SBC Medical Group Holdings and MEDIROM Healthcare Technologies Announce Business Alliance

Rhea-AI Summary

SBC Medical Group Holdings (Nasdaq: SBC) has announced a strategic business alliance with MEDIROM Healthcare Technologies. The partnership combines SBC's 224 cosmetic treatment centers with MEDIROM's 300+ relaxation studios in Japan, jointly serving over 4 million loyalty program members.

The alliance aims to leverage their complementary customer bases - SBC's Shonan Beauty Clinic primarily serves women in their 20s-30s, while MEDIROM's Re.Ra.Ku focuses on male customers. An initial co-marketing campaign will run from November 15 to December 15, 2024, offering cross-promotional discounts across 130 Shonan Beauty Clinics and 230 Re.Ra.Ku stores.

Positive

• Strategic expansion of customer base through complementary demographics
• Combined loyalty program reach of over 4 million members
• Access to 530+ combined locations across both networks

Negative

• None.

Insights

Market Research Analyst

This strategic alliance between SBC Medical and MEDIROM represents a significant market expansion opportunity. The partnership combines SBC's 224 cosmetic treatment centers with MEDIROM's 300+ relaxation studios, creating a substantial footprint in the beauty and wellness sector. The complementary customer demographics - SBC's female-focused clientele and MEDIROM's male-centric customer base - present clear cross-selling opportunities.

The combined loyalty program of 4 million members provides a robust foundation for customer acquisition and retention. The initial cross-promotional campaign, while modest in scope, serves as a testing ground for deeper integration. However, the lack of specific financial terms or revenue-sharing details makes it difficult to quantify the immediate economic impact.

Healthcare Industry Expert

The alliance strategically positions both companies in the growing preventive healthcare and wellness market. By combining cosmetic treatments with relaxation services, they're creating an integrated approach to health and beauty services. This move aligns with the global trend toward holistic wellness solutions.

The geographic synergy is particularly noteworthy - SBC's international presence combined with MEDIROM's strong Japanese market penetration creates opportunities for market expansion. The co-marketing initiative starting November 2024 will serve as a important test of customer reception and cross-selling potential. However, success will depend heavily on execution and service integration quality.

Leveraging the strengths of each partner to create synergies and expand the customer base

TOKYO--(BUSINESS WIRE)-- SBC Medical Group Holdings Incorporated (Nasdaq: SBC) (“SBC Medical”, or the “Company”, or “SBC”), a global owner, operator and provider of management services and products to cosmetic treatment centers, today announced a business alliance with MEDIROM Healthcare Technologies Inc. (Nasdaq: MRM) ("MEDIROM"), a rapidly growing company in the healthcare technology field with over 300 relaxation studios in Japan.

SBC Medical Group Holdings Incorporated, a global owner, operator and provider of management services and products to cosmetic treatment centers, today announced a business alliance with MEDIROM Healthcare Technologies Inc., a rapidly growing company in the healthcare technology field. (Graphic: Business Wire)

SBC Medical and MEDIROM, two trusted beauty and wellness leaders that excel in customer-centric experiences, together will create a new way for beauty and wellness enthusiasts to discover exciting and new health treatments. The alliance brings together MEDIROM’s leading brand of relaxation salons and health-related product and service offerings with SBC’s best-in-class cosmetic treatment centers that today serve millions of customers who love the ease, convenience, and value of SBC’s experience.

Together, the two leading healthcare service providers have more than 4 million members across their loyalty programs at SBC’s “Shonan Beauty Clinic” and MEDIROM’s Re.Ra.Ku. In addition to bringing customers enhanced offerings and expertise, the alliance will seek to create compelling, integrated opportunities to harness the power of these loyal customers and reward them when they receive services at SBC Medical and MEDIROM.

