Massagers are popular, and Beurer shares surged more than 500% on the first day of listing

Beurergone Technology Co., Ltd. (hereinafter referred to as "Beurergone"), a domestic smart massage small appliance company, landed on the Shanghai Stock Exchange Science and Technology Innovation Board. On the first day of listing, it closed at 171.18 yuan, up 524.74% from the issue price of 27.4 yuan, and its market value reached 10.552 billion yuan.

In recent years, the global market size of massager products has continued to expand, exceeding US$10 billion for the first time in 2015 and exceeding US$15 billion for the first time in 2019. It is estimated that by 2022, the global massage equipment market size will be close to US$18.4 billion.

With the growth of China's per capita disposable income and per capita healthcare consumption expenditure, the enhancement of health awareness, and the expansion of the domestic sub-healthy population, the middle-aged and elderly population, the business and office travel population, etc., modern massage equipment with good massage and health care effects are gradually entering the homes of Chinese people, and the market penetration rate of related products is showing a continuous upward trend.

At present, China has become the fastest growing market for massager products in the world. According to data, from 2010 to 2019, the scale of China's massage equipment market increased from 4.9 billion yuan to 13.9 billion yuan. Even under the sales pressure brought by the epidemic, the market scale reached 14.8 billion yuan in 2020, a year-on-year increase of 6.47%.

With such huge potential in the industry, domestic portable massager brands represented by Beurer have firmly grasped the development opportunities in the smart portable massager industry. As of the end of 2020, Beurer had a total of 165 directly-operated stores in major cities across the country, and this number will continue to increase.

As the potential of the massager industry is gradually tapped, the market competition for portable massagers in China has become fierce. At present, in the massager market, representative brands include foreign brands such as Japan's Panasonic, Singapore's OSIM, and national brands such as Beurer, Ogawa, and SKG. Among the new players, the more typical ones are Xiaomi Youpin, NetEase Yanxuan, and JD Jingzao. Among them, Xiaomi Youpin has launched portable massager products that support Mijia APP control, and JD Jingzao has also launched massage products for eyes, scalp, neck, feet, etc.

Industry insiders believe that the rapid expansion of the portable massage equipment market will, on the one hand, bring tremendous pressure to market supervision within a certain period of time. According to regulatory authorities, massage equipment products are diverse and companies are scattered, and supervision faces many challenges. On the other hand, the rapid influx of many brands and products has made consumers' perception of brands relatively vague, and they are more concerned about the massage products themselves. This is undoubtedly a challenge for each company. However, in the long run, the performance and quality of massage products are the best bargaining chips in the competition, so under strict market supervision and high consumer demands, companies with experience advantages and good reputations will have more opportunities.

Lu Jianguo, deputy chief engineer of China Household Electrical Appliance Research Institute, said in an interview with China Electronics News that there is a big gap in the standards for massagers in China. Currently, there is only the national standard GB4706.10 "Special Requirements for Safety Massage Appliances for Household and Similar Electrical Appliances". In terms of product performance and energy efficiency, my country's massager industry standards are still very scarce. Lu Jianguo emphasized that in the future, the industry must increase the formulation of energy efficiency standards and performance standards, and improve the construction of the standard system as soon as possible. In addition, it is also necessary to strengthen the formulation of health and safety standards.