In the world of wrinkles and frown lines, a higher percentage of people in China have taken aesthetical treatments than in the U.S.
That’s the finding of a global study by Merz Aesthetics and explains why the Raleigh-based company is pushing hard into China. The recent introduction of two injectables, Xeomin and Radiesse, adds to its initial foray about a year ago targeting customers, primarily women, seeking more youthful skin and better self images.
By revenue, CEO Bob Rhatigan expects “China to be one of, if not the fastest, growing market for us over the next three to five years.” Over the next decade, he anticipates it emerging as one of the top three of Merz’s 29 markets spanning the globe.
Based on a survey of 15,000 people in 15 countries, Merz’s study released last year found that 68% of Chinese respondents have had an aesthetics treatment, compared with 35% in the U.S. The results bolstered the company’s resolve to compete in China.
China “is kind of blue ocean, a new area for us,” Rhatigan said in an interview last week. He explained Merz is entering the country against two established rivals that have invested in building the aesthetics market. “We’re real excited to come into an established large market,” he said.
Privately held Merz generates more than $1.5 billion in annual revenue. Globally, as well in China, it trails two publicly traded pharmaceutical companies, North Chicago, Illinois-based AbbVie and Swiss-based Galderma. AbbVie owns the Botox brand.
Merz competes in the $16.8 billion global market for injectables and energy-based devices.
Raleigh is home to Merz Aesthetics’ global headquarters, North America region headquarters and R&D center, with a focus on innovations around its energy-based technology. Those operations employ about 350 people, while the company has more than 3,200 employees globally. It’s one of the core businesses of Germany’s family-owned Merz Group.
