SBC Medical Accelerates Multi-Brand Strategy with ‘SBC NEO Skin Clinic’ Expansion

Rhea-AI Summary

SBC Medical (Nasdaq: SBC) has announced a significant expansion of its multi-brand strategy with the launch of 'SBC NEO Skin Clinic' in Ebisu on April 2, 2025. This initiative marks a strategic shift from traditional surgical procedures to non-invasive dermatological treatments.

The new clinic brand, launched by Shonan Beauty Clinic on its 25th anniversary, aims to make advanced aesthetic treatments more accessible and affordable. It will feature state-of-the-art laser devices and dermatological treatments popular in South Korea and Western markets.

Following its Nasdaq listing in September 2024, SBC Medical is focusing on capturing domestic demand from consumers who previously sought treatments abroad, particularly in South Korea. The company's strategy involves combining short-term effectiveness with long-term maintenance solutions to attract a broader customer base.

Positive

• Strategic expansion into non-invasive treatments market through new brand launch
• Potential revenue diversification through capture of international treatment seekers
• Leveraging established 25-year market presence to enter new market segment
• Recent Nasdaq listing enhancing global market access and expansion capabilities

Negative

• Entering highly competitive non-invasive treatment market
• Significant investment required for state-of-the-art equipment and new clinic establishment

Insights

Financial Analyst

SBC Medical's multi-brand expansion strategy represents a calculated diversification play that should strengthen the company's market position in Japan's aesthetic medical sector. The launch of SBC NEO Skin Clinic creates a new revenue stream focused on non-invasive dermatological treatments, complementing their established surgical cosmetic procedures.

This strategic pivot addresses two key market opportunities: capturing domestic demand currently flowing to overseas providers (particularly South Korea) and tapping into the growing consumer preference for less invasive treatments. The timing is particularly strategic following their September 2024 Nasdaq listing, demonstrating to investors that management is executing on growth initiatives.

From a business model perspective, non-invasive treatments typically generate smaller per-procedure revenues but offer higher treatment frequency and better customer retention. This could potentially create more predictable, recurring revenue patterns that investors generally value. The approach of combining "short-term effectiveness with long-term maintenance solutions" suggests a focus on lifetime customer value rather than one-time procedures.

While financial projections and capital requirements for this expansion aren't specified, the initiative aligns with global aesthetic industry trends toward multi-modality treatment centers that can serve broader customer segments. For a company with a $378 million market cap, this strategic expansion could meaningfully contribute to growth if executed successfully.

Healthcare Industry Specialist

SBC's expansion into non-invasive dermatological treatments through the NEO Skin Clinic brand demonstrates market-responsive positioning in the evolving aesthetic medicine landscape. The company is correctly identifying the maturation of the surgical aesthetics market and the growing consumer preference for less invasive options with minimal downtime.

Particularly noteworthy is their focus on importing advanced technologies and treatment protocols from South Korea and Western markets. South Korea has established itself as a global innovation hub for skincare technologies, and SBC's strategy to domesticate these offerings in Japan addresses a clear market gap. This approach effectively captures demand that was previously leaving the Japanese market.

The customized treatment approach mentioned will be crucial for success, as personalization has become a key differentiator in premium aesthetic services. By pairing "short-term effectiveness with long-term maintenance solutions," SBC is positioning itself within the high-value continuity care model rather than the traditional one-off procedure approach.

From a competitive standpoint, SBC's ability to "swiftly integrate the latest technological advancements" will be essential in this rapidly evolving space where new devices and protocols emerge frequently. Their established network position as "Japan's largest aesthetic medical network" provides the scale advantages necessary to negotiate favorable terms with technology providers and distribute fixed costs across a larger patient base.

TOKYO, March 31, 2025 (GLOBE NEWSWIRE) -- Shonan Beauty Clinic, supported by SBC Medical Group Holdings Incorporated (Nasdaq: SBC) ("SBC Medical," or the "Company") in management services, today announced the expansion of its multi-brand strategy as part of its long-term growth plan. As part of this initiative, Shonan Beauty Clinic, an SBC-affiliated entity, will open "SBC NEO Skin Clinic Ebisu" on April 2, 2025 (tentative).

