In the recent Chinese invisible orthodontic market, the wind direction is somewhat unusual.
In the context of the "huge profits" of dental implants that have been collected and the medical insurance price limit has begun to be castrated jointly, another invisible orthodontics who is condemned by public opinion for "huge profits" should already have a sense of cold lips and teeth.
This is not alarmist. After the public opinion of "dental implants" in the past two years, the collection and medical insurance broke the expectations of the outside world and fell from the sky in a timely manner, becoming the "expensive teeth" nemesis and policy machete in the hearts of the people.
With a knife cut down, people in the dental implant industry chain began to wake up: the popularization of dental implants to benefit the people is the trend of political correctness. Low-end planting material suppliers who are not afraid to wear shoes barefoot have taken the initiative to join the inner roll. The Ningbo Medical Insurance Bureau's one-size-fits-all domestic implant price is 1,000 pieces, imported implants are priced at 1,500 yuan, all-inclusive dental implants are domestically produced for 3,000 yuan, and imports are 3,500 yuan, which is almost cabbage prices, and has attracted as many as 14 implant manufacturers to join.
Those high-cold foreign high-end implant manufacturers, under this general trend, can they refuse to collect and include medical insurance payments, and how long can they remain calm?
Also unstoppable is the recent public opinion on the big (belt) discussion (wind) theory (direction) of invisible orthodontics.
CCTV financial channel special program reported that in recent years, the demand for adult orthodontics has grown rapidly, and the demand for orthodontics has exploded at the same time as the supply side is also chaotic, the key role of professional orthodontic doctors has been ignored, and upstream suppliers are mixed.
China News Weekly, a subsidiary of the Central Media China News Service, featured "Crazy Teeth" as the cover of this week's magazine, and even published "200 Million People Want To Have Teeth Full? But there are only more than 6,000 orthodontic doctors in China, "Crazy Teeth: Orthodontics of Deformity", "Three-year-old children wear braces, who is selling anxiety" and other three 10,000-word articles, expounding and analyzing the current situation and problems of China's invisible orthodontic market.
As you guessed, the reports continued to give a bad review of the old invisible orthodontic high-price and profiteering problems.
How to solve the high price of invisible orthodontic services? Like oral implants, this has become a pain point for people's livelihood that the official media and the masses have begun to pay close attention to. In the case of little difference in service quality, improving the level of localization is naturally a feasible way.
According to the 2022 "Global and Chinese Invisible Correction Industry Blue Book" released by China Insight Information, China's invisible correction market has developed rapidly in the past few years, with an explosive growth rate of 1.7 billion yuan in 2015 to 13.1 billion yuan (about $2 billion) in 2021 in terms of terminal price, with a compound annual growth rate of 41%; the market growth will gradually stabilize in the future, but it will still reach 70.6 billion yuan (about 10.9 billion US dollars) in 2030 with a relatively high compound annual growth rate of 20.6%.
From the perspective of market competition pattern, in terms of the number of cases reached, the scale of China's invisible correction market in 2021 is about 450,000 cases, and the compound growth rate in 2015-20 years will reach 45.1%, compared with the industry growth rate of about 30% in 2020. According to the number of cases reached in the Chinese mainland invisible correction market in 2021, Angelalign's market share reached the first place, at 41.1%; Invisalign ranked second, with a market share of 35.9%. According to Yao Junfeng, founder of Zhengya Dental, the number of zhengya treatment cases will reach about 80,000 in 2021, and the market share in China is close to 20%.
This is also the three mainstream suppliers of China's invisible orthodontic market. In addition, local invisible orthodontic brands include Mei immediately under Dijia Medical, Shimeile under Dental Collar Technology, Mo Liqi under Zhengli Technology, etc., all of which have been favored by the capital market for many times and are ready to occupy a place in China's invisible orthodontic market.
Under the background of intensified competition in China's market and the political correctness of invisible orthodontic profiteering theory, incostable Beauty, a multinational brand leader in the industry, has significantly declined its Chinese market share in 2021.
Or the data of Insight Information: in 2020, Incosam's market share in China was 41%, forming a duopoly pattern with Angelalign, while in the past year, Angelalign's market share remained stable, and Invisalign's market share dropped to 35.9%.
Where is the less part? Obviously, it has been replaced by domestic brands.
After incosam officially entered China in 2011, it developed rapidly. From 2013 to 2017, incospirant parent company Aiqi Technology reached a compound annual revenue growth rate of 102% in China. However, after the domestic brands represented by Angelalign rose up, their market share has begun to decline.
This also can't understand the recent series of actions of Aiqi Technology, a company owned by Invisalign:
On February 28, Aiqi Technology cooperated with its 10-year-old friend Said Sunshine Dental to launch the "Wancheng Smile Plan" health project, anchoring the broadest county market in China, and vowing to sink high-end invisible orthodontic services to the end;
On April 28, Aiqi Technology announced the launch of two new Invisalign products (Invisalign Standard Set and Incosigma Adult Set) to expand its Invisalign product line and better serve the huge untapped market opportunities in China's invisible orthodontic market.
Xu Li, Vice President and Managing Director of Aiqi Technology China, said: "With the continuous improvement of Chinese residents' awareness of the benefits of oral health and orthodontics, as well as the rapid development and promotion of digital technology and 3D printing technology, invisible correction presents a huge market opportunity to be developed. I am delighted that we are able to expand our Invisalign product portfolio and add more treatment options to support Chinese physicians to better meet diverse patient needs and introduce more affordable Invisalign appliances for medium to complex adult patients." ”
Obviously, Aiqi Technology, which has declined in market share in China, has realized that its thriving high price has affected the preemption of the market. At this time, whether it is engaged in "orthodontics to the countryside" or to introduce new ideas, it is to continue to maintain a leading position in the Chinese market under the premise of maintaining a high-end brand image and high prices.
Although incospiration is still the absolute boss of the world, in the Chinese market, they have been severely challenged.
The Chinese market was initially the boss, and then the multinational giant who was besieged by domestic brands and fell lonely, we are most familiar with Samsung mobile phones. The South Korean smartphone maker shipped 2.75 units worldwide in 2021, with a market share of 20%, continuing to push Apple to the top spot in the global mobile phone market; but in the Chinese mobile phone market with sales of 314 million units in 2021, Samsung's market share is less than 1%! Under the siege of domestic mobile phone brands such as Huawei, Xiaomi, Vivo and Oppo, Samsung mobile phones, which once had the largest share in the Chinese market, have long disappeared from the vision of Chinese consumers.
This is a microcosm of the defeat of multinational giants in the Chinese market: after the rise of cheap Chinese brands, foreign brands that are accustomed to taking the high-end route have lost ground. Continuing to take the high-end route is inevitably not grounded, and not willing to reduce prices and product grades by self-degrading, so as to watch their own Jiangshan in the Chinese market be eaten away by Chinese local brands.
It is not an exaggeration to say that at the moment when China's local invisible orthodontic brands have exploded, the "outsiders" who have been showing people with high-end quality and high prices have now had such signs and hidden worries.