Dental Tribune Pakistan Edition

Editor - Online Haseeb Uddin 10 DENTAL TRIBUNE Pakistan Edition November 2014 ARACHI: The growth of international dental trade and profession in general is evident by its growth in revenues and standing in international stocks. Predictions are that global dental supplies market will be worth more than US $19 million by the year 2017. The dental equipment market has grown by 5% in 2013, a trend which will continue. The North American market alone grew by roughly 3% last year, with pricing as the key determinant of the equation. This year’s predictions for US also point towards an increase towards the last quarter of 2014. Similarly, the Asia-Pacific region is set to grow at an annual rate of 8.9% per annum. Many factors drive this trend. A significant and steady increase and spending on dental of treatments has led this major market shift, particularly in the orthodontics section. Aging population, increased awareness about oral health and technological developments all contribute towards this shift. On the dental surgeon’s front, this buying trend is based on the growth of the dental surgeon’s practice. It has been noticed that should the practice witness smooth sailing, the buying spree for dental supplies and equipment usually takes place after one or two quarters. The 2019 projection for the global dental market is estimated at $7,138.9 million. Current estimates stand at $5,416.3 million, with growth rate at 5.7% in the next five years. Market players at this point in time continue to be 3M, A-dec, BIOLASE technology, Carestream Health, Danaher Corporation, Dentsply International and Ivoclar Vivadent among others. The same trend however, cannot be seen in European countries. Much of this may be due to the fact that European countries have government systems supporting and reimbursing dental treatments. This means that the supply and demand are fairly constant. Current major markets in the European region are Germany, France and UK. The dental implant market remains the most lucrative area of investment. This area has an expected growth rate of 3.5% globally. Other reports have stated this growth rate to be as high as 10.6% per annum. Straunman remains the leader in dental implant sector at 18% share worldwide, followed by Nobel Biocare at 17%. So what are the implications? The rise in the quick and bulk ordering may be related to a somewhat new trend in the business: online dental purchasing. Around three years ago, dentists considered it skeptically. However, the opinions are changing. This reflects in the sales volumes as well where a steady growth in bulk ordering behavior is becoming common among dental surgeons. Online purchasing options are not only convenient for the dentists who can buy supplies from the comfort of their office, but also been extremely cost effective for suppliers looking to cut costs in their supply chain. Selecting the best online supplier may be the best long term investment for a dental surgeon. K DT Pakistan Report The growth of international dental trade and factors leading to it A new concept in dental purchasing Online retail purchasing may be the answer to cost cutting challenges for dentists ARACHI: There are numerous statistics and indicators to show that dental industry is growing. However the rise in the costs are forcing dentists to think up of creative solutions to save money while continuing to provide quality dental care. The 2013 Dental Trade Alliance meeting revealed some startling facts about dental services usage around the world, particularly in US and UK. The trade statistics revealed that despite overall growth in purchases of the dental industry, the actual consumption of dental services among younger adults is of decreasing. The state budgets are still putting restraints on the quality and number of dental services being provided, thereby leading to a shift towards financing outcomes as opposed to financing procedures. The direct result is that many of the dental practices are not practicing active dentistry, but moving towards integration, efficiency and cost cutting. Contradicting the trend is increased consumerism in healthcare and demand for dental aesthetic restorative procedures. The implications are many for both the dentists and the suppliers to dentists. Dental surgeons need to find more creative ways to cut costs while ensuring highest standards of care. This may mean creating bulk ordering systems or use online buying channels to save time and costs. The market is ripe and ready to be explored. Market research by Federation of the European Dental Industry or FIDE shows that European sales value excluding metal implants alone stands at €5,897 million, with the UK market standing at €427 million. Interestingly 19% of these suppliers are direct suppliers to the dentists. This is supported by the statistics showing that over 46% of current UK dentists are now doing retail purchasing online. This in order to survive this trend, industry gurus recommend for suppliers in becoming more focused and picky about choosing target prospects to reduce marketing costs. Suppliers are now offering dentists the option of reviewing multiple products offered by different vendors at the same platform, thus saving time. The same helps dentists make quicker purchasing decisions, again saving time and effort. Online shopping trend in other industries have shown huge promise and the same is now being directed in the dental industry, where it is more convenient, effective and cost cutting. The future retail trade in dentistry stands to benefit immensely from these online platforms and create a new dimension to dental retail delivery altogether. K DT Pakistan Report

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