Home The Talent War in China's Dental Industry: How Meiview Star Program Breaks the Deadlock

The Talent War in China's Dental Industry: How Meiview Star Program Breaks the Deadlock

Oct 26, 2023 08:00 CST Updated 08:00
MEI WEI DENTAL GROUP

Oral Health Service Provider

Fortune Capital

Venture Capital Institution

As one of the earliest medical specialties to embrace marketization in China, the dental industry has embarked on a path of rapid development over the past two decades.

 

According to the "2023 Dental Medical Services Insight Report" released by VCBeat at the beginning of this year, the market size of China's dental medical services reached RMB 145 billion in 2021, maintaining an average annual growth rate of 20%. It is expected to reach RMB 300 billion by 2025, indicating broad market prospects.

 

In the face of such opportunities,The influx of numerous new entrants into the oral care industry has, on one hand, increased industry supply and provided more solutions for the market, while on the other hand, it has intensified competition for talent within the sector.

 

The underlying reason is that dentists are the core productive force in the dental industry and the primary providers of patient care, yet dentist resources are relatively scarce in China. According to data from the National Health Commission, China has 15.7 dentists per 100,000 people, a figure significantly lower than that of the United States, South Korea, Japan, and other countries.

 

To attract more and better dentists,Many dental institutions engage in "talent price wars," posing numerous challenges to the dental industry.: First, chain dental institutions face the pain point of high turnover rates among dentists and core management personnel. Second, labor costs are excessively high; prospectuses from multiple listed and pre-IPO companies indicate that labor costs account for approximately 40% of the total revenue of dental institutions, remaining at a high level.

 

How Can the Dental Industry Break Through Amidst Talent Challenges?

 

Amid Fierce Competition, What Are the Core Talent Pain Points in the Dental Industry?


Amid the rapid development of the dental industry, how to recruit and retain talent has become a top priority for every dental medical institution.

 

For instance, in terms of recruitment, a survey conducted last year by VCBeat found that 70% of dental institutions face hiring challenges. This is particularly true for small and medium-sized clinics where dentists practice independently; due to the lack of brand advantage, they struggle to attract high-quality dental talent.

 

When selecting a dental practice, dentists typically focus on two key aspects: first, the platform—where a larger platform enables them to deliver greater value; and second, compensation—where salary should be commensurate with their professional capabilities.“Chen Yuhua, General Manager of Wuhan Tsinghua Sunshine Stomatology under MEI WEI DENTAL GROUP, told VCBeat.”

 

Even with the aforementioned advantages, retaining talent after successful recruitment has become a challenge. Multiple industry insiders note that as substantial capital flooded into the dental sector several years ago, competition intensified, leading to growing restlessness among professionals. Amidst the “talent price war,” employee turnover has become increasingly frequent. This is because the scarcity of high-quality dentists lowers the opportunity cost for them to change jobs, making high salaries a straightforward yet highly effective strategy for poaching talent.

 

However,A mere “talent price war” will ultimately trap the industry in a vicious cycle.: The continuous escalation of labor costs among institutions has diluted profits and impacted sustainable operations, while frequent job-hopping by dentists has led to unstable career development, exerting certain negative effects on their long-term growth.

 

Faced with the pain points of recruitment and retention, what should the industry do? The answer lies in addressing dentists’ needs during their career development with targeted solutions.

 

For new physicians, having a favorable environment for professional growth is of paramount importance.“Zhai Jianbo, Dean of Shanghai Weile Dental Clinic, told VCBeat that a good environment encompasses a strong team and learning opportunities, which help dentists engage in continuous learning and improvement. As doctors mature in their careers, two major concerns become salary increases and ongoing professional development; effectively addressing these needs is key.”

 

In response, many industry players have developed strategies centered on the professional development path of dentists. VCBeat’s analysis of financial reports from multiple listed companies and strategic announcements from innovative startups reveals that equity incentives for dentists and the establishment of enhanced learning platforms have become common choices among enterprises, yielding tangible results.

 

However, it is important to note that isolated measures often struggle to systematically address talent-related pain points. Therefore,Ensuring that solutions are effectively implemented and tangibly perceptible to dentists is the key to addressing the core challenges of recruitment and retention.

 

One Year After Its Upgrade, the Meiwei Star Program Earns Widespread Recognition: Breaking New Ground and Establishing New Standards


“In the healthcare industry, it is impossible to operate independently of human involvement; therefore, we believe that the aggregation of talent is undoubtedly the primary driving force transcending traditional industry development,” said Zhu Liya, Founder and CEO of MEI WEI DENTAL GROUP, at an industry summit. During discussions between VCBeat and founders of multiple dental chain institutions, similar viewpoints were expressed.

 

As can be seen,It has become an industry consensus to aggregate dental talent and foster unity and progress alongside enterprises.So, how exactly is this done? The innovative practices of MEI WEI DENTAL GROUP offer a reference path.

 

In August 2022, the First Partner Representative Congress of MEI WEI DENTAL GROUP was successfully held, marking the comprehensive upgrade of its long-implemented Business Partner Program to the “MEI WEI Star Program.”After one year of operation, the "Mei Wei Star Program" has gained widespread recognition within the company.

 

What is the “Meiwei Star Program”? This inevitably brings us to Mei Wei Dental Group’s partnership program.

 

As a dental brand established in 2016, MEI WEI DENTAL GROUP has been promoting its partnership system since its inception. Through the “Business Partner” model—which includes clinic partners, physician partners, city management center partners, and headquarters partners—it enables dentists to step away from administrative tasks such as human resources management, financial and tax coordination, and marketing. This allows dentists to focus more effectively on high-value clinical care, truly realizing a “partner-centric” approach.

