The dental industry refers to medical industrial chain on the basis of oral medical consumption, consisting mainly of dental appliances (equipments and consumables), dental medical services, etc. with the synergy of deepening implementation of new medical reform, growing per capita disposable income and raising public awareness over health, China dental industry has witnessed robust development in recent years.
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Dental Appliance: in 2012, the revenue of China dental equipment industry increased by 6.7% year-on-year to RMB2.7625 billion; in Jan.-Oct., 2013, it reported the revenue of RMB4.2094 billion, up 92.9% year-on-year. Domestic industrial players, including Xianyang Northwest Medical Instrument (Group), Runyes, Shinva Medical Instrument, Shanghai Fosun Pharmaceutical (Group), Hefei Meiya Optoelectronic Technology, and Fujian Meisheng Medical Science & Technology, are increasingly sharpening their competitiveness. Xiya Optoelectronic Technology, for example, unveiled its CBCT in 2012, dismantling monopoly of foreign brands such as Carestream from US, Kavo and Sirona from Germany, New Tom from Italy, Planmeca from Finland, Vatech from South Korea, and Morita from Japan. In 2012 and H12013, the sales of the company from CBCT hit RMB1.15 million and RMB5.53 million, respectively, with a tendency to replace imported brands.
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Dental Medical Service: in 2006-2011, the total revenue of China’s stomatological hospitals soared from RMB2.37 billion to RMB6.5 billion, with the CAGR of 22.4%. By gross margin, stomatological hospitals have been ranked top three among specialized hospitals of all kind for many consecutive years, with the number in 2011 reaching 11.8%. In consideration of the fact that the revenue generated by stomatological hospitals is excluded from that generated by the department of stomatology of general hospitals which number around 18,000, and that private clinics such as Arrail Dental and iByer Dental Group are more active in marketing, the overall oral medical industry performs better than the above data in terms of industrial scale, growth rate and gross margin.
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Thanks to a series of proactive policies and robust demand, China has fostered nationwide oral medical service institutions represented by TC Medical, Arrail Dental, iByer Dental Group, and Jia Mei Dental which can be most founded in economically developed regions such as Beijing, Shanghai, Jiangsu, Zhejiang and Guangdong, as well as flagship chain brands represented by Yafei Dental, Ai Kang Jian Dental, Changsha Haoyayi, and Dalian MEIER DENTAL.
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