Beauty in the Business of Care

Japan's wellness sector is in very strong shape. Current estimates place its value at around ¥17 trillion (approximately USD 110 billion), and the number of wellness clinics has surged by 40% since 2020. This growth appears to be fueled by several factors: Japan’s deep-rooted wellness culture, the evolution of advanced medical aesthetic services, and its globally respected safety and healthcare standards. Furthermore, Japan continues to attract medical tourists who seek the country’s high-quality care and wellness experiences, and we’re also seeing Japanese wellness expertise making its way abroad. With this momentum in mind, how do you view the future of Japan’s wellness industry? And what role do you see SBC Medical Group playing in its continued evolution?

Thank you for the question. To begin, I think it's important to consider the structure of Japan’s national healthcare system. We are fortunate to have a public system that offers comprehensive medical care at relatively low costs for all citizens. While this has certainly benefited the population, it has also meant that preventive healthcare hasn't evolved as rapidly as in countries like the United States.

However, as Japan’s economy faces increasing strain and the cost of medical care per individual continues to rise, I believe we will see a shift. People will become more proactive about their health, much like we’ve seen in Western markets. We expect a growing focus on preventive measures — such as fitness, dietary supplements, and wellness routines — to support long-term health.

This cultural shift may not happen overnight, but over the next 10 to 20 years, I believe preventive healthcare will become a major part of Japanese society. SBC Medical Group intends to be at the forefront of that evolution, offering services that support both treatment and prevention, and expanding our role in helping individuals maintain their overall well-being.

I’d like to pivot now to a topic that is widely discussed: Japan’s aging population and declining workforce. Projections suggest a 12% labor shortage by 2040. Yet within this challenge lies opportunity, particularly in anti-aging and regenerative medicine. How does SBC address these demographic trends, and how are you helping older patients maintain physical function and long-term wellness?

Japan is now firmly within what we refer to as a “super-aging society.” There is a heightened public focus on extending healthy life expectancy, not just lifespan. People in their 60s and beyond are increasingly seeking ways to stay mobile, eat well, travel, and enjoy an active lifestyle. This presents a great opportunity for innovation.

At SBC, we see a growing demand for treatments that improve mobility and quality of life. For example, many individuals seek relief from joint pain, which limits daily activity. While people may not always associate this with plastic or aesthetic surgery, we offer regenerative procedures that support joint health and restore physical function, areas we expect will see substantial growth.

Our focus is shifting toward healthy lives, empowering people not only to live longer, but to live better. In addition to our core aesthetic offerings, we are investing in regenerative and orthopedic treatments that address pain management and age-related degeneration.

Looking ahead, given the declining domestic population, the Japanese medical sector has two viable paths for growth: we must either attract more international patients or bring Japanese medical expertise abroad. At SBC, we are actively pursuing both strategies.

SBC delivers high-quality aesthetic and medical care through its extensive network of managed clinics

We know you’ve already established a presence in Vietnam and, since November 2024, have launched operations in Singapore. Currently, SBC operates 21 sites under four brands there. We also understand you plan to expand further into Southeast Asia and the U.S. Let’s begin with the U.S., which is an intensely competitive market. How do you plan to differentiate SBC there?

Our U.S. journey began roughly six or seven years ago. At that time, our goal was to open 10 clinics in 10 years.

However, we learned some valuable lessons. The demand for aesthetic services varies significantly across ethnic groups. We initially focused on the Asian community but quickly realized that the competition in that segment was extremely fierce. Additionally, the U.S. model where success heavily relies on individual physicians posed a risk. If a doctor leaves, the clinic can quickly lose its appeal. This dependency is something we aim to reduce.

From that experience, we refined our business model to focus less on individual practitioners and more on advanced technology-driven services. In Japan, for example, we’ve built a reputation for sourcing and offering the world’s most cutting-edge laser treatment systems machines you cannot experience elsewhere. We’re currently building a similar model in Singapore, and once it’s fully operational, we plan to replicate that success in the U.S.

Overall, our strategy is regional and phased. After establishing a strong base in Singapore, our next target markets are Malaysia, Thailand and Vietnam, where we’re already seeing strong indicators of growth and customer interest. We’ve seen positive momentum, especially in Vietnam, where demand for advanced wellness and aesthetic care is on the rise.

We also have plans to enter Thailand, which aligns with our broader expansion roadmap in Southeast Asia.

Shonan Beauty Clinic; unparalleled customer service

I spent several years living in Bangkok and saw firsthand the high regard that Thai consumers have for Japanese products, including medical aesthetics. Given the strong presence of Korean competitors in this space, what would you say sets Japanese healthcare & medical aesthetics apart?

From a product standpoint, differentiating between Japanese and Korean offerings can be challenging because many of the medical technology  are not patented. However, in technique and finish, there are clear distinctions.

