Get to know the international dental clinic franchise network, awarded by ABF: VIP Dental!

(Veja a vers?o em português aqui)

Let’s start this article with some hot news: VIP Dental Clinics has won today another award from ABF (the Brazilian Franchise Association), this time in the International Franchise category, and one of its franchise stores is running for the International Highlight!

The Brazilian Franchise Association gives the awards for their associated franchise chains at the Franchising Week that’s happening in October this year.

By this news only you can tell that this case is a great success!

Coife Odonto in Brazil is among the largest in this market sector and has accumulated eleven Franchising Excellence Awards from ABF, until now! 

The trajectory of this startup, led by Mr. Rodolfo Magalh?es, a pioneer in taking a franchise of Brazilian dental services to China, gained prominence a few months ago, and is an inspiration for entrepreneurs who wish to dare!

VIP Dental is the adaptation of the Coife Odonto brand (a national chain) intended for the international market; and has had enormous success in Shenzhen, despite the present health crisis.

It all started in the city of Jundiaí, State of S?o Paulo, 28 years ago. Mr. Luciano Magalh?es, Rodolfo's father, did not know, but he was already laying the foundation for the creation of VIP Dental.

In 1992, Mr. Magalh?es, a skilled trader, started a partnership with a fellow dentist. Together, they had a clinic, but Mr. Magalh?es was not always able to apply his ideas to leverage the business.

Thus, Magalh?es decided to buy out the partner's share. Soon, the effects of the changes began to appear and the business grew, going from one to 12 clinics.

Rodolfo started working with his father when he was only 12 years old. He had contact with all the sectors in the company and was always close to the business, even opting to study engineering, years later.

After some time, his father invited him to join the company, where the franchise format started to take shape. The challenges were considerable.

Rodolfo understood that the operation was very dependent on the commercial department, and that this area needed major improvements, so he got closer to the field of operations.

He started to live in the Brazilian Northeast region where the chain's expansion was more concentrated, getting closer to the details of the operation and, with constant evolution and a lot of work, Coife Odonto went from 20 to 250 stores.

Sometime later, Rodolfo and Mr. Magalh?es saw that they needed more trained people by their side, after all, they were getting overwhelmed. Rodolfo then invited Mr. Fábio Serrano, who had a work style similar to his own.

With a reliable person in the back office, Rodolfo started to travel and dedicate himself more to the development of the company's projects. During this period, Fábio received many teachings from Mr. Magalh?es, who always encouraged the development and boldness in several projects executed on the network.

The internationalization process: VIP Dental is born

“We decided to get to know the market and some consulting studies were carried out. At first, we thought about importing material, not opening a clinic. We ended up participating in several local franchise and dentistry fairs, and we made about six or seven trips back and forth,” said Rodolfo to Pequenas Empresas & Grandes Negócios, a Brazilian businesses magazine.

However, after much consideration, Rodolfo decided to open his own clinic in Shenzhen.

Despite the challenge, the entrepreneurs were confident in dealing with a new culture. This is because they were fully aware of their differential: a model that prioritizes the relationship with the customer, unlike the Chinese commercial culture, which is, in Rodolfo's words, “more business oriented”.

“We have a service standard that is comfortable for the customer,” points out Rodolfo.

Regarding Brazilian competitors, Rodolfo sees a similar scenario and exemplifies how the organization and service provided by Coife Odonto is really different from the competition:

“A lot of people think that dental franchises are all the same, but that is a big mistake! In Teresina, a state capital in Brazil, for example, I have a great friend who is a franchisee and owns several stores. His first store opened in January 2018. At that time, a college friend of his also opened a clinic in a competing franchise. Ten months later, both were already making about R$ 100,000.00 a month, which is a considerable amount. However, this franchisee of mine worked less and only in the strategic part, since the company, in great part, functioned without his intervention, with excellent customer satisfaction and with an average profit above 25%. In the meantime, this franchisee's friend needed to go to the company every day, he was surrounded by problems and, still, he didn't see any profits. Today, my franchisee has, already, four stores, going to the fifth.”

VIP Dental arrived in China to start surveying the market five years ago.

The first challenge was to decide the corporate structure and find a good place to settle.

At first, Rodolfo considered a joint venture. The negotiations lasted almost a year, but did not progress; and it soon became clear that opening the clinic without any partnership would be much more advantageous.

Over time, the business started to gain more popularity and VIP Dental decided to invest in branding, and that’s when Fastdezine came to participate!

I met Fábio in Lisbon, at an event of the Portuguese Franchise Association (APF), in partnership with the Brazilian Franchise Association (ABF). A few days later, we went to China and visited the VIP Dental clinic.

Marketing in China

Launching a new product is never a simple task. Now, imagine doing it for a completely different audience!

Knowing this, Rodolfo and Fábio developed a marketing research in Europe and Asia.

With the data collected, two distinct concepts became clear.

In Europe (Portugal, Spain, Germany and the United Kingdom) Marketing Communication should be younger, modern and clean, with a focus on everyday situations.

Asia, on the other hand, needs a different approach: more aggressive communication, with elements such as prices on parts and exaltation of luxury and high standards as a sign of product quality.

Regarding the advertisement for dental services, Asia and Europe have less strict rules, allowing the creation of high impact campaigns in public spaces.

In addition to physical means, the digital presence and reputation of online brands is extremely relevant for the Chinese public, together with good service, which is indispensable. All of these strategies are already generating good results for VIP Dental.

With Fastdezine, VIP Dental is creating a whole new brand identity and launch campaigns, focusing on Chinese culture. Website, digital and offline communication materials and packaging of new products are the main services.

Fábio comments: “The main differentials highlighted in the brand, and created in partnership with Fastdezine, were the focus on quality, technological innovation in Dentistry and working with renowned foreign dentists. We are the best in dentistry worldwide and are now present in China.”

And the brand's impact on the new market is already absolute. Both the foreign public in China and the older Chinese public identify international quality in the brand.

See some pieces designed :

The opening of VIP Dental Clinics, which would be in January, was postponed to April, due to the pandemic. Even so, the operation reached break-even in the second month, and preparations for the second unit are already underway.

Many challenges still need to be solved, such as managing people, even with a small team.

VIP Dental has some sales processes in progress, but Rodolfo ponders:

“I still don't have this thirst for expansion. First, we are doing the franchisor's ‘homework’ with this clinic of ours, which is doing very well. The knowledge we are gaining in the market is enormous. I believe that we will release franchises for commercialization in the beginning of 2021.”

The caution, however, is accompanied by other projects such as the expansion to Portugal, which is already underway with the first unit confirmed.

Despite all the challenges, Fábio comments:

“Here in China, foreign dentists are seen with great appreciation, having a value and recognition that raises the standard of our clinic compared to Chinese dental clinics. Culture influences a lot, for example: the Chinese consumer arrives at the clinic with the certainty of what he wants to do, since they are accustomed to Chinese clinics that perform the required service at the time they want. In our Clinic we explain, in detail, that the service can be done only after a complete checkup.”

VIP Dental is "educating the Chinese consumer to consume dentistry in a Western standard, which is concerned with prevention and longevity in the services provided."

Rodolfo and Fábio continue to work for the development of VIP Dental and the expectations for the near future are very positive!