The Russian market overview Dental implants The Russian market overview

Dental implants market volume According to market research conducted by Discovery Research Group, the total market volume of dental implants was 109,4 mln USD in 2015 61% of the total market are implants itself, $66,3 mln USD The rest amount is 43,1 mln USD - artificial teeth and other dental orthopedic products Source: Discovery Research Group http://www.drgroup.ru/531-analiz-rinka-stomatologicheskih-implantov-v-rossii.html; FTS Russia

Market volume dynamics The amount of dental implants import has been decreasing since 2013, the market in 2015 is half as much as in 2013 The trend is negative and it’s not expected to become an opposite in the nearest future Source: United Nations Trade Statistics https://comtrade.un.org/data/, code HS 902139

Market volume dynamics Total Market USD trade value Total Market Net weight, kg In spite of the fact that the market decreased by 2 times in USD, the number of units or net weight of imported products has slightly increased. Significant drop of USA import was compensated by Germany, UK, Ireland, Costa Rica and Nederland growth Source: United Nations Trade Statistics https://comtrade.un.org/data/, code HS 902139

Market volume dynamic 2016 FTS provides customs data for the code 9021 - orthopedic appliances including artificial dental products. But the Russian customs data does not match the UN data dramatically – there is a difference of at least 3 times. According to FTS, the main importers in the category are USA, Germany, Ireland, Switzerland and Israel Source: FTS Russia, http://www.customs.ru/opendata/, code 9021

Import structure by country types The vast majority of dental implants Russia imports from high income countries, main partners in 2015 – Germany, USA, UK, Ireland, France, Netherlands. Nevertheless the share of them is slightly decreasing in favor of developing economies or upper-middle income countries as well. Source: United Nations Trade Statistics https://comtrade.un.org/data/, code HS 902139 UNCTAD http://unctadstat.unctad.org/EN/Index.html , code 541 (Medicinal and pharmaceutical products)

Barriers and standardization Duties, taxes, excises This category is not a subject to import duty or excise Import VAT rate is 18% Documents required for import Registration certificate of Ministry of Health Federal Service on Surveillance in Healthcare and Social Development, contacts: +7 (495) 698-45-38, +7 (499) 578-02-30 http://www.roszdravnadzor.ru/ Declaration of conformity with technical regulations of the Customs Union Rosstandart http://www.gost.ru/wps/portal/

Market structure. Target audience Primary professional audience – dental clinics making a purchase decision (buyers) and dentists who become influencers for the customer Customers People who make a decision to install implants Men and women aged 25-60, with upper-middle income and above

Market structure. Competitors USA Switzerland Sweden Russia Korea, rep Israel Germany This market is rather saturated, mostly imported products The lowest price offers Alfa Bio – 313$, the most expensive is Biohorizons The most popular implants on the Russian market are the cheapest – Alfa Bio, about 50% of sales (experts estimation) Source: stomatologija.su

Market structure. Sales channels The largest network of dental clinics in Russia are Masterdent, Unident, Medi. Networks operate mainly in Moscow, St-Petersburg and big cities (1 mln+ population) Masterdent http://www.masterdent.ru, +7(495)6741001 30 clinics in Moscow and other regions as well Market share is 8-10% according to experts Target audience is wide but basically upper-middle class Unident http://www.unident.ru, +7(495) 6750000 15 clinics in Moscow Targets families and individuals with upper middle and high income Medi http://medi.msk.ru, +7(495) 3636360 22 clinics in Moscow and St-Petersburg Targets people with upper middle and high income

Recommended specialized conferences and exhibitions Health Care (Zdravookhranenie) 2016 - conference and exhibition One of the most significant event for health care, medical engineering and pharmaceuticals 5-9 December 2016, Moscow, Expocenter Includes large dentistry section (materials, equipment, instruments) http://www.zdravo-expo.ru/ Dental Expo 2017 Moscow International Dental forum and international exhibition 25-28 September 2017 http://www.dental-expo.com/dental-expo/eng/ Stomatology St-Petersburg International exhibition of equipment, instruments, materials and services for dentistry 16-18 May 2017 http://www.stomatology-expo.ru

Market entry suggestions Appropriate positioning is the key factor for successful entry to the market – price matters but the most important factors are quality, service, loyalty & discount system and information Agreements with local dealers of dental equipment Directions for communication Buyers and influencers The best way to cover buyers and dentists are professional conferences, exhibitions and forums, commercials and PR in specialized press and internet media Direct sales and special offers for clinics Consumers PR and commercials, owned digital media

Data This research is based on free distributed data, sources: United Nations Commercial Trade Database https://comtrade.un.org/data/ Unktad Statistics https://comtrade.un.org/dat FTS Russia data Open source market researches