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SmileDirectClub (SDC) to Boost Europe Presence, Enter France

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SmileDirectClub , in its efforts to expand its international footprint, plans to foray into France in the beginning of the fourth quarter of 2021. France will be the seventh European country in which the company will have a presence.

SmileDirectClub plans to launch its premium clear aligners, telehealth platform, and whitening system at its first France SmileShop in Paris. This will be followed by the company’s entry in additional locations.

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Customers who want to undergo clear aligner treatment using the SmileDirectClub telehealth platform will be able to book a free appointment at a SmileShop to capture a 3D image of their teeth. They can also visit the company’s website to request a dentist-prescribed impression kit.

The company noted that the clear aligner treatment with SmileDirectClub is directed and managed remotely using telehealth by an affiliated and locally registered dentist or orthodontist, from initial diagnosis to completion.

Strategic Significance

So far, SmileDirectClub has seen huge market opportunities for its advanced, easy-to-use, and affordable clear aligners and telehealth platform. The company, since its foray into Europe in 2019, has experienced remarkable market penetration of its brand.

As France is Europe’s third-largest market, the company expects to see meaningful consumer demand for its oral care products. According to SmileDirectClub, approximately 80% of French consumers seek to improve the straightness of their teeth. However, the huge cost of orthodontic treatment is a big barrier for them. The company’s affordable clear aligners, which are priced at 60% less than braces, are expected to capture this market well.

Global Market Opportunity for Clear Aligners

Going by a Fortune Business Insights Report, the global clear aligners market is projected to grow from $2.85 billion in 2021 to $10.04 billion in 2028 at a CAGR of 19.7%.

Recent International Developments by SDC

In terms of the retail partnership, SmileDirectClub’s oral care products are getting rolled out at Walmart and Shoppers Drug Mart locations across Canada. By the end of 2021, the company’s ancillary product portfolio will be available through every retail channel, including drug stores, grocery stores, club stores, mass retailers, and e-commerce. 

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In March 2021, SmileDirectClub announced its plan to continue the company’s international expansion with a launch in Mexico. The first two SmileShop locations were opened in Mexico City. This marks the company’s entry in Latin America as it pursues the massive global market opportunity for its innovative, premium, and affordable telehealth solution for orthodontia.

Share Price Performance

Over the past year, shares of SmileDirectClub have underperformed the industry. The stock has declined 39.5% against the industry’s 36.3% rise.

Zacks Rank and Key Picks

Currently, SmileDirectClub carries a Zacks Rank #4 (Sell).

A few better-ranked stocks from the Medical-Products industry are Envista Holdings Corporation (NVST - Free Report) , VAREX IMAGING (VREX - Free Report) , and BellRing Brands, Inc. (BRBR - Free Report) .

Envista Holdings, which carries a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 27.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

VAREX, carrying a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 5%.

BellRing Brands, with a Zacks Rank #2, has a long-term earnings growth rate of 29.1%.

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