Background of Alliance
Based on the concept of " Ultimate Win-Win for All " SBC Medical Group provides management support services to a wide range of medical institutions, including comprehensive cosmetic medicine, dentistry, AGA treatment, gynecology, infertility treatment, ophthalmology, plastic surgery, and regenerative medicine. The Company’s network of clinics, including “Shoan Beauty Clinic”, now numbers 224 worldwide. MEDIROM, under the brand name “Re.Ra.Ku”, operates more than 300 relaxation studios in Japan based on the concept of "health, more, and more innovative," and is developing a diversified business centered on healthcare. The company also focuses on health maintenance and preventive medicine, and continues to innovate in this industry.

Reaching new customers and creation of synergies
In this alliance, both companies have elevated expectations for their different customer segments. Shonan Beauty Clinic is widely supported mainly by women in their 20s and 30s, while MEDIROM's Re.Ra.Ku serves mainly male customers for relaxation and health maintenance. This collaboration is expected to enable the two companies to approach new markets, expand our total customer base, and provide new value. As a first step, during the period from November 15, 2024 to December 15, 2024, customers visiting Shonan Beauty Clinic will receive special invitation tickets to experience Re.Ra.Ku at a discounted price. The two companies plan to continue to deepen their collaboration in stages, aiming to provide new value oriented experiences that offer total support for beauty and health.

Initial Co-Marketing Campaign
Customers visiting Shonan Beauty Clinic and Re.Ra.Ku will receive special invitation tickets for a limited time.

Participating Clinics and Stores
Shonan Beauty Clinic: 130 clinics
Re.Ra.Ku (directly managed stores): 230 stores

Distribution period
Shonan Beauty Clinic: Friday, November 15, 2024 - Sunday, December 15, 2024
Re.Ra.Ku: Sunday, December 1, 2024 - Monday, January 13, 2025

About MEDIROM Healthcare Technologies Inc.
MEDIROM Healthcare Technologies Inc., together with its subsidiaries, provides holistic health services in Japan. It operates in three segments: Relaxation Salon, Digital Preventative Healthcare, and Luxury Beauty. The Relaxation Salon segment owns, develops, operates, franchises, and supports relaxation salons, which provide finger-pressure style bodywork therapy, stretch therapy, and posture and joint alignment, as well as physical therapy elements; and various individual services, including anti-fatigue therapy, athletic support therapy, slim-down therapy, and reflexology.

About SBC Medical
SBC Medical, through its subsidiaries, provides services to support the operation of clinics that deliver highly specialized medical services in the areas of cosmetic medicine, esthetic dentistry, and Androgenetic Alopecia or AGA, primarily in Japan and centered on the SBC Shonan Beauty Clinic Brand. SBC Medical and its subsidiaries now provide management services to a total of 224 franchisees located worldwide. For Global, SBC Medical owns and operates one treatment center in Vietnam and provides management services to one treatment center in State of California in the United States. For more information, visit https://sbc-holdings.com/

Forward Looking Statements
This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. Factors that may cause actual results to differ materially from current expectations include, among other things, those listed under the heading “Risk Factors” and elsewhere in the proxy statement and other materials filed with the U.S. Securities and Exchange Commission. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether because of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur. Past performance is not indicative of future results. There is no guarantee that any specific outcome will be achieved. Investments may be speculative, illiquid and there is a total risk of loss.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241103701498/en/

SBC Medical Group Holdings Incorporated

Hikaru Fukui / Head of Investor Relations

e-mail: ir@sbc-holdings.com

Source: SBC Medical Group Holdings Incorporated

FAQ

What is the business alliance between SBC Medical Group (SBC) and MEDIROM Healthcare?

SBC Medical Group (SBC) and MEDIROM Healthcare have formed a business alliance combining SBC's cosmetic treatment centers with MEDIROM's relaxation studios, aiming to expand their customer base and create cross-promotional opportunities.

When does SBC Medical's (SBC) cross-promotional campaign with MEDIROM start?

The initial cross-promotional campaign begins November 15, 2024, at Shonan Beauty Clinic locations and December 1, 2024, at Re.Ra.Ku stores.

How many locations are involved in SBC Medical's (SBC) alliance with MEDIROM?

The alliance involves 130 Shonan Beauty Clinic locations and 230 Re.Ra.Ku stores, totaling 360 participating locations for the initial campaign.