Meituan Healthcare Files IPO Prospectus to Empower Digital Transformation in China's Billion-Dollar Dental Services Market
Meituan
E-commerce Platform Service Provider
In recent years, driven by economic growth and rising oral health awareness among Chinese residents, China’s dental industry has been experiencing rapid expansion. In the face of increasingly informed consumers, the upward shift of traffic entry points, and evolving consumption habits, how can the dental sector seize these emerging opportunities? On January 8, Meituan Dianping’s Medical and Health Division hosted the inaugural Private Dental Industry Summit in Beijing. The event was attended by distinguished guests, including Professor Wang Xing, Honorary President of the Chinese Stomatological Association, as well as representatives from more than 500 private dental institutions, such as Happy Dentistry and Bybo Dental.
The conference released the oral care industry’s first internet big data report, the “2018 Oral Care Industry White Paper,” which provides insights into the current state of the oral healthcare services sector, analyzes the profiles of online dental users in the internet era, and supports the next phase of development for the oral healthcare services industry.
Dental Consumers Exhibit Strong Trust-Driven Spending Patterns, with Service Attitude Being the Primary Concern
The dental industry is a highly marketized and mature vertical segment within the healthcare sector, currently experiencing rapid and stable growth under the guidance of multiple national policies. Public data from the American Dental Association (ADA) shows that the U.S. dental services industry is valued at $124.4 billion, with per capita dental expenditure amounting to $384. According to dental visit data from the 2018 China Health and Family Planning Statistical Yearbook and market estimates, the scale of China’s dental services industry in 2018 was approximately RMB 103.5–121.5 billion. This represents roughly one-seventh of the U.S. market size, while per capita dental spending in China is merely 3.0% of that in the United States. Given China’s vast population base and steadily growing economy, significant potential remains to be tapped.
As a trusted internet-based dental service platform, Meituan Dianping’s Healthcare Division leads the industry in both the number of partnered dental institutions and transacting users. It has established collaborations with 7,300 dental medical institutions, serving over 2.2 million ordering customers throughout 2018. Analysis of user access paths and preference data from Meituan Dianping’s dental consumers reveals that dental healthcare consumption is a typical “trust-based consumption,” where most consumers assess the credibility of dental institutions primarily based on their trust in user reviews.
Beyond the appeal derived from product attributes meeting consumer needs, patients place greater emphasis on whether dental institutions can provide satisfactory services; thus, peer reviews are more effective in stimulating consumer interest. Consumers also prioritize institutions with higher star ratings. When star ratings are equivalent, the volume of reviews directly influences patients’ choice of dental institution.
An analysis of over 120,000 dental care consumer reviews from the Meituan and Dianping platforms reveals that “service attitude” is the primary concern for dental consumers, with word-of-mouth reputation being key to standing out among numerous dental clinics. Regarding the services themselves, consumers are most concerned about “consumption experiences” involving issues such as “bleeding” or “pain,” which account for 25.9% of concerns. Consumer habits have thus become a critical reference indicator for dental institutions seeking to enhance their service capabilities.
Dual Imbalance of Online Supply and Demand: Meituan-Dianping Helps Dental Institutions Achieve Digitalization
“As the spring river warms, the ducks are the first to know.” The dental industry is also undergoing continuous innovation in step with the times. Under the “Internet Plus” wave, shifting consumer habits have moved traffic entry points online, prompting dental institutions to transition their marketing models from traditional offline channels to digital platforms. From 2016 to 2018, the volume of online transactions for dental products surged by 129%, while the number of online dental institutions grew by only 36%. This indicates that the pace of digital adoption among dental institutions has significantly lagged behind the growth in online demand.
In response to the current state of the industry, Meituan Dianping’s Healthcare Division has further enhanced its innovative marketing service capabilities, proposing a three-pronged approach—“modularization of service items, structuring of user reviews, and commoditization of physician services”—to help dental institutions strengthen their online presence and gradually achieve digital transformation on the supply side.
In terms of modularizing service offerings, Meituan Dianping has moved online the information that dental clinics previously disclosed to consumers in offline settings—such as applicable symptoms, dental techniques, and frequently asked questions—ensuring that all project details consumers need to know before payment are clearly accessible on the platform.
In terms of structuring user reviews, clear labeling and categorization of content such as dental consumable brands, service experiences, and consumer diaries in existing reviews make the reference information available to consumers more comprehensive and effective.
In the commoditization of physician services, addressing the previous issues of consumers’ lack of clarity regarding physicians’ backgrounds and the information asymmetry between both parties, we will gradually enable consumers to schedule appointments online, allowing physicians to manage their consultation schedules more effectively. Meanwhile, by displaying physicians’ qualifications, professional resumes, and technical specialties, we will make it more convenient for consumers to select suitable physicians.
Dong Lin, General Manager of Meituan Dianping’s Healthcare Division, stated, “The dental sector is a key strategic focus for the Healthcare Division in 2019. The mutual trust chain among ‘consumers–Meituan Dianping–medical institutions’ forms the foundation of our in-depth services to the dental industry. Building on this foundation, we will continue to enhance our demand-side service capabilities by offering diverse and personalized products tailored to different consumer segments. Meanwhile, we will intensify efforts to advance the digital capabilities of dental institutions on the supply side, thereby achieving a win-win outcome for all three parties.”