Russian Dental devices, equipment and supplies market

Dentistry as a sector of the Russian healthcare industry has grown to become possibly the most advanced and potent aspect of the Russian medical market. The Russian dental industry is widely privatized.There is minimal government-funded dental care treatment. State dental clinics , which deliver a limited amount of free dental services, obtain payment for them either from Mandatory Medical Insurance Funds or Voluntary Medical Insurance Programs. Private dental clinics or fee-for-service departments in state dental clinics, which supply the largest majority of dentistry services in the larger cities and urban areas, charge patients directly. With disposable incomes growing in Russia intensively, dentistry is starting to become an important emphasis not only for high-income, but additionally for middle-income and low middle-income groups. The Russian dental market possesses huge potential. The numbers of clinics, practicing dentists, technicians and patient visits are rather high. According to our estimations there exist 11,000 state and 6,000 private dental clinics in the Russia. In addition there are more than 89,000 dentists and more than 22,000 technicians who operate in state dental clinics and more than 21 ,000 dentists and more than 13,000 technicians who are employed in private dental clinics. The amount of patient visits is more than 165 million a year. There are 4 .5 dentists for every 10,000 people in Russia.

The dental market is amongst the most highly regulated and structured marketplaces in Russia. Professional dental industry associations play a significant role in controlling and developing the Denist technology market across Russia. The Russian Dental Association has 69 regional divisions. Dental Industry Association ( RDI – ROSI ) was established in the year 2000 with 50 members. 

Within the last 10 years Moscow’s dentistry market experienced brisk growth. Currently, over 720 private clinics provide an array of dental treatment. However, in accordance with industry experts, the Russian dentist market is not yet saturated for the segment of clinics, which serves the middle and low middle income class dentistry market. Specialized elite clinics encounter aggressive levels of competition and suffer from a scarcity of patients. The quantity of state clinics in the city is not in excess of 31. The price difference in state and private clinics could possibly be nearly 4-20 times. For example, a metal and ceramic prosthesis in a private clinic costs from $200 to $1000 whilst the identical prosthesis in a government/state clinic cost from $50 to $150, in the majority of state clinic's patients spend merely 1-5 US$ for the treatment of one caries tooth, in private clinics the cost for treatment of one caries tooth is $50-100. Private clinics purchase modern equipment, including dental lasers, modern X-Ray equipment and tooth bleaching systems. Sophisticated private clinics provide implantation and oral hygiene treatments and are usually comparable to Western standards. Implants and orthopedics treatments are the most required services in dentistry. Month-to-month returns of 1 dental office working with implants is $100 thousand. There are tens of Modern western dental specialist clinics working in Moscow.

The leading dental University is Moscow State Medical and Dental University, the Sechenov Medical Academy is training high quantity professionals as well.

CNIIS Rosmedtehnology is amongst the major scientific centers engaged in the dentistry market. Modern western elements and materials, equipment, technology, and techniques are now broadly utilized in private clinics, narrowing the gap between the services available in Russia and other European countries. The fast development and growth of this sector throughout the early and mid-1990s, only broken by the August 1998 ruble crisis, has recovered and the turnover of the Russian dental market for today is  worth $1 000 000 000 and will increase to over $2 000 000 000 during next 10-15 years. The growth has pushed the market to produce and generate a substantial demand for imported dental supplies and equipment. Private clinics, the most important purchases of imported dental equipment and supplies, continue to provide a of all dental services and solutions. Locally manufactured products are usually of reduced quality when compared with imported products and meet approximately 21 % of market demand. Presently, significant opportunities can be found for U .S, European and Asian manufacturers of dental equipment and supplies wanting to proceed in the Russian market or expand their business in Russia.

Many big US and transnational European companies have their own local offices in Russia:
Dentsply, 3M ESPE, Sirona, KaVo, Nobel Biocare, Colgate, Eastman Kodak, Procter and Gamble, Discus Dental, SS White, Philips/Sonicare, Oral B, Wrigley, Plandent Oy, Siemens etc.
 
Current Russian legislation is not a considerable barrier to importers of dental equipment. Customs duties for a substantial amount of dental products are currently 5 %. Exceptions concern IV sets, and disposable syringes for which customs duties are 15 %. The new Tax Code, which came into force on January 1, 2002, discontinued the VAT exemption for a lot of medical solutions, including pharmaceuticals and medical supplies for which 18 % VAT is applied. However, the new regulation does not have an effect on the majority of medical equipment, including dental equipment, which is VAT-exempt.

Imported equipment accounts for close to 80 % of the Russian dental market U.S producers are among the lead sellers in Russia, together with those from Germany, Italy, France, Switzerland, Japan, Spain, and Finland. Dental products from Brazil, Argentina, Korea, China, Slovenia and Turkey contribute towards competition in the lower-price range. The demand for dental products in the mid-price range is steady, with both state-run and private clinics are constantly upgrading and modernizing their facilities together with their services. Thus the marketplace is receptive to dental equipment and materials which use the most sophisticated technologies that feature an excellent quality/price ratio.

In spite of intense competition from Western manufacturers, particularly from Germany and Italy, U .S companies products have the benefit of an excellent reputation in Russia mainly because they offer high quality and consequently reliability. European dental technology is very competitive in various categories of equipment; geographic proximity acts as a significant player in their companies’ ability to favorably position products on the market. A positive factor for U .S European and Asian manufacturers is the tendency of the dental industry is vastly privatized. This indicates that it relies primarily on private financing and out-of-pocket payments, and will not experience the considerable financing restrictions that are a factor with other medical acquisitions in Russia.

