Business of looking good glows with work-from-home, mask-wearing

Singapore

THE aesthetics and wellness industry is witnessing an unexpected surge in local demand for cosmetic enhancement procedures, which has made up for some of the loss of earnings from a lack of medical tourism.

A handful of Singapore-listed companies that have ventured into the aesthetic and wellness industry have benefitted from the trend as well. The cosmetic surgery market alone is estimated by a Fortune Business Insights report to be worth US$50.67 billion in 2018 and is projected to reach US$ 66.96 billion by 2026.

The huge uptick in business is attributed to the pent-up demand that is now contained here given that international travel has yet to fully resume.

MWH Medical, which operates multiple aesthetics clinics under The Aesthetics Medical Clinic and Q Aesthetics Clinic, said that its aesthetics business has seen double-digit growth compared with pre-pandemic times, with majority of customers being locals or foreigners residing in Singapore.

Locals who traditionally seek aesthetic treatment overseas now have the opportunity to try out aesthetic services and treatments here, said Michelle Lim, MWH Medical's group chief operating officer.

Catalist-listed Singapore Medical Group (SMG), said that revenue from aesthetic treatments at its SW1 clinics has surpassed pre-pandemic times.

Given that seeking treatment abroad is no longer an option, the local market segment has grown, said Low Chai Ling, founder and medical director of SW1 Clinic.

SW1, which has outlets in Paragon and OUE Downtown Gallery, used to see some 35 per cent of patients hailing from overseas.

Plastic surgeon at Picasso Plastic Surgery Matthew Yeo said that foreign patients used to make up about 20 to 40 per cent of overall patient numbers for most plastic surgeons.

"Many of us are seeing more local patients, partly because some people who were previously intending to seek medical treatment abroad are not able to travel," said Dr Yeo.

Likewise for facial recognition verification service provider Accrelist. The Catalist-listed firm, which had in 2018 dipped its toes into the wellness and aesthetic industry through its acquisition of the Refresh Laser Clinic (now A.M Aesthetics) network, said that demand for aesthetic treatments had returned to pre-pandemic levels by October 2020.

Beyond being unable to travel abroad for a facelift, mandatory mask-wearing has also spurred local demand for various types of treatment.

"People started having skin issues such as acne on the lower face with long hours of wearing their masks, and sought us out for lasers and skincare to clear their skin," said Dr Low.

As such, anti-acne and anti-pigmentation laser treatments were among the most sought-after at SW1 clinics.

Wearing masks has also led to a shift in aesthetic focus towards the eyes.

Dr Yeo said that while eye-related aesthetic treatments have always been popular, he noticed a 20 to 25 per cent increase in demand for such treatments. These include botulinum toxin (sold under brands such as Botox, Dysport and Xeomin) and filler injections around the eye as well as eyelid and eye bag surgeries. (see amendment note)

Meanwhile, Q & M Dental Group's chief operating officer Raymond Ang said that it is "probably the best time" to go for orthodontics treatment (braces) as mask-wearing will be able to conceal braces. The number of patients seeking orthodontics treatment at mainboard-listed Q & M Dental grew by over 20 per cent in December 2020 compared with June 2020 when the "circuit breaker" ended.

In addition, work-from-home arrangements have given people more downtime to recover from invasive treatments.

People can now undergo face transformational procedures such as double eyelid surgery or rhinoplasty (nose jobs) while avoiding being seen by others, according to Dr Low.

She added that there is currently a five-month-long (till May) waitlist for plastic surgery procedures at SW1 clinics with the most popular types of treatment being eye bag surgery and breast augmentation.

Picasso's Dr Yeo also pointed out that people are more willing to come forward for invasive treatments such as breast augmentation and tummy tucks because of the opportunity to recover at home.

With the aesthetic treatment industry gaining greater exposure to the local market, industry players believe that there is further room for growth.

Typically, patients opt to go overseas either for cheaper treatment or to seek treatment from renowned doctors.

While those who are more cost-sensitive will likely wait for borders to reopen, most patients now search for equally reputable doctors locally, said Dr Yeo.

"The private healthcare in Singapore services the high-end market segment, instead of being yet another mass market medical tourism provider as is seen in many developing countries," he added.

MWH Medical's Ms Lim shared similar sentiments saying that the local aesthetic services and treatments offered in Singapore are comparable to the best overseas and is in fact more convenient for individuals here as they can save on travelling time.

SW1's Dr Low said that the consistent and constant increase in the number of clients signal that the domestic market has "huge potential for growth".

However, Phillip Securities research analyst Tay Wee Kuang said that the edge that companies with an aesthetics business arm have over those without is "most likely temporary".

"Instead, I believe that we may see elective treatments recover at a faster pace as there may be a surge in demand after deferring treatments during the pandemic," he added.

At SMG, for instance, other than aesthetic treatments, health screenings were also among services that witnessed an uptick in demand, according to UOB Kay Hian analyst Lucas Teng in a recent report.

He noted that demand for elective medical services remained robust in the second half of 2020. "This could be likely due to the diversion of travel expenditure to healthcare expenditure, as well as an increasingly health-conscious population amid Covid-19," wrote Mr Teng.

Amendment note: An earlier version of this story stated that botulinum toxin refers to Botox. The two are in fact not interchangeable and botulinum toxin is sold under multiple brands such as Botox, Dysport and Xeomin.