Empowering the Midstream of China's Dental Industry: Songbai Dental's Breakthrough and Transformation

“Whether in mechanics, electromagnetism, or quantum mechanics, physicists are striving to describe everything with a single formula. Can the dental industry also streamline its entire workflow to make it more concise and efficient through certain approaches? My team and I are working to find the answer to this question.” This statement was made by Hu Jiezhang, Partner at Songbo Investment and CEO of Songbo Dental, while sharing insights on investing in China’s dental industry at the 2021 International Dental Industry Summit.

As is well known,The oral care sector has consistently been a high-growth niche market.According to the "2020 White Paper on Dental Healthcare" released by VCBeat, the market size of dental healthcare services has been growing at an average annual rate of approximately 24%, maintaining a trend of continuous and stable growth. On the other hand,Due to the highly fragmented nature of the dental market, with numerous niche segments and a lack of standardized models across the upstream, midstream, and downstream sectors, the dental sector has become one of the most challenging areas within the entire healthcare industry.

Thus, leveraging its strengths in industrial development, Songbo Investment has invested in leading enterprises across many niche segments of the upstream dental industry, while also acquiring or investing in multiple dental hospitals and dental chain clinics downstream. In 2019,Songbai Investment officially established Songbai Dental, gradually delving into the midstream of the dental industry—characterized by slow development and delayed returns—thereby achieving in-depth and sustained coverage across the entire dental value chain.

“From the perspective of the industry’s development trajectory, the dental sector, particularly the midstream segment, faces the challenge of being fragmented and composed of small-scale players, making consolidation highly resource- and time-intensive. However, observing the broader industry trends, the dental industry still presents significant opportunities.” In Hu Jiezhang’s view, although the path for the dental industry may be tortuous, its future remains promising.

The heat of the capital market can reflect this situation. According to incomplete statistics based on public information, there have been over 360 financing and investment events in the oral care industry in the past decade, indicating that the oral care industry is continuously heating up. However, at the same time,Training of dental healthcare professionals and the development of industry informatization remain lagging.And this is precisely the industry challenge that Songbai Dental aims to tackle.

“Someone has to do these difficult yet right things; we are willing to invest the ‘slow, painstaking effort’ required for industry building,” Hu Jiezhang told VCBeat. He noted that such foundational infrastructure is one of the key factors constraining the rapid development of China’s dental industry, often demanding long-term commitment and investment.

How exactly is Songbai Dental empowering the midstream industry chain? What experience has it accumulated? And how will it strategize for the future? In response to these questions, VCBeat seeks insights through an exclusive interview with Hu Jiezhang and a review of Songbai Dental’s recent initiatives.

In the dental sector, midstream distributors occupy a pivotal position. The reason is straightforward: the upstream dental product landscape is highly diverse, with over 100,000 SKUs alone, while the downstream market comprises both private clinics and public institutions, characterized by a large number of scattered dental facilities. ThisThe fragmented nature of both ends of the industry makes midstream distribution a critical link for the smooth operation of the entire sector.

“It can be said that midstream distributors play a pivotal role in linking upstream suppliers with downstream clients. As the number of healthcare institutions and dentists continues to grow, downstream demand for distributor services has become increasingly diversified. Clients now expect distributors not only to handle product delivery but also to provide technical support, including training on dental products, installation and usage guidance, after-sales maintenance, and even assistance with certain technical procedures,” said Hu Jiezhang. He noted that traditional small-scale, fragmented independent distributors are ill-equipped to meet these evolving customer needs.

More importantly, due to regional limitations and a shortage of specialized talent, dental distributors find it difficult to expand into larger markets., which also leads to certain difficulties in their bargaining power and product selection with upstream suppliers. It is not difficult to see that the coordination across the entire industry chain in the dental sector is far from smooth.

As the saying goes, “no construction without destruction.” In response to the long-standing pain points accumulated in the industry, Songbai Dental has decided to assume a platform role in the midstream sector. Specifically,By adopting an investment, merger, and acquisition integration model, Songbai Dental collaborates with leading distributors across China in the midstream sector. This enables upstream products to reach downstream institutions and dentists more quickly and accurately. Starting with dentists, the company engages in in-depth communication, establishes effective connections, and incorporates their feedback and suggestions to drive product and technological iterations, thereby enhancing overall industry efficiency.

