hold for various needs. Additional factors for success: the multitude of skin problems that people suffer from at almost any age such as pigmentation and acne, the accessibility of treatments at the local level and even in neighboring countries (medical tourism) and the unlimited access to information on the Internet.
The EBD industry is dominated by a number of large companies in the world, where the largest Israeli company in the field that has become international is Alma, which was founded in Israel in 1999 and currently operates in about 100 countries. The company provides solutions in the fields of medical aesthetics, technologies based on laser, radio waves, plasma and ultrasound. In 2012, Alma acquired the company Quantel Derma, expanded the range of laser applications and improved the qualities of aesthetic precision, which made it a leading provider in the world of innovative technologies in the field of medical aesthetics.
In 2013, she established the Alma SURGICAL surgical division, which offers highly invasive surgical procedures, using laser technology for a variety of solutions in the fields of gynecology, otolaryngology, liposuction, hyperhidrosis and blood vessel treatment.
In the same year, Alma was acquired by China's leading health group Fosun Pharma, which is part of the Fosun Corporation, and from there international growth began: it opened a subsidiary in India (2014), launched the Alma Beauty brand with gentle treatment approaches for beauticians (2015), became the first Israeli company to be listed on the stock exchange Hong Kong (2017), launched its flagship SOPRANO TITANIUM hair removal device (2019) and launched advanced devices for a variety of other aesthetic treatments such as skin rejuvenation, skin firming and body toning (2020). Only last November (2023) Alma opened a branch in Japan, its 11th branch in the world through a sixth subsidiary in the Far East region.
Today, with the beginning of the year 2024 and marking 25 years of specialization in the field of energy-based equipment, the Israeli Alma manufactures and markets devices for laser hair removal, devices for the treatment of skin blemishes or scars, a device for reducing circumferences, solutions for sexual health, solutions for hair growth and more for doctors in the field of aesthetics and dermatologists who can offer their clients effective, advanced and clinically proven treatments. In addition to its leading arm in the field of energy-based instrumentation (EBD), it provides additional solutions in the field of medical aesthetics, including premium materials for injections, skin care creams and products for home use.
Dayan added that Alma's strategic intention is to offer comprehensive holistic solutions in the near future for additional indications, with the aim of providing a complete ecosystem in the fields of health, aesthetics and quality of life. Alma is currently active in over 100 countries, operates 11 subsidiaries in Israel, USA, China, Hong Kong, Japan, South Korea, Australia, Germany, London, Dubai and India, holds over 50 patents and quite a few international awards and employs over from 1,000 employees (380 of them in Israel).
It is traded on the Hong Kong Stock Exchange with a market capitalization of: 3.36 billion Hong Kong dollars (about half a billion US dollars) with a revenue volume of over $350 million. their activity outside of Israel, it still maintains the main part of its activity from the local central headquarters in Caesarea, where sit alongside the senior management team, the development team, the global marketing team, the human resources department and more.
Alma brilliantly managed the corona crisis that broke out in 2020 and affected many areas of the world. In the consolidated financial statements of the parent company (Sisram Medical) for 2021, it presents record results with a 120% increase in net profit with $32.4 million. A year later, for the second year in a row, the company presents a gross profit rate of 57% and another growth of about 20% with $40 million in net profit with total revenues of $354 million. From data published at the time, the company attributes the improvement in profitability mainly to the direct distribution model it implemented in some of the countries in which it operates, Dayan also attributes the success to the global deployment and management capabilities of the group.
Even in the first half of 2023, the company shows an increase in gross profit (5.7%) which results from direct operation and a more profitable product mix. Although the company's headquarters are located in Israel, its largest market is the USA, where it shows a significant growth of approximately 28% in 2022, with revenues of $143 million, with revenues of $98.1 million in Asia (an increase of 15%) And in the Middle East revenues of &36.6 million (an increase of 18.7%), thanks, among other things, to a switch to direct marketing from Dubai.
