Beijing, April 8
Orthodontics also needs to be staged.
After finishing the examination, Meng Zixin got the treatment plan and took a look at the doctor’s offer, which was 35000 yuan. “At that time, I really took a breath. I thought that the invisible braces were expensive, but I didn’t think they were so expensive.”
For Meng Zixin, who earns 7000 yuan a month, 35000 yuan is really a big expense. The doctor saw that she was embarrassed and said that she could pay by installments. After returning home, she found the official account of the US dental stage, looking for the detailed procedure for loan completion. Then she went to Baidu to search for the stages of Orthodontics, and found that there are many users who need loans for orthodontics as well as herself.
“The correction time was one year, and there were 43 braces in total. It cost nearly 40000 yuan from the early examination of the inverted mold to the final attachment.” This is the cost of orthodontics for Li Yutong, 23. The price of nearly 40000 yuan made Li Yutong hesitant.
“It’s said that invisible braces are standard for the middle class. I believe it when I see the price.” According to the reporter of lieyun.com, the quotation of brand yinshimei ranges from 30000 to 90000, and the quotation of era Angel ranges from 20000 to 30000. After thinking for a long time, Li Yutong decided to accept orthodontics and took out the savings from her three years’ work to start her orthodontic career.
The price of a pair of invisible braces is several times that of traditional steel braces.
The most basic reason why the price is high and it is popular is people’s endless pursuit of beauty. When the facial improvement after orthodontics is linked with the medical and aesthetic attributes, more and more beauty seekers begin to pursue invisible braces. Patients who wear braces are no longer buckteeth, di Baotian and other patients who have dental problems in urgent need of treatment. Small problems such as uneven arrangement and sparse teeth should also be corrected with braces. After all, the first step to becoming beautiful is to start with braces.
Data show that in 2019, China’s invisible orthodontic market has become the second largest market in the world. The number of invisible orthodontic cases in China increased from 47800 in 2015 to 303900 in 2019, with a compound annual growth rate of 58.8%. The market size increased rapidly from US $200 million in 2015 to US $1.4 billion in 2019, with a compound annual growth rate of 56%.
The price is high, the profit is big invisible braces, in the domestic continuous development, is ushering in the golden age. What’s the price?
Yinshimei’s annual report shows that the gross profit rate is above 70%.
According to a private hospital buyer like lieyun.com, the purchase price of time angel is less than 10000 yuan, and that of yinshimei is between 16000 yuan and 18000 yuan. This shows that the price difference between the b-end and the C-end is between 10000 and 20000.
The difference is the money consumers pay for doctors and venues.
In the cost of treatment, doctors account for the largest proportion. Li Xintong revealed that when he went to the hospital for examination, he often couldn’t get the doctor’s number. Every time he went to the hospital, he had to queue up for half an hour. The experience of Chinese medicine students in orthodontics field is directly related to the cost of treatment. It is understood that orthodontics became a postgraduate course after 2000. At the same time, an orthodontist usually needs to go through five to six years of training from undergraduate to master and doctor before he takes part in the work. In addition, the number of students in graduate education itself is small, and finally the resources of doctors are even less.
Li Xintong learned from the communication with the doctor that the attending orthodontic doctors open the clinic for about two or three days a week, and the rest of the time need to write papers and make treatment plans for the patients who have been received. In the time of sitting in, most of the scarce number sources are patients who return to the clinic, so it becomes more difficult for new patients to grab the number.
Li Xintong told lieyun.com that he visited the stomatological departments of four dental hospitals, from private hospitals to top three hospitals. The quotations given by each hospital were different, with a maximum difference of 10000 yuan. The reason is that each doctor does not have the same standard of treatment, and each doctor does not have the same treatment cycle.
On the other hand, it is the business model of the invisible braces company.
Yinshimei’s business model is to sell products and services to doctors instead of directly reaching C-end consumers. After the doctor checks the user, scans the mouth and inverts the mold, he designs the correction plan. Finally, the data will be sent back to yinshimei company, which will produce appliances and send them to the clinic for users to buy and use.
The domestic brand time angel also adopts a similar model. After the C-end consumers check the design scheme in the hospital, the doctor feeds back to time angel, and finally time angel delivers the product to the doctor.
