“Conquering foreign markets - the German and the Scandinavian Medtech Markets"
Webinar In2LifeScience
20. June 2013
Mr Benny E. Sørensen, In2LifeScience Consultant Partner SØRENSEN – Connecting Markets
Agenda
1. Short presentation SØRENSEN – Connecting Markets
2. Introduction: Lower Saxony as a gateway to Germany
a. Lower Saxony a strong Life Science location
3. Introduction: Denmark as a gateway to Scandinavia
a. Medicon Valley – a top medtech region
4. Practical guidelines to successful internationalization
5. Practical cases
6. Questions/ Discussion
20th June 2013
Our Organisation
Sales, Marketing, lead-generation DK
Sales, Marketing, lead-generation DE
Project Management
1. Short presentation SØRENSEN – Connecting Markets
Our Services
Coaching & Strategiy development
Market research
Partnering
Assistance with own set-up
1. Short presentation SØRENSEN – Connecting Markets
Selection of Life Science reference projects
1. Short presentation SØRENSEN – Connecting Markets
Selection of public cooperation partners – Germany
1. Short presentation SØRENSEN – Connecting Markets
Selection of IHK‘s Germany
• IHK Braunschweig
• IHK Stade
• IHK zu Hannover
• IHK Lüneburg-Wolfsburg
• IHK Osnabrück-Emsland
• IHK Oldenburg
• IHK zu Münster
• IHK Rostock
• IHK Berlin
• IHK Essen
• IHK Köln
• IHK Kassel
• Etc.
36
Selection of public cooperation
partners – Germany
1. Short presentation SØRENSEN – Connecting Markets
Selection of public cooperation partners – Denmark
1. Short presentation SØRENSEN – Connecting Markets
Germany
82 m citizensNominal GDP per capita (2012): EUR 32,276Main religion: Christianity, 30% Catholics (South+West), 29,9% Protestants (North+East)Head of state: Federal president Joachim GauckHead of government: Federal chancellor Angela MerkelAnnual real GDP growth (2012): 0,7%Major Trading Partners: France, the United Kingdom, the Netherlands, the United States and ChinaLanguages: German. 67% of German citizens claim to be able to communicate in at least one foreign language and 27% in at least two languages other than their own
2. Introduction Lower Saxony as a gateway to Germany
Germany
82 m citizensRegional differences between North, East, West and South
2. Introduction Lower Saxony as a gateway to GermanyFederal State Areal km² Citizens, total Citizens/ km²
Berlin 891,54 3.431.675 3.849
Hamburg 755,16 1.772.100 2.347
Bremen 404,28 661.866 1.637
Nordrhein-Westfalen 34.088,43 17.933.064 526
Saarland 2.568,65 1.030.324 401
Baden-Württemberg 35.751,48 10.749.506 301
Hessen 21.114,75 6.064.953 287
Sachsen 18.419,48 4.192.801 228
Rheinland-Pfalz 19.853,70 4.028.351 203
Schleswig-Holstein 15.799,22 2.834.260 179
Bayern 70.551,58 12.519.728 177
Lower Saxony 47.626,60 7.947.244 167
Thüringen 16.172,14 2.267.763 140
Sachsen-Anhalt 20.447,64 2.381.872 116
Brandenburg 29.480,97 2.522.493 86
Mecklenburg-Vorpommern 23.186,29 1.664.356 72
Germany, total 357.111,91 82.002.356 230
Source: Statistik Portal der Statistischen Ämter des Bundes und der Länder
Lower Saxony – a gateway to Germany and a gateway to Europe
An industrial location with a great future
The second-largest German federal stateThe fourth-largest population (approx. 8 m)Geographical location in the heart of the European UnionExceptional infrastructure: central hub
linking northern and southern, eastern and western Europe
Lower Saxony – a gateway to Germany and – a gateway to Europe
2. Introduction Lower Saxony as a gateway to Germany
2. Introduction Lower Saxony as a gateway to Germany
Lower Saxony
Strong sectors
Lower Saxony is home to almost every sector of industry and commerce and many sectors are at the forefront. These include:
- The automotive industry including - The maritime industry- The automotive supply industry - The steel industry- The chemical industry - The aviation industry- The agricultural and food industry - Machine-building- Solar and wind energy generation - The healthcare industry- The life science and medical sectors - The insurance and tourism branches
Life Sciences in Lower Saxony
Life Sciences and Biotechnology take a top position in Lower Saxony
More than 260 companies with almost 20,000 employees work on enzymes, vaccines, innovative medicines and seeds
Extensive research landscape with many first-class research facilitiesArea of life science: 18 universities and technical collegesArea of biotechnology: additional 80 research institutions and 230 working groups
2. Introduction Lower Saxony as a gateway to Germany
2. Introduction Lower Saxony as a gateway to Germany
Life Sciences in Lower Saxony
Companies, universities and institutes within the fields of biomedical technology and biotechnology are spread out across Lower Saxony
However, they are particular concentrated around the agglomerations of Hannover, Göttingen and Braunschweig
2. Introduction Lower Saxony as a gateway to Germany
Life Sciences in Lower Saxony
Lower Saxony has special potential and unique features within:
