Core Insights - The orthodontic market in the Asia-Pacific region is experiencing rapid growth due to increased disposable income and technological innovations, particularly in invisible aligners and digital scanning technologies [1][5] - The introduction of centralized procurement policies in China has led to significant price reductions for orthodontic materials, with an average decrease of 43.23% and a maximum drop of 88% for selected products [2][3] - Envista Holdings Corporation is investing 1 billion yuan to establish a new manufacturing base in Suzhou, which will enhance its local production capabilities and support its differentiation strategy in the Chinese orthodontic market [5][6] Industry Trends - The centralized procurement policy is seen as an "industry upgrade" rather than a simple reshuffle, benefiting more competent market participants while potentially eliminating less competitive ones [2][3] - The service fee constitutes over 70% of the total cost of orthodontic treatment, indicating that while material costs are decreasing, the overall impact on treatment prices may be limited [3][4] - The orthodontic market is witnessing a shift towards standardization of service fees, which may encourage more patients to seek orthodontic treatment [3][4] Company Developments - Envista's brand, Ormco, is focusing on local production, product innovation, and empowering doctors to build a differentiated competitive edge in the Chinese orthodontic sector [1][6] - Ormco offers three main orthodontic solutions: fixed bracket treatment, customized fixed bracket treatment, and digital invisible aligner treatment, with a strong market share in both fixed and invisible product lines [4][6] - The company aims to enhance its production, service, and sales capabilities in China, responding quickly to market demands while also exporting products to Europe and Australia [6][7]