Once an emerging pioneer in the field of telemedicine orthodontics, SmileDirectClub pioneered a disruptive business model through 3D printing: remote** orthodontic services. Without having to travel to and from the hospital, patients can receive customized orthoses in three to four weeks. However, smiledirectclub's accumulated debt is as high as about 900 million US dollars, and its own "hematopoietic" ability is far less than its operational "blood loss" ability, and smiledirectclub announced its closure in December 2023.
Digitalization has gradually become a core keyword in the development of China's oral medical industry, and 3D printing technology, as a typical digital manufacturing technology, is destined to be integrated with the digital upgrading process of oral diagnosis and treatment, denture restoration, and orthodontic product processing. So it can be said that smiledirectclub stepped on the trend of technological development, but why did it close?Perhaps the lessons learned from the SmileDirectClub case can be of valuable help to companies in other industries.
3D printing digital dentistry three links.
3D Science Valley***
According to the market observation of 3D Science Valley in the field of oral medicine, the dental application market has gradually developed from the single-dimensional demand of how to apply 3D printing equipment and materials in the early stage to how to integrate 3D printing technology with the digital chain of oral diagnosis and treatment and dental product processing to improve the efficiency and quality of diagnosis and treatment.
In order to "stake the ground", SmileDirectClub needs continuous external "blood transfusion", coupled with infringement lawsuits, SmileDirectClub's rise stems from the advantages of scale customization brought by 3D printing, and its closure is followedThe complex external environment, the consumption suppression caused by inflation in the United States, the accurate brand positioning and value proposition, and the operation and management of SmileDirectClub itself, especially the cash flow management, have a lot to do with it。The closure of SmileDirectClub is not an isolated incident, though, but part of a larger trend impacting the world of startups in 2023, a year in which many startups struggled and closed due to challenging market conditions.
According to the 3D Science Valley, for any product that promotes 3D printing to industrial applications, we will find one or more combinations of 3D printing value: the value of customization, the complexity of the part, and the lifetime value of the product. In the field of orthodontics, fortunately, the application of 3D printing satisfies three major values. With the combination of 3D printing and digitalization, SmileDirectClub provides the convenience of remote diagnosis and treatment as one of its moats of competitive advantage.
SmileDirectClub, which was founded in 2019 to manufacture and sell dental aligners, claims that the cost of its surviving aligners is 60% lower than other options. Since its inception, SmileDirectClub's offline services have included its own Smileshops, as well as partnerships with CVS and Walgreens.
According to the market observation of 3D Science Valley,SmileDirectClub's differentiated market positioning: In addition to cheapness, it also has convenience and a 100% money-back guarantee(One of the first cycles is 24 months, with a total price of $1,950 to $2,386 - depending on the choice). In terms of cost control, in addition to using HP's 3D printing technology to efficiently produce the molds needed for orthodontic devices, SmileDirectClub also reduces the frequency of communication between doctors and patients, and enables patients to communicate data remotely at home by providing self-service scanning kits, so as to reduce the need to repeatedly go to the hospital or clinic to queue up to see a doctor.
So is the value proposition of smiledirectclub not recognized and paid for by the market, or is there other reason that caused it to go out of business?
The chain of funds is broken
Signs of SmileDirectClub's closure date back to September 2023, when SmileDirectClub's accumulated debt was as high as about $900 million, and its own "hematopoietic" ability was far less than its operational "bleeding" ability, and as bankruptcy protection, the judge approved a financing plan worth $80 million, with the founders promising to invest at least $20 million and are expected to invest an additional $60 million, which is Section 11 of the U.S. Bankruptcy Code chapter of the Strategic Initiative.
In the face of the dilemma, CEO D**id Katzman expressed confidence in the company's future, emphasizing that the Smilemaker platform and the CarePlus growth plan were key to success. Known for its innovative approach to orthodontics, SmileDirect utilizes advanced 3D printing technology to produce personalized clear aligners that claim to revolutionize the way oral care is done. Its approach will:Telemedicine is combined with cutting-edge technology, providing customers with affordable, convenient, and convenient dentistry**, designed for a seamless transition with a focus on providing uninterrupted, high-quality oral care to customers.
Competition
Diverse dental applications of 3D printing.
3D Science Valley***
Although SmileDirectClub's funding chain is broken, according to 3D Science Valley's market observation, in September 2023, Lightforce Orthodontics, the world's first manufacturer of fully personalized 3D printed braces systems - bracket aligners, received $80 million in Series D funding led by Ally Bridge Group, which Lightforce will use to open a second digital factory.