Regarding the war that broke out in Israel last October and its effects on the company's global operations, Dayan says: "Our team has dealt with crises and changes in the past like the Corona virus, but no crisis can be compared to the war that broke out in Israel. This is a very complex time on a personal and national level. Although on a business level we were not hurt, but we experienced Big challenges when key workers went to the reserves or women whose children or husbands fought on the front.
The conference that was planned to be held in November 2023, was difficult for us to hold at the time, so we postponed it for now." "Success in the medical aesthetics industry maintains an upward trend thanks to people who want to feel good," says Lior Dayan, "The post-corona period has resulted in higher demands than ever and the winning protocol today is combinations between injected products and therapeutic laser equipment. The combination of techniques and technologies brings much better results."
When asked what the next thing Alma is planning for the global market, Dayan answered "We understand that means for home use is the next thing. Since we know how to sell to doctors and not to the end consumer, our big challenge is to help doctors maximize the results of the treatments they perform in the clinic, using home equipment that the patient can purchase and apply by himself. A home device that may cost around $800 will be able to do this. Using the LED lighting produced by the home device, patients will be able to prepare their skin for treatment at the clinic. Our goal is to build an ecosystem that combines technologies alongside added value for doctors, who are actually our customers." .
This month Alma held its 6th annual conference Alma Academy, which is considered a professional and leader in the international medical aesthetics industry. The popular conference, which was previously held in Greece, North America, Spain, Dubai and Italy, was held this year for 4 days in Barcelona with the participation of approximately 400 specialist doctors from 37 countries around the world, including dermatologists, aesthetic doctors and plastic surgeons who were able to keep up to date with the latest innovations and trends, strengthen ties professionals, make new connections and learn practices from the world's best experts in skin regeneration, treatment of challenging skin conditions, scars and body shaping, also through live demonstrations of treatments in combination with the company's award-winning products.
During the 4 days of the gathering, the hundreds of participants, in addition to expanding their professional knowledge, also enjoyed social events that help nurture the community in a fun way. Every evening there was a prestigious event in a different style and the investment in the event is considerable. The interactions took place not only on the basis of the professional aspect but also in an experiential way with a lavish gala event, a tumultuous dance party and a classic dinner held in a particularly impressive local winery, with a procession of waiters in tuxedos, plenty of local foods, performances and flamenco dancers for a happy party saturated with alcohol and smiles. Specialist doctors who walked around during the day dressed in suits, looked relaxed and happy on the dance floor. "The main goal of the conference is to share knowledge, help our clients, the doctors, maximize the value they offer to their clients and foster the aesthetic medicine community in the world.
The road may be expensive, but in the long run this is the right way to tell our story." The hundreds of conference participants who came from 37 different countries were greeted by the flags of their countries and the atmosphere was united international. The Israeli team walked around during all days of the conference with Israeli insignia and yellow lapel pins which represent support and hope for the release of the kidnapped. "In the shadow of the war, we have strong support from the board of directors of the parent company, they believe in us and our work and that means a lot. As a strong Israeli society, we have a national responsibility to reduce the knowledge gaps of people from the world about Israel. A conference is another platform for us to say that we are proud Israelis," Dayan noted.
In the last year, Alma has been making a change in the company's marketing strategy. If until now the company has focused on marketing to doctors and owners of aesthetic institutes, the company made a decision to build the Alma brand among the general audience of patients as well - to create demand from the bottom up. Last September, Alma announced the selection of Hollywood actress Kate Hudson as the brand's international ambassador. In a campaign entitled "Look Beyond the Trend", Hudson emphasizes the importance of reliable and clinically proven aesthetic solutions compared to fleeting viral trends such as using snail slime for skin rejuvenation or hair removal using egg white. The campaign that went up on social networks and other digital platforms, has gone viral and is being echoed around the world."
Tal Borgen Rosen, Alma's VP of Global Marketing shares: "We didn't settle for an influencer who would say I love Alma, we chose someone international who would know how to convey an authentic message. Kate is like that, she knows our results and believes in them. We didn't even have to write the text for her, she knew exactly what she wanted to say and it succeeds, as real as it is, in penetrating the target audience." The writer was a guest at the annual international conference held by the Alma company earlier this month in Barcelona