 

The launch of the Partner Program has enabled MEI WEI DENTAL GROUP to achieve substantial progress in both internal management and external expansion.On the one hand, the partner incentive system has enabled self-driven management among physicians, effectively addressing the challenges of physician oversight; on the other hand, by acquiring and merging regional reputation brands operated by physicians and converting core members into partners, it has further promoted the large-scale expansion of chain institutions.

 

However, during its gradual development, the model solely oriented toward business partners has also exposed certain issues, such as limited management span and hindered career advancement. To address these challenges, the Meiwei Star Plan was launched.

 

Specifically,Building on the foundation of business partners, the upgraded Meiwei Star Program has created a “veteran + newcomer” dual-drive model.This model offers two major advantages. First, it fosters a sense of ownership among partners by empowering them to participate more extensively in major decision-making, thereby instilling a sense of responsibility and enthusiasm for providing leadership and setting an example. Second, it outlines a clear career advancement roadmap for partners, establishing a competency-based rapid promotion mechanism to cultivate “star” partners. By inheriting and reinforcing the team’s excellent qualities, this approach builds a robust and reliable talent pipeline, thereby securing the capability reserves necessary for the Group’s sustainable development.

 

"From personal experience, the Star Plan has empowered employees to become true owners of the company.", and our mindset has also changed significantly from that of regular employees. We have become more dedicated and responsible in our work,” Xing Yuping, store manager of MEI WEI DENTAL GROUP’s Shanghai Weile Dental Clinic, told VCBeat.

 

In the view of Zhai Jianbo, a five-star partner of MEI WEI DENTAL GROUP,The Star Program also taught dentists to view things from a business operator’s perspective., and are better able to consider the company’s long-term development and offer strategic advice.

 

More importantly, the upgraded Star Plan has become a key component of creating a high-quality growth environment for employees. Zhai Jianbo stated, “In terms of talent development, we formulate annual training plans. In addition to leveraging our internal expert dentists, we extensively invite renowned external specialists to provide dentists with comprehensive professional growth opportunities.”

 

Xing Yuping, the store manager of the outpatient clinic, shared with VCBeat her most recent memorable internal training session. She noted that during periods of high work intensity, negative emotions often arise, which can lead to friction among colleagues. “The most important point raised by Ms. Zhu (Liya) was that we should identify each other’s strengths and learn how to express appreciation and offer praise. After putting this into practice, the results were evident: employees who received encouragement performed even better in their areas of strength.”

 

Additionally,The Star Plan also plays a significant role in shaping corporate culture.In response, General Manager Chen Yuhua stated that partners share consistent values, namely upholding the primacy of medical essence and putting patients first. “Partners at MEI WEI DENTAL GROUP are certainly committed to medical quality, as they all recognize that only by delivering meticulous medical services can physicians achieve positive social impact and build a strong reputation. Doctors and institutions with good reputations never lack patients, thereby enabling them to earn substantial income and create a virtuous cycle.”

 

It is evident that, empowered by the “Meiwei Star Program,” MEI WEI DENTAL GROUP’s internal talent system has received more comprehensive and systematic support, enabling every employee to achieve continuous growth in a favorable environment. As a result, each partner who has grown within this framework has emerged as a rising star, driving the sustained improvement of MEI WEI DENTAL GROUP’s talent ecosystem.

 

It is reported that MEI WEI DENTAL GROUP will continue to explore the partner model in the future, to steadily support its chain expansion and long-term development.

 

Talent Development Is Key: How Will the Future of the Dental Industry Evolve?


Small Mouth, Big Health. Since the awakening of oral health awareness among Chinese people, oral health issues have been receiving increasing attention.

 

Across China, the number of dental patients has been increasing year by year since 2010, reaching 707 million in 2022, accounting for approximately half of the total population.Behind the immense demand lies substantial market growth potential in the oral healthcare services sector, along with an urgent need for high-quality talent.

 

Therefore,Strengthening talent development is a key driver for industry advancement.

 

According to VCBeat, government agencies and higher education institutions are actively supporting the training of dentists. With the implementation of a series of policies and initiatives, the number of dentists in China is expected to continue rising. As the service delivery endpoint, dental care providers are also establishing standards, defining processes, and promoting training programs to empower dentists for rapid professional growth.

 

The dental industry is a service sector characterized by warmth and empathy. How can dentists convey this warmth? They must always consider issues from the patient’s perspective.“Only then can they attend to every detail and delve deeper into their work, thereby enhancing the patient experience. Therefore, throughout their professional development, it is essential to help physicians cultivate sound concepts and awareness,” stated Chen Yuhua, General Manager of Wuhan Tsinghua Sunshine Dental.

 

The rise of a cohort of outstanding dentists will bring new incremental growth to the oral healthcare industry and drive it toward greater standardization.“Zhai Jianbo, Dean of Shanghai Vle Dental Clinic, believes that ‘when people become less impetuous, the industry will return to its proper track of focusing on diagnosis and treatment and on patients.’”

 

Xing Yuping, store manager of MEI WEI DENTAL GROUP’s Shanghai branch, also mentioned, “Only by returning to the essence of healthcare can the industry’s value be recognized in the minds of users.“Excellent dentists often possess a strong spirit of learning, focusing on new technologies and concepts that can tangibly benefit patients. Institutions should support and cater to this enthusiasm for learning during the process. For instance, regarding comfort-oriented diagnosis and treatment, which has garnered significant attention within the industry, we are actively promoting its implementation and organizing collective learning initiatives to provide patients with the best possible clinical experience.”

 

We believe that with the emergence and growth of an increasing number of high-quality dentists, the national “Healthy China 2030” strategy will be accelerated, jointly building a “Healthy China” in the specialized field of oral health.