Transcript www.in2lifesciences.eu

“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
20th June 2013
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
1. Short presentation SØRENSEN – Connecting Markets
Our Organisation
SØRENSEN
ApS
Sales,
Marketing,
lead-generation DK
SØRENSEN
e.K
Sales,
Marketing,
lead-generation DE
Connecting
Markets
GmbH
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
Selection of public cooperation
partners – Germany
• IHK Braunschweig
• IHK Stade
• IHK zu Hannover
• IHK Lüneburg-Wolfsburg
• IHK Osnabrück-Emsland
• IHK Oldenburg
36
• IHK zu Münster
• IHK Rostock
• IHK Berlin
• IHK Essen
•
IHK Köln
•
IHK Kassel
•
Etc.
1. Short presentation SØRENSEN – Connecting Markets
Selection of public cooperation partners – Denmark
2. Introduction Lower Saxony as a gateway to Germany
Germany
 82 m citizens
 Nominal GDP per capita (2012): EUR 32,276
 Main religion: Christianity, 30% Catholics
(South+West), 29,9% Protestants (North+East)
 Head of state: Federal president Joachim Gauck
 Head of government: Federal chancellor Angela
Merkel
 Annual real GDP growth (2012): 0,7%
 Major Trading Partners: France, the United
Kingdom, the Netherlands, the United States and
China
 Languages: 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 citizens
 Regional differences between
North, East, West and South
Federal 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
2. Introduction Lower Saxony as a gateway to Germany
Lower Saxony – a gateway to Germany and a gateway to Europe
An industrial location with a great future
The second-largest German federal state
The fourth-largest population (approx. 8 m)
Geographical location in the heart of the European Union
Exceptional 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
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 automotive supply industry
- The chemical industry
- The agricultural and food industry
- Solar and wind energy generation
- The life science and medical sectors
- The maritime industry
- The steel industry
- The aviation industry
- Machine-building
- The healthcare industry
- The insurance and tourism branches
2. Introduction Lower Saxony as a gateway to Germany
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 facilities
 Area of life science: 18 universities and technical colleges
 Area of biotechnology: additional 80 research institutions and 230 working groups
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
3. Introduction Denmark as a gateway to Scandinavia
Denmark
 5.5 m citizens
 Nominal GDP per capita (2011): EUR
40,200
 Religion: Evangelical Lutheran
 Head of state: Queen Margrethe II
 Head of government: Prime Minister Helle
Thorning Schmidt
 Annual real GDP growth (2011): 1.0%
 Major Trading Partners: Germany, Sweden,
the Netherlands, China, the United
Kingdom, Norway
 Languages: 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
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: Copenhagen Capacity
2008
3. Introduction Denmark as a gateway to Scandinavia
ConsistentlyTop-Ratings for Scandinavia  growth with stability
Source: http://www.faz.net August 2012
3. Introduction Denmark as a gateway to Scandinavia
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
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Population is approx. 3.6 m
with 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 pharmaceutical 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

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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
4. Practical guidelines to successful internationalization
Independent of your starting point – CULTURE matters:
Germany
Scandinavia
– sixteen states
– four countries
– sixteen “cultures”
– four cultures
4. Practical guidelines to successful internationalization
Example: The German Ice Berg
vs.
The Danish Ice Berg
History
Low population density
Performance society
High population density
Highly specialized
Many citizens
Central position
Urban structure
High competition
Regional diversity
Multiethnic state
Relatively homogenous population
10%
Few citizens
Cleanliness
Reliability
Punctuality
Thorough planning
Outskirts
Tradition and modernity
The law of jante
Family orientation
Humility is positive
Perfection
History
Easy going
”Ordnung muss sein”
Hard working
Welfare society
Justice
Consensus
All are equal(ly good)
Strong women
Openness towards new things
“Laissez fair”
4. Practical guidelines to successful internationalization
Successfully expanding to new markets
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 !
4. Practical guidelines to successful internationalization
Your succeful market entry – the choice of market entry strategy
 Direct Sales
 Agent
 Distributor
 Risk and investment increase
 Control and market knowledge increase
 Joint Venture
 Strategic alliance
 Representing office
 Branch
 Subsidiary
4. Practical guidelines to successful internationalization
Market commitment
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
Production or
manufacturing
Establishment of
sales subsidiary
Export via
independent
representatives
No regular
export activities
Market knowledge
5. Practical cases
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
diseases
 Product portfolio includes conventional grafts and interventional implants for
cardiovascular surgery, radiology and cardiology
 For many years the company followed the market strategy to use partnerships abroad
 Since the product required a lot of explanation it was very difficult to achieve the wanted
market penetration
 In the end, the company terminated the partnerships and hired their own employees
5. Practical cases
De Koningh Medical Systems
De Koningh Medical Systems develops high tech mechatronic instruments and systems for
the medical market
The company aspired to grow internationally and had several positive feedbacks from
Scandinavia
A marked research was conducted to get a feeling about standards and recommendations
about market entry modes in Scandinavia
Due to market size (25 mio. Inhabitants) and market conditions, the company got
recommended to establish an own set-up on the market
This 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 Software
A Dutch Company who produces a high dedicated medical software for hospitals and
universities
Company is used to invest 5-6 years to get access into the first concrete customerdiscussions
During the research on the Scandinavian Vodisys got in contact with 4-5 hospitals and
universities  first orders were already given on the first meeting
A 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 essential
The choice of sales strategy in new markets is not always the same as in the home
market
New 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
1.6. Questions/ Discussion
Just get started !
Let us talk about your company‘s individual possibilities
We can also arrange a telephone/Skype meeting, in order to discuss your
individual situation
Thank you for your attention!
SØRENSEN – Connecting Markets
Germany
Sørensen e.K.
Podbielskistr. 333
D- 30659 Hannover
Connecting Markets GmbH
Nerongsallee 9
D- 24939 Flensburg
Denmark:
Sørensen ApS
Centervej 2 E
DK- 6000 Kolding
Tel: +49 511 965 18 10
Tel.: +49 461 9049 3949
Tel.: +45 7634 4500
E-mail: [email protected]
Web: www.connecting-markets.com
[email protected]
[email protected]
Mr. Benny Egholm Sørensen
[email protected]