Japanese practitioners excel at subtlety and natural results, especially in procedures like double eyelid creation. Korean aesthetics tend to favor more visibly altered outcomes, which can look artificial to some.

In more advanced or mature markets, patients increasingly prefer such minimally invasive procedures that preserve a natural appearance. In this regard, I’m confident that Japan — and SBC — lead the world in delivering refined, understated aesthetic results. That gives us a competitive edge in Southeast Asia and beyond, where consumer preferences are becoming more sophisticated.

Precision, safety, and advanced aesthetic care are all qualities that define SBC services. 

SBC was founded in 2000 in Fujisawa. Today, you treat over 6.31 million patients annually, with a strong return rate of 72%. Your portfolio spans aesthetic medicine, regenerative medicine, infertility treatment, and hair restoration. Looking forward, which segment do you believe presents the greatest business opportunity?

Outside of aesthetics, I believe the orthopedics segment holds the greatest potential. As our society continues to age, maintaining pain-free mobility will be an increasing priority. Despite the overall decline in population, the demand for orthopedic treatments, particularly those that promote healthy, active aging, will only rise. We are investing accordingly.

Do you have any statistics on how many foreign visitors your clinics receive?

Currently, we serve approximately 17,000 international patients per year, primarily through medical tourism. The largest groups come from China, and we expect those numbers to grow as Japan’s inbound tourism increases. In 2023, for example, Japan welcomed 36.9 million visitors, with a target of 60 million for 2030. To better meet this demand, we are expanding our staff of interpreters and “translation concierges,” particularly for patients who speak Chinese. We’re also developing a custom translation app, with initial support in Chinese, to enhance communication and service quality. In parallel, we are exploring opportunities to expand directly into mainland China.

On a macro level, I’d like to hear your view of Japan’s medical ecosystem. Critics often say the pharmaceutical sector here lags behind the West in innovation, with drug development taking 3–5 years longer. Although former Prime Minister Abe introduced the “Sakigake” system to accelerate development, the results have been mixed. How do you assess the progress of the Japanese development ecosystem over the past two decades?

In terms of medical equipment, I do believe Japan has made meaningful progress over the past 20 years. But when it comes to medical techniques and treatment innovation, we still lag behind our Asian counterparts.

One reason is our national healthcare system, which, while beneficial in many ways, hasn’t incentivized rapid advancement. The system is highly structured, so there's been little pressure to innovate. However, I believe we’re now entering a transition period, where the industry must evolve. To remain globally competitive, Japanese medical companies must either attract international patients or expand their services abroad. SBC is actively pursuing both paths.

We’ve seen a rise in demand for aesthetic medicine among men in Japan — a 29% increase from 2010 to 2022. How are you adapting your branding and services to meet the needs of this growing demographic?

The men’s beauty market is definitely growing. More than 10 years ago, I launched Japan’s first male-only beauty clinic in Shinjuku. Unfortunately, it was too early for the market, and we had to shut it down.

However, about three years ago, we acquired Gorilla Clinic, one of the very few male-specific aesthetic chains in Japan. The clinic has performed exceptionally well, and we are now expanding its footprint as the centerpiece of our male-focused domestic strategy. We believe men’s aesthetics will be a major growth area moving forward.

One of the more surprising elements of our research was your NASDAQ debut via SPAC through Pono Capital 2. That’s quite rare for a Japanese company, given the country’s limited SPAC infrastructure. Why did you choose this route instead of a traditional IPO?

I have a close friend who was one of the first to go public on NASDAQ via SPAC. Through that connection, I began to seriously consider the same route, and by 2022, we had begun preparations. At the time, SPACs were still quite popular in the U.S. However, as we progressed, sentiment around SPACs began to decline. By the time we were ready, the landscape had shifted — but we had already committed too much to back out. So, we went ahead and completed the SPAC listing.

Now that you're listed, are you actively engaging with institutional and retail investors?

Yes, absolutely. We’ve seen increased engagement with U.S. retail investors since our listing. In Japan, we’re working with several securities firms and are currently supported by thousands of investors. Overall, the response has been very positive.

Final question, Mr. Aikawa. SBC was founded in 2000, so congratulations on reaching the 25-year milestone. As you look ahead to the 30th anniversary in 2030, what personal or professional goals are you aiming to achieve?

Thank you. It’s been an incredible journey. Looking toward 2035, we’ve set an ambitious but clear goal: to become the number one medical group in Japan.

Specifically, we want to lead in orthopedics, ophthalmology, and dentistry areas where we see strong long-term demand. My personal dream is to build a comprehensive medical facility that brings together leading experts across specialties, creating a powerful, integrated platform for care. That’s the legacy I hope to create.

For more information, visit their website at: https://ir.sbc-holdings.com/