As can be seen, Songbai Dental’s strategy not only empowers distributors to take on the promotion of upstream new products and technologies but also positions them as partners and consultants to downstream dentists. However, this also means that Songbai Dental, entering the market as a platform, needs to build an increasingly comprehensive set of capabilities. To this end,From multiple dimensions, Songbai Dental has gradually established a comprehensive empowerment system.

For example,In terms of talent attraction, Songbai Dental leverages the resources of its group headquarters to conduct talent recruitment, extensively attracting professionals with multidisciplinary backgrounds. In terms of training, it has established Songbai Academy for internal staff and overseas subsidiaries, as well as Dentist Planet, a platform tailored for the dentist community.

For example,In terms of resource introduction and integration, driven by the initiatives of Songbai Investment, has continuously pursued global investments and strategic partnerships in recent years to introduce high-quality products from both domestic and international markets. Examples include German BEGO dental implants, South Korean Purgo bone graft materials, Swiss NEOSS dental implants, DeepCare’s AI-powered imaging solutions, EasyDentist’s intelligent clinic management software, as well as academic and educational collaborations with Harvard School of Dental Medicine.

Interestingly,To enable physicians to place orders with a single click, Songbai Dental has also built an e-commerce platform., fully leverage the warehouse resources of midstream distributors to maximize matching efficiency and enhance convenience.

“Whether in terms of funding, financial management, information technology infrastructure, talent development, or resource integration, our core objective is to drive substantial growth in the dental industry.” Hu Jiezhang stated that, in this process, effectively managing human capital is critically important. “A person who holds sincere passion and love for the oral health industry will surely bring more surprises to the field.”

Hu Jiezhang recalls that when he met Wang Ruijun, the founder of Songbai Dental’s Henan distribution network, he was deeply impressed by Wang’s perseverance and determination, honed over more than two decades in the dental industry. “Many dentists have become close friends with him, which clearly demonstrates how deeply rooted he is in this field. That is why we have made substantial efforts to support the growth of Smile and Red Sun, as we share a common original aspiration and vision.”

It is precisely this steadfast commitment to the dental profession that enables Songbai Dental, in its role as an industry builder, to work alongside its partners in driving the development of the dental sector.

From the development trends of the oral care industry, digitalization is becoming a core keyword.

“There are two gaps between China's oral care industry and the international level,First, the industry lacks systematic integration; second, there is insufficient standardization within the sector.“At the 6th Zhang Zhenkang Forum, Hu Jiezhang, a guest attendee, stated that to narrow the gap in China’s oral healthcare industry, active digital transformation within the sector is essential.”

Specifically, in two aspects:1. Digitalization of the Oral Healthcare Industry and Services, with the aim of fostering the development of more and better tools across the entire oral care industry—such as chairside digitalization for clear aligner therapy, fast and user-friendly intraoral scanners, and AI-powered imaging analysis—thereby better empowering clinicians and enhancing patient care.

Second, the digitalization of management and ecosystem development across the entire oral healthcare industry.“, with the aim of enhancing the management standards and operational efficiency of healthcare institutions. ‘Software service platforms such as Easy Dentist’s SaaS clinic management system are designed to provide digital operational solutions for midstream dental distributors and healthcare institutions, while bridging various digital technologies to ensure their practical implementation in serving both institutions and patients,’ said Hu Jiezhang.”

Additionally,Since its inception, Songbai Dental has prioritized the development and operation of digital technologies.For example, in terms of information technology development, Songbai Dental boasts a 100-member digital team, including teams dedicated to the distribution digital operations platform, e-commerce, data center, and dental clinic SaaS software.

“Building an in-house team to handle digitalization may not seem like a ‘smart’ choice, but we believe it is absolutely necessary,” Hu Jiezhang told VCBeat.The digital transformation of the industry is, in fact, a “long-term endeavor.” It requires not only technical expertise but also a deep understanding of the dental industry, as well as the commitment and resilience of market participants to support the industry over the long haul.

