The document discusses the impact of the economic crisis in Russia on the dental services market. It notes that prices for dental materials and equipment have increased significantly, by 60-70% or even 100% in some cases, due to the fall of the ruble and decisions by foreign suppliers to raise prices. Experts believe some small clinics will be forced to close while larger chains will remain open but the main challenges for the sector have yet to begin. Suppliers are among the most pessimistic about the situation due to using trade credit to purchase goods. The crisis may disrupt supply of some product groups but clinics will likely not be severely impacted due to alternative product options. Companies that recognize mistakes and focus investments on effective strategies will survive the
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Expert opinions about the crisis of the Russian dental market
1. - IngaTOKMANTSEVA chief redactor«Odnako» magazine
«Dental service InRussiais the mostcommercializedsegmentof the medicine.Ingeneral,in health
care segment,the partof entire medical industryforprivate hospitalsaccountis lessthan5% of the
numberof enterprises.Indentistrysubstantiallyhigher.Forexample,accordingtoSCRgroup, inthe ten
largestcities,the proportionof private clinicsis more thanhalf part (includinginMoscow) of dental
facilities.Insome metropolitanareasinthe private hospitalsaccountforupto 90% of establishments.
AccordingSynopsisconsulting&researchgroup(SCRgroup),forexample,inMoscow,the share of
dental servicesaccountedfor44%of the turnoverpaidmedicine inRussiaasawhole isestimatedto
CORISAssistance,60%of the turnoveristhe paidmedical services.»
http://www.odnako.org/magazine/material/zubi-na-polku/
- I. BRODETSKY- CEO, DENTALEXPO
«The crisisinthe dental marketinRussia now is the same, as inothermarkets,but to a lesserextent.
Firstly,because indentistrytraditionallystrongentrepreneurial spiritexists,ithasalwaysbeenthe most
commercial sectorof medicine.Well,andsecondly,Dentistry isasectorof health care and it can save
it.It is hard to imagine apicture of how the crisisfrightenedcitizenshave moneyinthe trash.No,onthe
contrary! Theyare tryingto holdthe money- fora rainyday.What if suddenly,hunger,war,
destruction,etc.etc.?Forinformationaboutwhatthe governmentislayingthe nextyearbudgetsurplus
that isnot expectedsignificantgrowthof inflation - nobodytakes.All,of course,understandthatthe
crisis- a temporaryphenomenon,butwhoknows - thatthere will be further?Itisbettertowait a bit -
maybe eventhe priceswill fall...The same thoughtscome tomindof businessmen.Andof course in
dentistry!Thismeansthatyouneedtotake some anti-crisismeasures - understanditall.The firstthing
that comesto mind - reducingcosts.Afterfallingincomes,fallingdemand - acrisis!»
http://www.dental-revue.ru/index.php?page=03&subPage=05&artId=14
- IGOR GAVESHVELI Presidentof Dental officesnetwork«Unident»
Of course,the marketisshrinking.Manysmall clinicsare now beingforcedtoclose.If youpay attention
to the proposalsforthe sale of the business,youwill see thatthere are ahuge numberof clinicswith
twoor three chairs.To a lesserextentitisaffectedatclinicsmedium-sizedandlarge networks.Theyare
still keptall.Butitis possible thatthe maintestsforthe dental service sectorhasjustbegun.
http://www.unident.ru/publications/Igor-Gavasheli-Krizis-eto-vremya-professionalov-11285.phtml
- “Allegro”clinicSt.Petersburg
Most of all,the currencieshitbythe cost of implantationof GermanimplantsAnkylos - itisthisyearhas
increasedjust7 000 rubles (107 EURO) and amountedto32 000 (492 Euro).Customersnolongerhave
to pay 3000 rubles(45 Euro) for whiteningZoom2 - thisservice isnow the 15 000 rubles(230 Euro) .
Price for Israeli implantsis,asbefore,15000 rubles(230 Euro).But patientshave topayseparately
healingabutment - about700 rubles.
- KONSTANTIN SPIRIDONOVtradingcompany MedTorg Ltd.
In Russia,almostdonot produce anything. If youbuysuppliesforthe sumof 100 rubles,youpayjust60
centsof hundreds fordomesticproducts. All the rest- import. Eventhe plasticbags we made fromthe
Chinese powder".
