The tide of new consumption noted that, according to the National Health Commission and the Prospective Industry Research Institute statistics, as early as 2019, China's oral health care market size reached 103.5 billion yuan, officially breaking through the 100 billion mark, and the compound growth rate reached 16.12%.
Orthodontics with "medical beauty" attributes of the growth rate is exaggerated, invisible orthodontic gradually become a strong driving force: the customer unit price of up to 5-8 million, the compound annual growth rate of 54.6%, the gross profit margin of 50% -70%, the industry appeared a number of listed companies with annual revenue growth of more than 20%.
A mouthful of white teeth, a small BMW; orthodontic braces, poor people back a little. The first batch of young people in the dental clinic, which can easily start at 10,000 yuan, have gone bankrupt because of dental care.
Once upon a time, "glow-in-the-dark white teeth" were still the exclusive property of our black friends, used to find companions in the darkness of the night. But nowadays, porcelain teeth have become the standard in the domestic entertainment circle, without a mouthful of bright to play "luminous teeth", which is good enough to call themselves the top stream?
Hu Haiquan was once teased by Wang Jianguo on the "Spitting Assembly" for having a mouth full of flashing lights, and Li Jiaqi was once pushed into the hot search for a mouthful of big white teeth.
Celebrities were originally the wind vane of the face value market, "orthodontic whitening" of the dental economy wind mouth, began to release to the broad consumer market.
There are three major branches of the oral economy, one is implantation, the second is orthodontics, the third is pediatrics, and the "Others" category includes scaling, whitening, and tooth filling.
The Third Epidemiologic Survey of Oral Disease Report shows that the oral prevalence rate of the Chinese population is as high as 97.6%, and only 0.22% of the population meets the oral health standards.
Among them, 97% of adults suffer from dental calculus, 88% suffer from dental caries, and 85% have gum problems, which, together with tooth sensitivity, bad breath, dental stains, and dental plaque, constitute the 7 most common oral problems faced by Chinese people.
CBNData's Healthy Living Consumption Trend Report mentions that "oral health" not only affects daily life and physical health, but also social self-confidence and appearance value.
Survey data shows that 72% of consumers believe that oral problems affect social confidence, and 67% of consumers believe that oral problems affect the appearance of the face value. In the eyes of many consumers, cosmetic dentistry is the same as plastic surgery.
Data from the China Orthodontic Consumer White Paper points out that there are currently 378 million potential patients in China. But at the same time, China's invisible orthodontic market is still in its infancy, a blue ocean market.
Nowadays, the awareness of oral care has awakened from the young generation, and "beautiful teeth" has become a necessity, and a huge market space has been released.
According to the "2020 China Oral Healthcare Industry Report", in 2020, 26% of the oral consumer users, 20-25 years old, 26-30 years old users accounted for 33%, after 90 is still the main crowd. Tmall International data also shows that the imported oral products in all age stages of the per capita consumption of the new rise in the 95 per capita consumption of the fastest growth rate, crowd consumption accounted for more than 50%.
The rise of the oral economy, on the one hand, because of the trend of consumer upgrading and the awakening of health, value consciousness, on the other hand, is also due to the supply side in the publicity and other aspects of the reverse push.
The brand side is best at grasping the pain points, so as to cater to consumer preferences, many oral care brands began to play in the marketing of "oral beauty" and other concepts, in the past, dental hospitals so that people can not look at the "sick teeth" publicity pictures, has long been replaced by star spokespersons. The first time I saw this, I had to go to the hospital to see the doctor, and then I had to go to the hospital.
And implants and orthodontics has become a gold mine for the industry, not only because of the rising number of consumers and demand, but also because of the rising unit price.
The recent orthodontic Li Jin (a pseudonym) said to the tide of new consumer, has gone to private dental institutions for consultation, according to his dental condition, the cost of wearing invisible braces more than 50,000 yuan.
And the price of the hospital is not much difference, he has been in Beijing Chaoyang District and Haidian District of the two dental hospitals to consult, a public hospital orthodontic price is the same not less than 40,000, a private dental hospital offer even more than 80,000 yuan.
