[Beijing Direct News NetworkJuly 7th] (China business intelligence network)policies:Guolian Securities pointed out that the health care products industry has the characteristics of high customer unit price and repurchase rate. Driven by the improvement of economic level and aging, the industry has a large growth space and is a high-quality track in the future.

Thomson and H & H International have strong comprehensive strength, and Kingway has outstanding ability in category, product and circle breaking. Guolian securities focuses on recommending Thomson and H & H International Holdings, and suggests paying attention to Kingway.

High customer unit price and repurchase rate will open up a blue ocean of health care products market, and the industry scale will exceed 320 billion yuan in the next five years

Health products industry has dual attributes of food and medicine, and its scope is expanding to "functional food" and "serious health products".

According to the prediction of China Business Industry Research Institute and Euromonitor, the scale of China's functional food market will exceed 600 billion yuan in 2022, so from the perspective of broad health care products, it is a huge blue ocean of trillions.

Demand side: the improvement of economic level and the aggravation of aging push up health care demand

Health care products have strong optional consumption attribute, which is a higher level consumption after meeting the basic material needs.

With the increase of per capita GDP and aging in China, the demand for health care products is increasing. In specific categories, consumers' demand for health care products is more refined and scientific. By studying the industry trends in recent years and comparing the health care products market in Japan, Guolian Securities believes that ammonia sugar, probiotics, eye health and oral beauty ingredients are the future advantages.

Industry trend -- from the perspective of industry chain, the business model has changed from marketing driven to product driven

With the gradual maturity of consumer education in the health care industry, the high premium will be transferred from the channel end to the product end.

From the perspective of channels, the sales channels are becoming more and more flat, the direct sales channels are declining, the proportion of which will decrease from 39% in 2015 to 25% in 2020, and the drugstore channels will decrease from 31% to 23%. While e-commerce opened up young customers, the proportion increased sharply, from 18% to 40%. At the same time, thanks to the advantages of customer overlap and convenient purchase, it is expected that maternal and infant stores and professional supermarkets will also be important new channels in the future.

Competition pattern: the market concentration is relatively high, with Cr5 accounting for 31%

The industry is still growing, and the future concentration depends on the intensity of supervision.

From the perspective of specific enterprises, China's leading enterprises are in dislocation competition, with Tomson Beijian and Jianhe catching up. Benefiting from the laying of e-commerce channels and strong product strength, their market share increased from 6.1% and 2.7% in 2017 to 10.3% and 4.4% in 2020, respectively. The rest of Cr5 are weak in e-commerce and product distribution, and their market share has declined to varying degrees.

investment strategy

With the improvement of economic level and the maturity of consumer education, the consumption habits of C-end group are gradually cultivated, and people's willingness to buy health care products is increasing. Moreover, as the main consumer of health care products, the growth of the elderly group has led to the expansion of the overall health care products market. Guolian Securities said it is optimistic about the long-term development of the health care products industry.

At the same time, China's health care demand changes from passive purchase to independent choice, the market ushers in changes, and the high premium end shifts from channels to products. Therefore, under the background of uncertain market structure of health care products, enterprises need to take advantage of the situation before they can soar to the top of the industry. Guolian securities focuses on recommending the leading domestic health care product manufacturer Tomson Beijian, the parent company H & H of Swisse, the largest cross-border e-commerce brand, and the domestic leader of NMN industry jindawei.