Infection research Genome- and proteome based diagnostics Biomedical engineering Biomaterials, biotechnology Regenerative medicine Neurobiology Nutrition and agricultural biology
Denmark
5.5 m citizensNominal GDP per capita (2011): EUR 40,200Religion: Evangelical LutheranHead of state: Queen Margrethe IIHead of government: Prime Minister Helle Thorning SchmidtAnnual real GDP growth (2011): 1.0%Major Trading Partners: Germany, Sweden, the Netherlands, China, the United Kingdom, NorwayLanguages: Danish. 86 % of the Danes speak English, which is the predominant second language
3. Introduction Denmark as a gateway to Scandinavia
Denmark as a gateway to Scandinavia
Through the bridge to Sweden, Denmark has become a gateway to Scandinavia The region Malmø Copenhagen has become an important trade and service center of Northern Europe Øresund region Attractive test market: Use Denmark as a gateway to Scandinavia
Danish consumers are the fastest in the world to adopt new products Tech-savvy consumers Optimal market size Work culture that supports innovation
Scandinavia: A market nearby !
Source: Copenhagen Capacity 2008
3. Introduction Denmark as a gateway to Scandinavia
Scandinavian population
Attractive concentration of citizens 25 m consumers
Source: Copenhagen Capacity 2008
Country Population
Denmark 5.450.000
Copenhagen 1.831.000
Sweden 9.100.000
Stockholm 1.624.000
Norway 4.690.000
Oslo 763.000
Finland 5.280.000
Helsinki 551.000
3. Introduction Denmark as a gateway to Scandinavia
Source: http://www.faz.net August 2012
ConsistentlyTop-Ratings for Scandinavia growth with stability
3. Introduction Denmark as a gateway to Scandinavia
„Those who seek security, should go to
the North!“
(http://www.format.at, Bloomberg/Jochen Hahn, 24.07.2012)
Medicon Valley – one of Europe’s most successful Life Science Clusters
1997 2013
3. Introduction Denmark as a gateway to Scandinavia
Medicon Valley – a TOP Medtech Region in the Øresund Region
Cluster Facts
Population is approx. 3.6 mwith a work force of approx. 1.5 m people
Companies with R&D and/or production:Approx. 200 medtech companies, 150 biotech companies and 25 pharma-ceutical companies
Approx. 44,000 employees in the private life science sector 15 Clinical Research Organizations and 13 Contract Manufacturing Organization 12 Universities, 5 of which supply life science related educations 150,000 students and 10,000 scientists 7 Science parks with significant focus on Life Science
3. Introduction Denmark as a gateway to Scandinavia
Medicon Valley – a TOP Medtech Region
Your benefits in Medicon Valley
Highly skilled employees – crucial to knowledge based companies A well-established medtech, biotech and pharmaceutical industry Medicon Valley is a gateway to the Nordic medtech market Access to capital - finance your development from Medicon Valley Unique interplay between universities, hospitals and industry Excellent in combining different areas of technologies and competences Attractive environment for clinical trials and development with focus on user
involvement
3. Introduction Denmark as a gateway to Scandinavia
Further attractive general conditions in Denmark
TOP rankings in the last years within the ”Ease of Doing Business”
by the World Bank
Attractive general conditions: Easy to set up a business (and close down) High flexibility of the labour market and no dismissal protection Low labour costs Low corporate tax Low risk – low start-up costs (low equity) Etc.
Source: Copenhagen Capacity 2013
3. Introduction Denmark as a gateway to Scandinavia
Germany
– sixteen states
– sixteen “cultures”
Independent of your starting point – CULTURE matters:
4. Practical guidelines to successful internationalization
Scandinavia
– four countries
– four cultures
Example: The German Ice Berg vs. The Danish Ice Berg
High population density
Many citizens
History
Performance society
High competition
Highly specialized
Regional diversityMultiethnic state
Hard working
”Ordnung muss sein”
Punctuality
Perfection
Cleanliness
Thorough planning
Reliability
Central positionUrban structure
Low population density
Few citizens History
Welfare society
Outskirts
Relatively homogenous population
Easy goingTradition and modernity
Family orientation
The law of jante
Strong women
Openness towards new things
Humility is positive
Justice
All are equal(ly good)
Consensus “Laissez fair”
10%
4. Practical guidelines to successful internationalization
It is not just about explaining your product – it is about positioning and finding the right way into the market
New and foreign markets are foreign and different markets: Market size Health care systems Decision makers (centralized vs. decentralized) Reimbursement and financing systems Routines Customers Certificates and approvals Sales channels (distributors, own salesmen, etc.) Sales arguments
It is essential to gather local market information ! Find your local USP’s, that match to market conditions !