Usually the orthodontic process lasts between one and two years, and traditional metal braces need to be kept on throughout the process, while invisible braces can be removed at any time, but usually need to be replaced in half a month or so.
Compared to traditional "big teeth" braces, invisible braces are aesthetically pleasing and allow for a more natural transition to beauty, but they come with a high price tag.
Another gold mine in the dental economy - dental implants, "sky-high" reputation has spread far and wide a few years ago, "planting a mouth is equivalent to buying a BMW, "The teeth are equivalent to buy a suite in the county" is not simply from the consumer's experience, but also appeared in the National People's Congress, dental experts in the two sessions of the proposal.
20,000 yuan to start, the average price of more than 50,000 yuan orthodontic price, and the price of nearly 10,000 yuan per unit price of dental implants, the main force of consumption of the oral economy, mainly after the 90s, is undoubtedly a huge sum of money.
In addition to dental implants and orthodontics, these two high customer unit price gold mine, the customer unit price is lower but more frequent program is also not to be ignored as a driving factor. Ai Rui consulting data show that in the continuous growth of oral consumption, the number of consumers accounted for 67% of the scaling program, 13% of fillings, whitening accounted for 8%.
Undoubtedly, in addition to health consciousness, pay for the value has become the core driving force of the oral economy.
The rising market size tells the story of the dental economy from another perspective: expensive is not a disadvantage of the product, nor is it an obstacle to popularization.
Over the past decade, China's oral economy market as a whole has shown a steady growth trend. after the market size of over 100 billion in 2019, it is expected that in 2022, the market size will reach 140 billion yuan.
The oral economy industry continues to grow at a high rate, and oral medical aesthetics has become a trend, with capital and entrepreneurs starting to pour in.
There is a saying in the capital circle about the medical industry: "gold eyes, silver teeth, copper bones", ophthalmology, dentistry, orthopedics, three areas in the medical and health track is quite popular with the capital, of which the "teeth", is the hottest track in the capital market in recent years. One of them is "teeth", which is the hottest track in the capital market in recent years.
According to "an enterprise information query platform" Institute released this year, "nearly ten years of oral and dental track investment and financing data report", since 2011, ten years, oral and dental track disclosure of financing amount of more than 16.9 billion yuan, financing events up to 389.
Specific to the annual financing amount, "a business information query platform" data show that in the ten years since 2011, the dental track financing fluctuation fluctuation, but the overall high.
The total amount of financing in 2018 reached the highest in a decade, ***3.913 billion yuan, *** counting 53 cases; and 2021 is not even halfway through the year, the amount of financing in the oral and dental track has reached 2.914 billion yuan, *** counting 26 cases, and the full-year data is expected to break new highs.
Another data from "an enterprise information query platform" shows that 1,703 oral healthcare-related enterprises were registered in 2010, and by the end of 2020, the number had reached 135,500, a ten-year increase of nearly eight times.
From the perspective of the industry chain, the dental economy consists of upstream medical devices and medical supplies, midstream oral healthcare service providers and distributors, and downstream oral healthcare institutions.
Relevant data show that the market size of China's oral device market reached 23.371 billion yuan in 2019, an increase of 9.50% from 21.340 billion yuan in 2018, and it is expected that the market size of the oral device industry will reach 28.83 billion yuan in 2021.
Compared with traditional oral CT, intraoral scanner, high-end orthodontic brackets and other machinery that need to be imported, domestic instruments have begun to cut in from many angles and form a substitute, such as CBCT (cone beam CT), oral scanner, orthodontic products and so on.
With the rise of invisible orthodontics, domestic brands have already taken up nearly 70% of the market share in the invisible aligner market, represented by Times Angel and Invisalign.
In June of this year, Times Angel was listed on the Hong Kong Stock Exchange, with a current market capitalization of more than 70 billion Hong Kong dollars, and its prospectus reveals the secrets of the invisible orthodontic industry.