Through the business models of the two companies, it can be seen that the whole brand of domestic invisible braces does not participate in the direct sales, and doctors play an important role in both operation and delivery.
This phenomenon can also be found in the giant companies in the industry.
As an emerging product, the investment cost of early research and development should account for a large proportion. However, according to the prospectus of time angel, the R & D expenses in the first three quarters of 2018, 2019 and 2020 were 50.163 million yuan, 80.905 million yuan and 58.935 million yuan, accounting for 10.3%, 12.5% and 9.8% respectively. Meanwhile, in 2018, 2019 and the first three quarters of 2020, the sales and marketing expenses of time angel were 81 million yuan, 123 million yuan and 91 million yuan respectively, accounting for 16.7%, 19.0% and 15.2% of the total revenue.
From this point of view, its R & D cost is far less than the cost of sales and marketing.
The marketing expenses include not only the advertising directly facing the C-end, but also the sales and training of doctors. When yinshimei entered the domestic market, it once said that the most difficult thing is to let doctors and consumers accept it. Therefore, the brand of invisible braces began to train doctors, first trained doctors, and awarded the title of “brand certified doctor”. Through the training of doctors, we can reach more C-end goals. With the rapid development of domestic market, start-ups rely on differentiation
Data show that the annual dental consumption in the United States is as high as $111 billion, accounting for about 4% of the total medical consumption, with a high proportion. Moreover, the penetration rate of Orthodontics in the United States is close to 10% for those aged 5-19, and more than 2% for those over 20. In contrast, the penetration rate in China is only 0.5%.
According to the number and growth rate of orthodontic cases in China from 2016 to 2020, the number of orthodontic cases increased from 1.8 million in 2016 to nearly 3 million in 2020.
Low penetration rate but rapid growth indicates that the industry is developing steadily.
With the development of orthodontic user education on facial changes, the orthodontic industry has shown great potential both in terms of population growth and future development. It is this potential that makes many entrepreneurs focus on invisible braces.
At present, the market share of invisible braces is 82.3% in North America and China. The two major brands take up 80% of the market and occupy a leading position. In the face of such industry giants, the only way for start-ups to break through is to find differentiation.
Among them, xilab, which was born in 2015, gives the differentiated answer that it directly faces the C-end.
Xixilab grasps the pain point of frequent follow-up visit of braces and makes the process online. In the business process, after the customers make an online appointment, they conduct the first offline correction evaluation and X-ray examination in the cooperative clinic. After taking the mold or oral scanning, we can get the customer’s specific oral fine structure, and then through digital modeling and design. The whole correction process, in addition to a comprehensive oral examination and scanning oral information need to go to the clinic, the rest can be carried out online.
For orthodontists, xilab brand direct marketing mode is convenient and low-cost. During the correction period, a professional team has regular online follow-up, real-time question answering and problem solving, so as to avoid the extra expenses and time cost caused by frequent registration and queuing at the clinic. Xixilab, which directly faces the C-end users, helps users save about 65% of the cost and time.
On the other hand, for dentists, xixilab’s customer source can help the dental hospital drainage and reduce the difficulty of new users’ number grabbing caused by old users’ return visit. At the same time, the clinic can also tap other needs of users and bundle users for a long time.
A user who uses xixilab braces told lieyun that the full cost of the braces is only 18 thousand yuan, which is lower than the quotation given by yinshimei and time angel.
The differentiated answer given by micro cloud, a dental service company, is to use artificial intelligence.
In 2020, Weiyun will officially launch the invisible appliance brand Xiangbei, and take the way of direct cooperation between AI intelligent brain and clinic to enter the track. Relying on its own hundreds of invention patents in Al, micro cloud artificial intelligence creates a fully digital, fully intelligent and fully information-based dental medical service through an intelligent factory composed of digital dental industry cloud SaaS, Maas and robot terminal matrix.
With the support of core technology, the intelligent cloud factory shortens the implementation cycle of replacement repair and dental beauty to 1-2 days, reduces the single product production time by 90%, and saves 80% of manpower. According to Dr. Liu Peng, the founder of Weiyun, it usually takes 300-500 people for a factory to complete an order. Weiyun only needs dozens of people to reduce manual participation, and the yield rate can reach more than 97%. In terms of process, based on the data of millions of users, micro cloud simulates the clinical orthodontic process and the way and process of tooth displacement through AI, calculates and generates the full cycle of orthodontic treatment model, then micro cloud doctors fine tune the digital orthodontic treatment scheme for patients through c2m system, and finally produces and delivers the micro precision through intelligent factory.