Successfully expanding to new markets
4. Practical guidelines to successful internationalization
Direct Sales Agent Distributor Joint Venture Strategic alliance Representing office Branch Subsidiary
Risk and investment increase Control and market knowledge increase
Your succeful market entry – the choice of market entry strategy
4. Practical guidelines to successful internationalization
Your succeful market entry
The choice of your individual market entry strategy should be dependent on:
+ Present market situation + Timing + Your individual situation+ Your company's export preparedness+ goal oriented planning= Differentiated market entry strategy
Market knowledge
Ma
rke
t co
mm
itme
nt
No regularexport activities
Export via independent
representatives
Establishment ofsales subsidiary
Production ormanufacturing
4. Practical guidelines to successful internationalization
Lina A/S •A medium-seized danish company that develops, produces and sells person lifts•After focusing on the Danish market they turned their gaze beyond the borders – towards Germany•A market analysis showed that it was an absolute requirement to be present in the market if a market penetration was to be guaranteed•Approval from the German Krankenkassen (health insurance companies) to reimburse the products•Sales via distributors and “Sänitätshäuser”/ “Orthopädiehäuser” (special medical supply stores)•Here patients were advised and counseled •The market strategy was first applied locally in Lower Saxony and later expanded to the whole of Germany
5. Practical cases
Anonymous Development and manufacturing of medical devices for aortic and peripheral vascular diseasesProduct portfolio includes conventional grafts and interventional implants for cardiovascular surgery, radiology and cardiologyFor many years the company followed the market strategy to use partnerships abroadSince the product required a lot of explanation it was very difficult to achieve the wanted market penetrationIn the end, the company terminated the partnerships and hired their own employees
5. Practical cases
De Koningh Medical SystemsDe Koningh Medical Systems develops high tech mechatronic instruments and systems for the medical marketThe company aspired to grow internationally and had several positive feedbacks from ScandinaviaA marked research was conducted to get a feeling about standards and recommendations about market entry modes in ScandinaviaDue to market size (25 mio. Inhabitants) and market conditions, the company got recommended to establish an own set-up on the marketThis was positively decided and as a first step, the company had to build up internal competences to secure a long term market entry
5. Practical cases
Vodisys Medical SoftwareA Dutch Company who produces a high dedicated medical software for hospitals and universitiesCompany is used to invest 5-6 years to get access into the first concrete customer-discussionsDuring the research on the Scandinavian Vodisys got in contact with 4-5 hospitals and universities first orders were already given on the first meetingA sales office was founded immediately in Denmark
"It was just because I was curious I came to the Chamber of Commerce to meet Sørensen, now it is serious business."
5. Practical cases
Polytech •POLYTECH Health & Aesthetics is a German manufacturer of soft-tissue silicone implants •One of the market leaders for silicone implants in Europe•POLYTECH’s products are used worldwide in more than 60 countries for reconstructive and aesthetic plastic surgery•Based on a market research the company find out that they had to work with high dedicated partners in the market•Sweden offered a unique market opportunity and a partner was found, who was able to further develop the market in Scandinavia
5. Practical cases
Conclusion
Be aware of local conditions: culture, market structure, pricing etc. knowledge is essentialThe choice of sales strategy in new markets is not always the same as in the home marketNew markets are more interested in the hands-on advantages that your product can provide in their system than in long technical descriptions find your local USP’s
5. Practical cases
Let us talk about your company‘s individual possibilities
We can also arrange a telephone/Skype meeting, in order to discuss your individual situation
Just get started !
1.6. Questions/ Discussion
Thank you for your attention!
SØRENSEN – Connecting Markets
Germany Denmark:Sørensen e.K. Connecting Markets GmbH Sørensen ApSPodbielskistr. 333 Nerongsallee 9 Centervej 2 ED- 30659 Hannover D- 24939 Flensburg DK- 6000 Kolding
Tel: +49 511 965 18 10 Tel.: +49 461 9049 3949 Tel.: +45 7634 4500E-mail: [email protected] [email protected] [email protected] Web: www.connecting-markets.com
Mr. Benny Egholm Sø[email protected]