conquering foreign markets - the german and the scandinavian medtech markets" webinar...

“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


Our Services

Coaching & Strategiy development

Market research

Partnering

Assistance with own set-up


Selection of Life Science reference projects


Selection of public cooperation partners – Germany


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


Selection of public cooperation partners – Denmark


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



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




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



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


Scandinavian population

Attractive concentration of citizens 25 m consumers


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


Source: http://www.faz.net August 2012

ConsistentlyTop-Ratings for Scandinavia growth with stability


„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


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


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


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.



Germany

– sixteen states

– sixteen “cultures”

Independent of your starting point – CULTURE matters:


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%


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


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


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


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]

conquering foreign markets - the german and the scandinavian medtech markets" webinar...

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