The China Private-Owned Dental Enterprises 50 is one of the KPMG China Healthcare 50 series. KPMG China has long been closely monitoring the development trends of China's healthcare industry. Through this public welfare project in the dental industry, KPMG aims to identify outstanding benchmark enterprises in the dental medical market and assist in promoting the healthy development of more excellent private-owned dental medical enterprises. Together, they explore new trends in the future development of China's dental medical market from a global perspective, and help the transformation and rise of China's dental medical industry.

To support the China Private-Owned Dental Enterprises 50 project, KPMG China has specially planned and launched the Dental 50 Opportunity Series, focusing on upstream and downstream enterprises in the dental medical industry. They discuss topics such as the current market environment, investment hotspots, and industrial transformation, and insight into the future development trends of the dental medical industry.

In this article, we share with you the dialogue interview of the Dental 50 Opportunity Series in a Q&A format. In this interview, KPMG China's Tax Partner of Healthcare & Life Sciences Industry, Grace Luo, had a conversation with Launca Medical CEO, Dr. Jian Lu.

 

Source - KPMG China: https://mp.weixin.qq.com/s/krks7f60ku_K_ERiRtjFfw

*The conversation has been condensed and edited for clarity.

 

 Q1  KPMG - Grace Luo: Since its establishment in 2013, Launca Medical has been committed to providing high-quality digital solutions for the global dental market, focusing on the development of intraoral 3D scanning systems and have launched several cart-type and portable intraoral scanners, including DL-100, DL-100P, DL-150P, DL-202, DL-202P, DL-206, and DL-206P. Among them, the DL-206 has a micron-level scan data difference compared with international leading brands, with certain advantages in identifying gingival margin line and displaying the denture surface texture, surpassing the digital impression accuracy requirements of dental restoration processes. What is the core technological advantage of Launca Medical?

 

Launca CEO - Dr. Lu: Since our establishment at the end of 2013, we have been committed to applying 3D imaging technology to the medical field, specifically in response to the urgent demand for domestic intraoral scanners. We chose to focus on the development of intraoral scanning technology and aimed to create cost-effective intraoral scanners.

 

From the DL-100, DL-200 to DL-300 series, Launca has defined a more pragmatic "long-termism" in its own way, striving to maximize the value for users to achieve sustainable user acquisition and expansion. With a deeper understanding of users in each product line, Launca has not only increased the willingness of existing users to upgrade but also leveraged the team's expertise in 3D imaging technology and iterated products based on a large amount of clinical data, which has enabled emerging user groups in the international market to accept Chinese brands. This has led to a snowball effect on Launca.

 

Launca’s first-generation intraoral scanners, including the DL-100, DL-100P, and DL-150P, were the result of two years of intensive research and development. After acquiring 26 intellectual property rights, Launca launched the first intraoral scanner in China in 2015, the DL-100, filling the gap of domestic intraoral scanners at that time. The most innovative and unique feature of the first-generation product represented by DL-100 is that it can achieve complex 3D imaging with fewer optical and electronic components while maintaining high precision scanning of 20 microns. This advantage has also been inherited by Launca's subsequent products.

 

Launca's second-generation intraoral scanner, including the DL-202, DL-202P, DL-206, and DL-206P, was designed to overcome the limitations of the first-generation product's powder spraying process. The powder-free DL-200 series products improved imaging technology, scanning speed, and data acquisition, and introduced innovative functions such as accurate modeling, large depth-of-field window, and detachable scanning tips, etc.

 

Launca's latest release is the third-generation wireless intraoral scanner, the latest series including the DL-300 Wireless, DL-300 Cart, and DL-300P, which was launched in March at the IDS 2023 in Cologne, Germany. With excellent scanning performance, enlarged 17mm×15mm FOV, ultra-lightweight & ergonomic design, and selectable tip sizes, the DL-300 series attracted significant attention and interest from dental professionals at the dental show.

 

 

 Q2  KPMG - Grace Luo: Since 2017, Launca Medical has focused on building digital solutions and dental services based on intraoral scanners, providing on-chair digital software and hardware solutions, technical training, and enabling immediate restorations in dental clinics. Launca has also established a subsidiary dedicated to digital denture design and manufacturing based on digital impressions, forming a comprehensive digital service system for dentistry. How does Launca Medical's digital solution innovation stand out?

