M20 is accelerating its entry into the US healthcare market in collaboration with Ceragem. The two companies aim to maximize synergy by leveraging M20’s diverse content and Ceragem’s extensive network.
Establishing a Local Subsidiary in LA and Collaborating on MYO Home Sales
According to the healthcare industry on the 25th, M20 recently established a local subsidiary in Los Angeles (LA) and is in the final stages of coordinating a sales partnership for its self-developed medium and low-frequency EMS (Electro Muscular Stimulation) device, MYO Home, with Ceragem’s US subsidiary.
M20 specializes in fitness equipment and medical devices based on its proprietary medium and low-frequency muscle stimulation technology, CMB. They have developed all core technologies, including the medium and low-frequency generation technology, CMB suit, and service platform, and hold numerous related patents. Their flagship product is the smart home training equipment, MYO Home.
The two companies plan to focus on enhancing consumer accessibility to MYO Home and increasing its local recognition. They will utilize Ceragem’s network of direct stores. Ceragem operates one experiential cafe, Wellounge (known as Wellcafe in Korea), in West Hollywood, LA, and 14 other direct stores across the US.
Ceragem’s collaboration with the small and medium-sized enterprise M20 stems from a need for change. Ceragem began its global expansion in 1999, entering markets such as China, India, and Europe. However, the US market remains a challenging area for Ceragem. Last year, Ceragem Group achieved 184.5 billion KRW in global sales, with the largest portion from China (129.5 billion KRW). While US sales increased by about 90% in 2022 due to direct store expansion, this was significantly influenced by the low base effect.
Ceragem faces stiff competition in the US from established Japanese companies and cost-effective Chinese firms. Moreover, their primary product, massage chairs, has a limited customer base. Despite the message of “Relax, Recharge, Repeat” targeting urbanites at their Wellcafe in the US, Ceragem’s image as a massage chair specialist primarily attracts Asian and middle-aged customers.
MYO Home Expected to Complement Ceragem’s Shortcomings
M20’s MYO Home can address Ceragem’s weaknesses. MYO Home is highly suitable for current trends, offering not only functionality but also design and convenience. In addition to its primary functions of skeletal muscle measurement and strengthening, MYO Home provides various healthcare services such as body composition analysis. This allows users to efficiently assess and improve their health at home, in gyms, or hospitals. Last year, MYO Home received FDA approval as an EMS medical device, marking M20 as the first Korean company to achieve this for an EMS medical device.
M20 plans to integrate artificial intelligence (AI) functionality into MYO Home within the year. They will add AI-based facial and voice recognition features. Consumers will receive services and recommendations from MYO Home, including body composition analysis, personalized exercise programs, exercise time tracking, body shape management, and diet management, all based on facial recognition through the MYO Home smart mirror display.
Additionally, users will be able to earn “MYO Coin” as rewards for achieving their fitness goals. This coin can be used to purchase and pay for health supplements and diet plans. In February last year, M20 introduced the world’s first IoT-based healthcare platform cryptocurrency, MYO Coin.
In the future, the two companies are expected to work together on obtaining FDA approval for M20’s muscle atrophy treatment device. M20 is currently conducting clinical trials to address muscle atrophy issues in patients with mobility impairments due to conditions like stroke and ALS. Professor Seok-Won Jeong of Konkuk University Hospital’s Orthopedic Surgery Department has recently confirmed the treatment’s efficacy in muscle recovery and atrophy prevention through clinical trials. Upon successful completion of these trials, M20 plans to apply for FDA approval for the muscle atrophy treatment device. According to market research firm Fortune Business Insights, the US medical device market is projected to grow from $192.8 billion in 2023 to $291 billion in 2030.
An M20 representative stated, “We are expanding our collaborations to increase our sales in the US market. Ceragem, with its extensive experience and infrastructure in the local market, will provide significant synergy for us.”