SmileDirectClub manufactures clear aligners by 3D printing aligner molds. Different from SmileDirectClub's approach, Lightforce has developed an application for direct manufacturing of ceramic ** aligner attachments (CCAA) through ceramic 3D printing technology, which is expected to overcome the shortcomings of existing technology. LightForce uses 3D printing technologies such as digital light processing (DLP), material jetting, and ceramic pastes to create ceramic attachments. At the time of installation, these ceramic 3D printed attachments are placed in an indirect transfer tray and then bonded to the tooth surface using a resin material.
According to Lightforce, the shape of each tooth and each patient's jaw is as unique as their fingerprint, so there is no one type of orthodontic** that can fit all patients. Performing with traditional universal braces requires the orthodontist to make multiple wire and bracket adjustments to achieve the desired outcome for the patient, which can add months. Lightforce's personalized approach dramatically reduces the need for adjustments, resulting in shorter times, fewer appointments, and better results than traditional braces.
In this regard, at least in terms of the value proposition of SmileDirectClub, SmileDirectClub seems to be more focused on the time it takes for patients to travel to and from offline stores and the cost reduction per visit.
For long-term projects such as orthodontics, which 3D printing scheme has a good effect?This takes time to verify and requires the accumulation of word-of-mouth in the market. However, in terms of the **braces** solution that is on the same track as SmileDirectClub, Invisalign has verified the applicability and development trend of 3D printing for large-scale customized products with its leading performance in the world. However, it is worth noting that with the further penetration of 3D printing in the orthodontic field, the market competition is also becoming more intense, and the high profit margins of Invisalign are disappearing.
Invisalign Invisalign Financial Performance in USD
The domestic Angelalign has landed on the Hong Kong Stock Exchange, and Zhejiang Zhengya Dental will start the A-share IPO process in April 2023. However, the impact of domestic centralized procurement on the market development of 3D printing for large-scale customized braces still needs to be observed in the future.
Angelalign's financial performance - profit.
To add insult to injury
While the CEO is buoying the market's confidence with optimism, the reality is much bleaker. In October 2023, SmileDirectClub** was delisted from the NASDAQ exchange, dealing a major blow to its financial stability. The company's cash liquidity issues were further exacerbated by the company's legal battle with Align Technology, the maker of Invisalign, which resulted in SmiledirectClub being awarded $63 million in damages.
Rumors of internal unrest, including email leaks allegedly unfairly paid and frequent layoffs, have exacerbated the company's woes. These unsubstantiated claims, combined with a bankruptcy protection filing, mark a severe decline for SmileDirectClub.
In addition, the company has faced legal challenges, notably in November 2022, when the Federal Court of Australia ordered SmileDirectClub to pay a fine of A$3.5 million (US$2.3 million) for misleading statements about medical reimbursement. SmileDirectClub incorrectly states that patients may receive reimbursement for braces and related items from private medical care**. This misinformation affected a large portion of the Australian customer base, further damaging the smiledirectclub's reputation and exacerbating its financial and operational challenges.
Lessons
The collapse of SmileDirect marks the end of a company that was once valued at $8.9 billion, and from a broader perspective, SmileDirect's closure reflects an unfortunate trend in the startup ecosystem amid a volatile economic environment. According to a report in The New York Times and data from Pitchbook, 2023 has been a particularly tough year for startups, with more than $27 billion in venture capital unable to save 3,200 failed startups. The situation has been described as a "mass extinction event" for start-ups. The harsh economic environment in 2023 has highlighted the vulnerability of start-ups in the face of rapid market changes and highlighted the importance of solid cash flow and economic strength in difficult times
The closure of SmileDirect also highlights the leadership of rival Invisalign. The closure has even raised questions about the future dynamics of the direct-to-consumer orthotic appliance industry. In recent years, several competitors have emerged, including Candid, Byte (which offers a teledental model similar to SmileDirectClub), Aspen Dental, and OrthoFX.
SmileDirect's story is not only a failure, but also one of the lessons learned in the turbulent world of startups. Driven by disruptive business models and technological innovations, its initial success demonstrates the potential of telemedicine in the field of orthodontics. However, its rapid decline highlights the importance of financial stability, market adaptability, and the risks inherent in legal disputes and internal management issues. Lessons learned from the rise and fall of SmileDirect could influence future strategies and decisions in the field of telehealth orthodontics.
To pay attention to how 3D printing can create more market opportunities in the ever-changing digital digital field and understand the logic of competition in the digital dental market, please refer to the "3D Printing and Digital Dentistry" released by 3D Science Valley0》。
If you know deeply, you can go far by doing. Based on a global network of manufacturing experts, 3D Science Valley provides the industry with an in-depth view of additive and intelligent manufacturing from a global perspective. For more analysis in the field of additive manufacturing, follow the *** series released by 3D Science Valley.
*Submissions l Send to 2509957133@qqcom