At present, the Russian Dental market is incredibly open to imported goods in the following areas:

• Dental chairs, cabinetry, and delivery systems; equipment for dental laboratories; endodontal devices and supplies; polymerizing lamps; and micrometers. There are no Russian manufacturers of good quality equivalents for these products. Private clinics consider that imported furniture, particularly dental chairs, is essential for forming their image and attracting clients. Clinics are open to making substantial investments in this kind of equipment. Furthermore, clinics that  firstly bought simple, imported workhorses are upgrading to models in the $15,000-30,000 range.
• X-ray equipment and supplies, internal x-rays, radiographs, modern ultrasound equipment, and dental lasers.
• Anesthetics ( local and topical ) as well as syringes. Anesthetics are commonly used in Russian dentistry and demand greatly surpasses domestic production capabilities. Additionally, Russian brands are generally regarded as inferior, therefore clinics favor imported products.
• Cosmetic dentistry, bleaching, and restoration is fairly new to the Russian market, nevertheless are gaining acceptance.

There exists an increasing demand from customers for hygiene and scaling instruments, instruments and materials for modern aesthetic dentistry and tooth hygiene, teeth whitening and bleaching products. As the dentist industry modernizes, the demand of routine hygiene services is developing, establishing demand for the materials and equipment essential for all areas of hygiene. Likewise, pediatric sealants, previously unknown in the Russian market , are entering into broader use:
• The requirement for endodontic materials along with the requirement for removable and permanent prostheses, such as dentures and bridges, are presently strong and anticipated to grow further.
• The present market for implants is poor on account of the procedure’s hefty cost, along with insufficient knowledge with the procedure among customers and doctors. Just like prostheses, though , the generally poor degree of dental health pushes the promised growing potential in the area of implants. The implants and in general implants market is among the most the perspective markets in Russia as it is worldwide.
• Orthodontics: there are at present only a few organizations in Russia importing or distributing orthodontic solutions, but both pediatric and adult orthodontics offer promising opportunities .
• Used equipment: There is certainly a significant demand for used dental equipment, especially ultrasound equipment, dental complexes, panoramic tomography devices, and other equipment and instruments for the dental clinic, laboratory and office. Mid and high-end clinics choose to buy brand new equipment since it is a critical element of the clinic's image. Consequently, the greatest possibility end-users for reconditioned equipment are state clinics.

How to market and develop the Russian Denistry market

The A popular but more random approach to entering the Russian dentist market to reach both distributors and dentists would be to participate in one of the most significant dental trade shows in Russia – Dental-Expo or alternatively Dental Salon which is held in Moscow in the autumn and spring respectively. Organized by the Company “Dental-Expo” and supported by The Russian Dental Association and RDI – ROSI, these events are one of the most popular platforms for the marketing of products and finding partners in Russia.

Another strategy for reaching dentists is holding educational seminars presenting the manufacturer's products or service mainly because a lot of companies have already established clienteles. In fields with complicated procedures, for instance Implantology, orthodontics, and use of articulators, dentists possess a sizeable fascination with new materials and techniques, however do not have the training vital to incorporate these products into their practices. Venues for introductory seminars are leading trade shows. The organization of seminars separate from the key exhibitions is expensive in addition to being difficult to convoke professionals to attend.

A second even more highly targeted route to market is through a company such as BricPartner which specializes in utilizing their market knowledge and industry influence to help facilitate business through their business partner search project. Bric Partner has assisted companies to develop their business in Russia for 23 years not simply just marketing companies but working closely with each client to ensure a tailor-made approach to finding business partners in Russia and the wider Bric region. Whether you are a manufacturer of technology for the dentist industry or a supplier of services they have the experience and knowledge to help companies of all sizes find the right trade partners in the Bric’s countries and Russia. BricPartner delivers your information to key importers, potential agents, key government officials, municipal, distributors and leading industry professionals across the Bric region.

Another area which has big potential is joint productions based on technologies of assembling of spare parts in on the factories based in Russia. It means a decrease in of the customs taxes on import. It's estimated that market capacity of dental units assembled using these technologies is 5000 dental units per year.

Summary of the Russian Dental Equipment and Supplies Market

Dentistry as a sector of the Russian healthcare industry has become just about the most advanced and potential areas of Russian medicine for international companies to develop. Western materials, equipment and techniques have become extensively utilized in private clinics, trimming the discrepancy between the services available in Russia and other European countries. Presently the value of all dental equipment and supplies sold in Russia is estimated at $550 million. The growth has pushed the market to deliver a considerable demand for imported dental supplies and equipment. Private clinics  the primary customers of imported dental equipment and supplies, continue to offer a significant amount of all dental services. Locally produced dentist products are typically of reduced quality rather than imported equipment and meet approximately 21 % of demand from customers. Presently, considerable opportunities can be found for manufacturers of dental equipment and suppliers seeking to enter the Russian market or expand their reach there.

International products account for approximately 80% of the Russian dental market manufacturers from Germany, France, USA, Switzerland, Japan, Spain, and Finland. Dental products from Brazil  Argentina, Korea, Taiwan and Turkey provide competition in the lower-price range. The need for dental products in the mid-price range is steady as both state-run and private clinics are constantly improving their facilities and services. Hence, the market is receptive to dental equipment and materials that use the most sophisticated technologies and have a high quality/price ratio.

A key factor for Dental Equipment manufacturers and Supplies is the nature of the industry is highly privatized.Which means that it depends chiefly on private financing and out-of-pocket payments , and also should not experience the significant financing limitations that can obstruct other medical purchases in Russia. There is a demand for a wide variety for dentistry technology with a large demand for Dental chairs, cabinetry, and delivery systems; equipment for dental laboratories; endodontal devices and supplies; polymerizing lamps; and micrometers. There are no Russian producers of high-quality equivalents for these products therefore offering excellent opportunities for international manufactures of dentistry technology to develop business in Russia.