In 2020, the market share of Times Angel and Invisalign in the domestic invisible orthodontic market, measured by cases reached, totaled 82.4%, of which Times Angel accounted for 41%, with a gross profit margin of over 70%.
The four mainstream invisible aligner products of Times Angel are priced at more than $20,000, which "guarantees" the high unit price of invisible orthodontics from the source.
In the midstream oral health care services, oral health care institutions, the main business includes oral surgery, oral medicine, oral restoration, oral orthodontics, teeth whitening.
And in the more segmented track of oral services, pediatric dentistry, implantation and orthodontics are known as the troika of the oral economy. Among them, implants accounted for 32%, pediatrics accounted for 18%, orthodontics accounted for 25%, and the integrated market accounted for 25%.
The prospectus of Jiahong Stomatology, which is sprinting for A-share, reveals the code of profiteering in the dental implant industry: in 2018-2020, the gross profit margin of the main business of Jiahong Stomatology was 49.74%, 47.58% and 43.21% respectively.
Dentures costing hundreds of dollars are sold for thousands or even tens of thousands of dollars after entering the consumer market, and again, the pricing power is firmly controlled by the medical institutions. CCTV finance report has mentioned that the current dental implants, depending on the material, the cost of each between 8,000-20,000 yuan, planting a full mouth of teeth, the cost of 10-500 million yuan. And if you do a digital aesthetic program, which is also known as dental all-ceramic veneers, the cost is around 100,000 yuan.
Downstream medical institutions, roughly divided into public and private institutions, including general hospitals, dental specialties, dental hospitals, dental clinic chains and individual dental clinics.
And from the perspective of consumption, oral and dental institutions can be subdivided into dental service institutions (mainly orthodontic teeth and implants, etc.), dental materials (implantation, orthodontic new material research and development and manufacturing), the Internet oral health care (oral health care information technology, oral and dental apps, online service platforms, etc.), as well as oral health care (dental cleaning, mouthwash, etc.).
Among them, "an enterprise information query platform" data show that the financing amount of dental service organizations is the largest number of financing amount, the financing amount of 130 in ten years, the total amount of nearly 10 billion yuan, mainly Bayer Dental, Ruier Dental and so on.
At the same time, oral health care also rode on the "Internet +" express, disclosed financing amounted to 1.765 billion yuan, financing events up to 95.
The 2020 Oral Healthcare White Paper shows that the O2O model of purchasing services online and experiencing services offline is becoming the mainstream of oral consumption. Among them, first-tier cities have become the main zone of Internet oral consumption. 88.5% of the users carry out oral consumption through the Internet with a frequency between 1 and 2 times.
In the broader consumer market, the oral economy is also showing strong penetration, in addition to the use of fixed frequency of toothpaste, mouthwash-based oral care fast-consumption track has also entered the acceleration period.
For example, brands such as Black, Colgate, Yunnan Baiyao and Listerine have also cut into the market from fast-moving products such as toothpaste and mouthwash, and oral care fast-moving products such as sonic electric toothbrushes, flossers, toothpastes, toothpowders, mouthwashes, toothpaste, mouth sprays and other fast-moving products for oral care have blossomed, and newer brands such as usmile, which has already initiated its IPO, and Samhain, which has just completed its RMB 400 million B round of financing, are beginning to occupy a The market share is not small.
The influx of capital and entrepreneurs has unleashed the imagination of the oral economy, but it has also exposed the shortcomings of the industry's transformation.
"Volume" and "price" have risen together, baked the waves of the dental economy, this is both medical and service business, is showing a distinctive character of the transition.
As Li Jin mentioned to Kuanchao New Consumer, he chose a moderately priced dental hospital after many comparisons, and the status of a public hospital gave him more peace of mind. Before there is a substantial gap between price and service, choosing a public hospital may be the subconscious inertia of most consumers.
But it can't be denied that "Internet + Dental Health" has become a trend, and the dental digital platform is accelerating its rise.
Among them, there is Ali, the United States, led by the flow of Internet giants, there are new oxygen, the United States chanting and other emerging medical platforms, but also the Bay Chi, dental home vertical oral health platform.