2. - ANDEREIPIVIVAROV RosmeditsinaProject
"Some clinicswill be closed,butremainsonesunabletotake advantage andpickup a client. Many
patientsprefertogoto the state dentistryandtopay for a goodanesthesiaandsealsthatwill be
cheaperthan in the private medical center."
http://www.rosbalt.ru/piter/2015/01/13/1355102.html
-DAVIDMELIK-GUSEINOV Directorof the Centre for Social Economy,a memberof the PublicCouncil
underthe Ministryof Health
«However,leadersof the clinicsrecognize thatfurtherprice increasesinevitable.Butnotbefore the
autumn.While anyseriousshockswill not.Onthe demandof commercial medical serviceswill seriously
affectthe situationinthe publichealthsystem.If there theywill be quality,the majorityof patientswill
go there.Because the rate at private clinicsshould donow towhattheyare superiortostate institutions
above all - onthe diagnosis»
- DMITRIY SEROV,CEO of the group of clinics"Dental Practice"
“It ismore likely,the situationof 2009 will repeat,whendemandreturnedaboutsix monthsafterthe
sinking:"InJanuary2015, we are waitingforthe returnof pent-updemand.Now all potentialservice
usersare waitingforwhatwill happennext.They are monitoringthe marketexchange rates.Usually,
whenitcomesto the understandingthatinthe nearfuture thingswill notchange,butbeginstospend
savingsonthe most important - health. "
http://www.kursdela.biz/articles/?ID=37512
- W&H DentalwerkBurmoosGmbHpress-release
The openingof a newoffice inRussia- certainlyanimportantsignthatno matterhow unstable the
situationdidnotappearon the markettodayare ina state of crisis,W & Hs interestsinfurthersupport
of the Russiandentistryandconsolidatingitspositioninthismarket.
http://www.wh.com/ru_cis/whgroup/wh-russia/
Justmy opinion:
The rise in pricesiscausedby the fact that mostof the suppliesforclinicsacquiredequipmentand
materials abroad.
Accordingthe review,the pricesof dental materialsincreasedonaverage by60-70%, andin some cases,
100%. Moreover,expertsnote:thishasaffectednotonlythe fall of the ruble,andthe decisionof
foreigncompaniestoincrease the prices (thisisdone Itwastoreduce the costs causedby the
operationof officesinRussia).
Duringthe periodof economicgrowth,the headsof local tradingcompaniesand representative offices
of foreigncompaniessuppliersof equipmentandmaterials,"hasfed" huge office staff,notrelevantto
mainfunction, (marketers,economists,accountants,secretaries,etc.),sothata lot of spendingmoney
3. to investorsinthe pompousanduselessactionsinthe market,leavinglittle roomforthe development
of qualifiedSales Reps.Meanwhile,customersnow are lessattractedforclearaccountingof the
company,shine of floorinthe office orbrightadvertisingwiththe fireworksand banquets,but more
trustedwithdirectandsustainable contactswithreliable personsinthe company.Insuch
circumstances,the maingoal of any companyshouldbe,notmindlessspendingcuts,butkeeping
relationshipswithcustomers,partnersandstaff.
It is necessarytorecognize that suppliers,perhaps,the mostpessimisticplayers of the game.Certain
reasonintheirargumentsexists.It'snota bigsecretthat mostof themworkunderthe scheme or trade
credit.Whentheybuygoods,theyare usingborrowedmoneythattheytake fromthe banks or from
production,and transmits themtocustomer.It isobviousthatbanksare now experiencingserious
liquidityproblems,are extremelyreluctanttolend,andthe ratherharsh conditions.Inturn,the
producerswhose productioncostsare veryhigh,bydefinition,will seekall possible waystogetthe
moneyfromtheirdealers - infull,andpreferablyonaprepaymentbasis.Itisbasedonthis assumption
(verymuchlike thatit wasnot confirmed) thatprettysoonthe marketcoulddisruptthe supplyof
certainproductgroups.For the clinicsthiswill likelynotfatal,because intoday'scompetitive markets,
almosteveryone - mostexclusive- the producthas to at least3-4 analogue
Those companies,whoare fasterthanothersaware and recognize itsmistakesandfocusesits
investmentsonareally effective ways,likelysurvive the crisisandtake awaya piece of their
competitorscake inall segmentsandkindof business.