Celebrating its 25th anniversary, Shonan Beauty Clinic operates Japan’s largest aesthetic medical network, setting industry benchmarks through its high-cost performance and advanced medical expertise. In line with its vision to make cutting-edge aesthetic treatments more accessible and affordable, the Company has launched a new clinic brand, "SBC NEO Skin Clinic." This brand is dedicated to non-invasive aesthetic dermatology, leveraging state-of-the-art laser devices and dermatological treatments highly regarded in South Korea and Western markets. By adopting a customized treatment approach, "SBC NEO Skin Clinic" aims to expand the advanced skincare market and offer tailored solutions to diverse customer needs, strengthening SBC’s market position and diversifying its revenue base.

Expansion of Market Opportunities through New Business Development
As the aesthetic medical market continues to mature, SBC Medical is actively advancing a multi-branding strategy to address increasingly segmented consumer needs. "SBC NEO Skin Clinic" represents a strategic shift from conventional surgical aesthetic procedures to non-invasive dermatological treatments, unlocking new growth opportunities within SBC’s business model. The brand is also positioned to capture demand from consumers who previously sought aesthetic treatments abroad, particularly in South Korea, by providing comparable advanced skincare solutions domestically. By combining short-term effectiveness with long-term maintenance solutions, the new brand aims to attract a broader customer base. Furthermore, SBC Medical will enhance its competitive advantage by swiftly integrating the latest technological advancements, ensuring its business model remains adaptable to evolving market needs.

Strengthening Business Foundations for Sustainable Growth
Following its Nasdaq listing in September 2024, SBC Medical is accelerating its efforts to expand its global presence through new brand development and diversified business portfolios. Through this initiative, the Company remains committed to fulfilling its corporate purpose: "Enhancing people's well-being through medical innovation." SBC Medical will continue to pursue sustainable business growth while enhancing shareholder value and strengthening its position as a leader in the global aesthetic medical industry.

About SBC Medical
SBC Medical, headquartered in Irvine, California and Tokyo, Japan, owns and provides management services and products to cosmetic treatment centers. The Company is primarily focused on providing comprehensive management services to franchisee clinics, including but not limited to advertising and marketing needs across various platforms (such as social media networks), staff management (such as recruitment and training), booking reservations for franchisee clinic customers, assistance with franchisee employee housing rentals and facility rentals, construction and design of franchisee clinics, medical equipment and medical consumables procurement (resale), the provision of cosmetic products to franchisee clinics for resale to clinic customers, licensure of the use of patent-pending and non-patented medical technologies, trademark and brand use, IT software solutions (including but not limited to remote medical consultations), management of the franchisee clinic’s customer rewards program (customer loyalty point program), and payment tools for the franchisee clinics.
For more information, visit https://sbc-holdings.com/ 
SBC NEO Skin Clinic：https://www.sbc-neoskinclinic.jp/

Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only the Company’s beliefs regarding future events and performance, many of which, by their nature, are inherently uncertain and outside of the Company’s control. These forward-looking statements reflect the Company’s current views with respect to, among other things, the Company’s product launch plans and strategies; growth in revenue and earnings; and business prospects. In some cases, forward-looking statements can be identified by the use of words such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” “targets” or “hopes” or the negative of these or similar terms. The Company cautions readers not to place undue reliance upon any forward-looking statements, which are current only as of the date of this release and are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. The forward-looking statements are based on management’s current expectations and are not guarantees of future performance. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. Factors that may cause actual results to differ materially from current expectations may emerge from time to time, and it is not possible for the Company to predict all of them; such factors include, among other things, changes in global, regional, or local economic, business, competitive, market and regulatory conditions, and those listed under the heading “Risk Factors” and elsewhere in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov.

Contacts
SBC Medical Group Holdings Incorporated
Hikaru Fukui / Head of Investor Relations
e-mail: ir@sbc-holdings.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7686745c-4d27-44d4-ab4e-2f5d6c399aa7

FAQ

When will SBC NEO Skin Clinic Ebisu location open?

SBC NEO Skin Clinic Ebisu is scheduled to open on April 2, 2025 (tentative date).

What types of treatments will SBC NEO Skin Clinic offer?

The clinic will specialize in non-invasive aesthetic dermatology using state-of-the-art laser devices and dermatological treatments common in South Korea and Western markets.

How does SBC NEO Skin Clinic fit into SBC Medical's growth strategy?

It represents a strategic shift from surgical procedures to non-invasive treatments, aiming to capture domestic demand and diversify revenue streams.

When did SBC Medical (SBC) get listed on Nasdaq?

SBC Medical was listed on Nasdaq in September 2024.

What market gap is SBC NEO Skin Clinic targeting?

The clinic targets consumers who previously sought aesthetic treatments abroad, particularly in South Korea, by providing comparable advanced skincare solutions domestically.