As the key to connecting the upstream and downstream of the industry chain, opportunities for industry change and development are brewing in the digitization of oral healthcare services.
For example, in the commercially mature areas of the dental economy such as dental implants, orthodontics, and prosthetics, the intervention of digital procedures such as 3D modeling and 3D printing can make oral healthcare safer, more efficient, and more precise, and give rise to new types of industries such as remote diagnosis and treatment, and Internet healthcare. In addition, the application of big data and databases can make the diagnostic results more accurate, thus bringing personalized oral health care services.
However, emerging markets often come with problems. Compared to the oral healthcare industry in traditional hospitals, Internet healthcare has many pain points.
"2020 Oral Healthcare White Paper" mentioned that the marketing costs of the medical beauty industry accounted for about 30% to 50% of the total cost, about 4,000 yuan to 6,000 yuan / person, as a related business of medical stomatology, the marketing costs are relatively low, but on average, they still account for more than 30% of the total cost.
For the platform, the key point to pry the hundreds of billions of market is not only technology and service, but also the high cost of customer acquisition; for consumers, whether there is enough strength behind the sky-high marketing set as a support, is still the most difficult choice before paying.
At the same time as the digitalization of dental service providers, emerging technologies have become an obstacle to lower prices, and commercial insurance is gradually becoming a breakthrough point.
For example, the cost of an oral orthodontic treatment reaches 50,000 yuan, with a consumption cycle of up to one year, and the 12-period interest-free payment will become the preferred choice of some consumers as soon as it is launched.
At the same time, dental insurance as a representative of the financial products began to penetrate the oral health services industry, the industry "dental + insurance" through the commercial closed-loop model has appeared, and more than half of the dental chain has been or plans to introduce commercial insurance.
A series of twists and turns, it is undeniable that the domestic oral economy of hundreds of billions of dollars in market size and high compound annual growth rate, is not enough to cover the industry's problems and chaos.
First of all, the small and medium-sized players survival space is narrow, chaos is frequent.
Taking invisible orthodontics, one of the industry drivers, as an example, the two head players occupy 80% of the market share, and their business model is to do only the upstream, without direct contact with consumers.
As a result, many startups need equipment supply and can only define themselves as a sales channel for the head players. The orthodontic devices used by startups are supplied by the manufacturer, and the practitioners responsible for their use are appointed by the manufacturer, making many seemingly independent organizations effectively the sales arm of the head manufacturers.
This model further lowers the barrier to entry, requiring only capital and a storefront to get in, with products, equipment, manpower, and even promotional marketing programs that can be streamlined.
The lowering of the threshold also squeezes the downstream profit margins, while the already high unit price of the customer, and suppresses the release of demand in the sinking market, the "black clinic" to take advantage of the opportunity to squeeze in.
Secondly, talent is scarce.
Orthodontics is the gold mine of the dental economy, but at the same time it is also one of the most specialized sub-disciplines in the field of dentistry. 2000, orthodontics officially became a postgraduate course, but from a medical student to a doctor between the time span is usually 5-8 years.
According to a Scorch Consulting report, in 2019, there will be approximately 210,000 general dentists and 5,300 orthodontists in China, which means an average of 14.8 general dentists and 0.4 orthodontists per 100,000 people.
Compared to the 97.6% oral prevalence rate in China, the scarcity of oral healthcare professionals has become a constraint to the development of the industry. The speed of training a good oral surgeon is far less than the growth of market demand, and this problem needs to be solved at the policy level.
A good tooth is known as "Hermes in the mouth", not only for the health of the painless, but also for the aesthetic, the face value of the confidence is often the most easily perceived confidence.
Income and consumer willingness to both enhance the demand for hundreds of billions of dollars of wind mouth, the wind mouth gathered capital and talent, the oral economy into the fast lane.
But under the pressure of the giants, is there still an opportunity here for entrepreneurs to change the industry? Or will the $10,000 a dental implant and tens of thousands of dollars a time for invisible orthodontic treatment be the eternal code of wealth?