Western materials, equipment, and techniques are now widely employed in private clinics, narrowing the gap between the services available in Russia and other European countries. Currently, the value of all dental equipment and supplies sold in Russia is estimated at $350 million. The rapid growth of this sector during the early and mid-1990s, interrupted by the August 1998 ruble crisis, has recovered and is estimated to continue by 10 percent during next 2-3 years.

The growth has pushed the market to generate a significant demand for imported dental supplies and equipment. Private clinics, the primary purchasers of imported dental equipment and supplies, continue to provide a significant amount of all dental services. Domestic products are generally of lower quality than imported products and meet only about 20 percent of demand. Currently, substantial opportunities exist for U.S. manufacturers of dental equipment and supplies seeking to enter the Russian market or expand their reach there.

Potential for U.S. Companies

Imported products account for approximately 80 percent of the Russian dental market. U.S. manufacturers are among the leading sellers in Russia, along with those from Germany, France, Switzerland, Japan, Spain, and Finland. Dental products from Brazil, Argentina, Korea, and Turkey provide competition in the lower-price range. The demand for dental products in the mid-price range is steady, and both state-run and private clinics are continually upgrading their facilities and services. Thus, the market is receptive to dental equipment and materials that use the most advanced technologies and have a high quality/price ratio.

U.S. products are valued for their quality, reliability, and price. European products are competitive in certain categories of equipment; geographic proximity plays a significant role in their companies’ ability to favorably position products on the market.

A positive factor for U.S. manufacturers is the nature of the industry as highly privatized. This means that it relies mainly on private financing and out-of-pocket payments, and does not suffer from the significant funding constraints that can hamper other medical purchases in Russia.

Currently, the Russian market is very receptive to imported good in the following areas:

• Dental chairs, cabinetry, and delivery systems; equipment for dental laboratories; endodontal devices and supplies; polymerizing lamps; and micromotors. There are no Russian producers of high-quality equivalents for these products. Private clinics consider that imported furniture, particularly dental chairs, is necessary for shaping their image and attracting clients. Clinics are open to making significant investments in such equipment. Moreover, clinics that initially purchased simple, imported workhorses are upgrading to models in the $15,000-30,000 range.

• X-ray equipment and supplies, interoral x-rays, radiographs, modern ultrasound equipment, and dental lasers.

• Anesthetics (local and topical) and syringes. Anesthetics are widely used in Russian dentistry and demand far exceeds domestic production capabilities. Moreover, Russian brands are widely considered to be low quality, so clinics prefer imported products.

• Aesthetic dentistry, bleaching, and restoration are relatively new to the Russian market, but are gaining popularity. There is a growing demand for hygiene and scaling instruments, instruments and materials for modern aesthetic dentistry and tooth hygiene, teeth whitening and bleaching products. As the industry modernizes, the popularity of routine hygiene services is growing, creating demand for the materials and equipment necessary for all aspects of hygiene. Similarly, pediatric sealants, previously unknown in the Russian market, are coming into wider use.

• The demand for endodontic materials and the need for removable and permanent prostheses, such as dentures and bridges, are currently strong and expected to grow.

• The present market for implants is weak because of the procedure’s high price, as well as a lack of familiarity with the procedure among patients and doctors. As with prostheses, though, the generally poor level of dental health drives the potential growth in the field of implantology. • Orthodontia. There are currently few firms in Russia importing or distributing orthodontic products, but both pediatric and adult orthodontics offer promising opportunities.

• Used equipment. There is a substantial demand for used dental equipment, particularly ultrasound equipment, dental complexes, panoramic tomography devices, and other equipment and instruments for dental office. Mid and high-end clinics prefer to purchase new equipment as it is an integral part of the clinic's image. Therefore, the best potential end-users for refurbished equipment are state clinics.

Marketing Strategy and Promotion

U.S. manufacturers and suppliers can increase their presence in the market by marketing their products to the professional dental industry associations, which play a significant role in the dental equipment and supplies market in Russia. The Russian Dental Association is the largest organization, with 69 regional divisions throughout the country. The other association, ROSI, is also very influential among its members, which include dental clinics, doctors, and other stomatological professionals. Both organizations play an important role in the introduction of new technologies and overall developments in the industry.

The most effective way to reach dentists is by holding educational seminars featuring the manufacturer's product because many firms have already established clienteles. In fields with complex procedures, such as implan-tology, orthodontics, and use of articulators, dentists have considerable interest in new materials and techniques, but lack the training necessary to incorporate these products into their practices. Venues for introductory seminars are major trade shows and dental symposia.