As of now,Songbai Dental has already achieved significant breakthroughs in digitalization.For instance, on the product side, Songbai Dental has built a database covering products across the entire dental industry, which can be likened to a digital “encyclopedia” of dental products. Tailored specifically for dental distribution, this system integrates key operational components—including order processing, fund management, logistics, customer relationship management, sales management, online e-commerce, and business analytics—thereby enhancing the efficiency of supply chain management.

Furthermore, in empowering dentists through digitalization, Songbai Dental has established an online training system and engaged in academic exchanges with top-tier institutions such as Harvard University, focusing on the introduction and training of digital products. It is reported that Songbai Dental may collaborate with physicians in the future to incubate digital diagnosis and treatment projects.

As is well known, with recent breakthroughs in technologies such as artificial intelligence and big data, the continuous iteration of digital technologies has brought significant opportunities to the oral care industry, including the research and development of digital dental equipment and materials, the expansion of digital dental application scenarios, and the cultivation of digital dental professionals.

“The dental industry is a key stronghold of digitalization and one of the fields where innovative technologies are most readily applied and implemented."Hu Jiezhang stated, 'We are committed to sustained long-term development and investment to build a new digital dentistry ecosystem.'"

In addition to deepening its presence in the industry,Songbai Dental is also actively fulfilling its social responsibility through efforts in two areas: empowering dentists to achieve success and benefiting more patients.

“From the industry perspective,Dentists Are the Primary Driving Force on the Supply Side of the Oral Care Industry“Therefore, we are continuously building a training system for dentists and providing them with more tools to enhance efficiency.” In Hu Jiezhang’s view, although the entire process is time-consuming and labor-intensive, and may even yield limited returns from a capital perspective, empowering dentists to succeed is the true path to improving the industry.

It is important to recognize that training a competent dentist often takes more than a decade, resulting in a talent pipeline that cannot keep pace with market demand. This discrepancy lies at the heart of the severe supply-demand imbalance currently plaguing the dental industry. Therefore,Enhancing dentists’ efficiency and expanding their service radius are currently important approaches to boosting supply capacity, thereby meeting the growing oral healthcare needs of more patients.“Only by starting with physicians and committing to addressing the pain points in industry development can we truly enhance the overall strength of the sector and cultivate leading talents and enterprises.”

On the other hand,Songbai Dental is also actively participating in public welfare activities to serve patients.For example, during the 26th China International Dental Equipment & Materials Exhibition and Technical Exchange Conference, Songbai Dental once again participated in the “Mountain Chrysanthemums, Building Dreams Together” public welfare project, which is dedicated to caring for the oral health of children in impoverished areas and was jointly initiated by the International Exchange and Cooperation Center of the National Health Commission and the Chinese Foundation for Oral Health Prevention and Control.“Songbai Dental Health Tour”, to rally mid-tier partners within the ecosystem and collaborating brands to jointly engage in public welfare initiatives.

“This is a highly rewarding endeavor. As we continue to deepen our engagement with the industry, we are also helping it move toward a virtuous cycle,” said Hu Jiezhang.In its future plans, Songbai Dental will continue to fulfill its social responsibilities, consistently empowering dentists to succeed and benefiting patients.

In summary, Songbai Dental has made significant strides in industrial layout, digitalization, and corporate social responsibility, with plans to deepen these efforts further. Based on this, we have reason to believe that as oral care innovators represented by Songbai Dental continue their endeavors, the traditionally “slow” oral healthcare industry is poised for “rapid” development.

Editor's Note:On the day before this article was published, Angelalign Technology, the brand under Songbo Investment Holdings—the backbone of Songbai Dental—went public. Known as “China’s First Smile Stock,” this giant in clear aligner orthodontics has validated how the Songbo ecosystem’s hands-on involvement and long-termism have provided rich nourishment to its “promising contenders,” nurturing them step by step into industry-leading enterprises.

On the same day, Songbo Investment entered into a strategic partnership with Wuxi Medical College of Jiangnan University and the Xidong New City Business District. “A journey of a thousand miles begins with a single step.” From this starting point, Songbo will actively promote the development of the local dental industry, fully leverage its empowering capabilities, support the growth of Wuxi’s healthcare sector, and advance the initiatives of Healthy China and Healthy Wuxi.