Also grasping the digital differences is bosmart, which has just completed the pre-B round of financing.
In 2016, Bosimei was founded in Suzhou, and its founder Jie Liangdong realized that the domestic orthodontic industry was facing various obstacles after many years of practice. He said that looking back on years of experience in running dental chain clinics, the biggest pain is the shortage of orthodontists in China. It is often difficult for the managers of major outpatient departments to effectively control the quality and level of orthodontic technology, which makes many customers unable to obtain the perfect orthodontic experience.
Bosme focused on the research and development of digital software algorithm, launched automatic tooth arrangement software, directly connected to the interface scanner and CT port, which reduced the modeling distortion and improved the accuracy of the appliance. At the same time, it is assisted by 3D laser imaging technology, and the modeling accuracy is 0.1 mm.
It can be seen that the purpose of digital or invisible operation of the Internet can still be achieved. From the perspective of the whole industry, the listing or IPO preparation of head companies proves that the industry is feasible, the penetration rate is low, and the growth rate is fast, which proves that the future is promising. Maybe it’s the best time to get in at that time. The “wild way” of the industry
This 100 billion blue ocean market not only attracts start-ups to enter the racetrack for deep cultivation, looking for differentiation. Also attracted some manufacturers, want to rise suddenly and get a share.
Searching for invisible braces on the e-commerce platform, we can see that the average price is only tens of yuan, and the most expensive is only 100 yuan. They have really grasped the pain point of the high price of invisible braces, and the monthly sales of several stores have exceeded 10000. Buyers show also appeared in a lot of ineffective, used up teeth sour evaluation.
The reporter compared the products of several stores, and the word 6D appeared in the publicity, as well as the use of medical silicone materials. But it is understood that silicone material is not suitable for invisible braces. It is worth mentioning that the same case is used in the publicity page of the products launched by two different manufacturers.
In addition, in the preview of the product, several stores have adopted the words “recommended by Weiya and recommended by Jiaqi”, with pictures of Weiya and Li Jiaqi’s live studio. The PS trace in the preview image is obvious, and there is no information recommended by the famous anchor after clicking the details page.
The most important thing is that whether it is invisible or traditional steel teeth, the most basic is customized. After oral cavity scanning, according to each person’s different dental problems, different treatment schemes are provided. But the invisible braces sold on the Internet do not have any customized properties, only a unified model. To this end, lieyun reporter consulted a dental clinic, the doctor said, wearing non customized braces, violent orthodontics on teeth and irreversible impact.
The facial changes brought about by orthodontics are extra points for facial values, which makes orthodontics have more medical beauty attributes. In recent years, the popularity of medical beauty is self-evident, both capital and consumers are in pursuit of medical beauty. In addition to the establishment of Orthodontics specialty in the top three hospitals and private hospitals, the beauty hospital also divides orthodontics into separate projects, and there are many orthodontic projects on the online medical beauty platform.
Li Xintong, like lieyun.com, said that most of the orthodontics in plastic surgery hospitals and medical beauty platforms put beauty first. In Li Xintong’s opinion, the majority of orthodontic users pursue health first, beauty first, and beauty is the goal, but it is by no means the ultimate goal.
“I don’t believe that the orthodontists in regular hospitals have enough professional resources.” Li Xintong disclosed that the treatment plan given by the dentists in the cosmetic surgery hospital is far from the treatment plan they got in the top three hospitals. At the same time, the doctors in the cosmetic surgery hospital also told Li Xintong after face-to-face diagnosis that after finishing the tooth, they can make a nose with 20% fold, so that the new teeth and the new nose match more harmoniously.
1. If you want to reprint the original articles, please contact the official wechat for authorization.
2. When reprinting, the source should be clearly indicated in the head of the article, and the official wechat, author and original hyperlink should be reserved. Such as from the words of lieyunwang.
3. The financing amount involved in the report of lieyun is provided by the start-up company for reference only, and lieyun does not endorse the authenticity.