 

Launca CEO - Dr. Lu: Digitization has been a hot topic in the dental industry, and even at the beginning of Launca, this concept was highly recognized by the Chinese Stomatological Association. Creating a more comfortable, accurate, and efficient diagnosis and treatment process is the value of digitization in the dental field.

 

In fact, when Launca initially started with the development of intraoral scanning technology, it did not include dental digitization in its business plan. However, as the first-generation products gradually gained popularity in the domestic market, Launca encountered a different set of challenges compared to the international market at that time. The challenge was how to convert the data obtained from intraoral scanners into products required for dental diagnosis and treatment, thus achieving a closed-loop treatment process.

 

In 2018, Launca introduced the first domestic chairside operating system in China. It consisted of an intraoral scanner and a small milling machine. The chairside operating system only solved the immediate restorative dentistry problem, while the challenges beyond clinical operations still burdened the dentists and couldn't be simply resolved by compressing chairside work time. The "turnkey" solution of intraoral scanning plus denture processing was the answer provided by Launca. It bridged the gap between data acquisition and model production in time and space, helped dental institutions accurately target their customer groups, and continuously optimized the experience by understanding user needs.

 

 Q3  KPMG - Grace Luo: In 2021, Launca Medical introduced the 1024 digital lab service model, which achieves real-time communication between clinicians and technicians within 10 minutes and completes rework analysis within 24 hours. It maximizes the advantages of digital impressions, helps doctors make real-time corrections, enables technicians and doctors to discuss design plans, and allows customers to view quality inspection images at any time. This model ensures efficient processing that meets the needs of doctors and patients while saving chairside time for dentists. How does Launca Medical's digital lab service model enhance the operational efficiency of dental clinics?

 

Launca CEO - Dr. Lu: The 1024 service model was proposed by Mr. Yang Yiqiang, a clinical doctor, Launca partner, and general manager of Launca Shenzhen. It is a bold and effective digital solution that Launca has gradually explored after establishing the denture subsidiary to implement vertical integration strategies and extend its business chain.

 

The 1024 service model means that within 10 minutes after intraoral scanning, doctors can communicate with remote technicians in real time. The technicians immediately review the models based on the "Launca Digital Studio Data Receiving Standards" to avoid missing or deviating data caused by various reasons in clinical practice. If defects are still found in the final dentures, Launca's denture studio can complete the rework data comparison analysis within 24 hours and discuss the reasons for rework and improvement measures with the doctor, continuously reducing the rework rate and saving the chairside time for doctors.

 

Compared to traditional impression methods, the creative thinking behind the 1024 service model lies in the fact that within 10 minutes after digital impressions, the patient is still in the dental clinic. If remote technicians discover flaws in the models during this time, they can promptly notify the doctor for immediate review and adjustments, thereby avoiding unnecessary follow-up appointments. Based on the results observed after nearly two years of operation, Launca's denture remakes rate is only 1.4%. This has played an immeasurable role in saving dentists' chairside time, optimizing patient experience, and improving treatment outcomes.

 

 Q4  KPMG - Grace Luo: Launca Medical is based in China for research & development, production, and market expansion. With its Chinese headquarters as a springboard, Launca has increased its export efforts. Currently, it has obtained registration certificates from the European Union, Brazil, Taiwan, and other countries and regions, with products sold to more than 50 countries and regions worldwide. Could you share Launca Medical's future market expansion plans?

 

Launca CEO - Dr. Lu: Although the international intraoral scanner market is relatively mature, and the use of intraoral scanners by dentists in Europe and America is quite high, the market is not saturated but in a rapidly maturing stage. It still holds opportunities and room for growth in the future.

 

As a Chinese manufacturer focused on technical research and development, we aim to perceive user needs as the starting point and explore the global market through "team localization." We respect local culture during the internationalization process, give our local partners full support and trust, promptly respond to customer needs and pain points, and provide solutions that are tailored to local realities. Launca firmly believes that having a high-quality local service team is an essential factor in building a good reputation and a strong sales network in the international market.

 

KPMG - Grace Luo: From a single product to an all-in-one digital solution and then to localized services, what is the biggest challenge that Launca faces?

 

Launca CEO - Dr. Lu: Today, there are various intraoral scanners available on the market, providing dentists with more choices. The biggest challenge for Launca is how to establish a presence in the "brand fortress" of Top brands by clarifying its positioning. Based on this, Launca positions itself as "Your Reliable Intraoral Scanners Partner" by focusing on cost-effectiveness and ease of use. We are committed to conveying this brand message through localized service teams and digital service solutions.