Ms. Meyer, why is Korea an interesting market for Bioengineering AG?
The Korean market is growing extremely rapidly, above all in the pharmaceutical industry. For us as a supplier, Korea is the most important growth market in Asia after China. We began in Korea with the help of a distributor and have now decided to establish our own branch there.
Why the decision to start a branch – and how did you go about it?
We have major customers in Korea with running systems that need regular maintenance. Since the working relationship with our distributor had deteriorated, I turned to S-GE. The Korea specialists advised me to open a branch immediately and to proactively inform our customers about this. It all went extremely quickly from there: The Swiss Business Hub Korea in Seoul contacted potential partners, evaluated offices and warehouses – I went to five offices on site in just one day – hired a lawyer to set up the branch and an accounting company for operations and payroll accounting. In addition, S-GE supported the communication with our customers in Korea and conducted an analysis concerning a regulatory issue and on the subject of customs. We were impressed by the speed and were given efficient and expert support!
As CEO, how important is it to be present in Korea?
This is very important for the personal relationship. Our business is project driven and not always constant, but I am certainly on-site twice a year, and more often when we have ongoing projects.
How is the communication in Korea?
Communicating with business partners in Korea is a big challenge. Large, internationally active companies such as Samsung are attracting more and more young people who can communicate and speak English very well. But in traditional, owner-managed companies, language can be a big barrier. The technicians and operators in the service area did not study in America and speak poor English. The topic of language and communication was one reasons we became active in the market ourselves. With a distributor acting as an interpreter as well as mediator, you never know for sure if the message is really getting across.
Did you hire local or Swiss employees?
We work with Koreans. They are being supported by Swiss employees during the introductory phase, but it is our clear objective to work with local employees – precisely because of the language barrier. The branch is ultimately managed by the Head of Sales in Switzerland. The local management and sales team, on the other hand, is made up of Koreans.
Are there any parallels between Korea and Switzerland?
In my opinion, the parallels are the attention to detail and the quality standards, as well as a certain traditional attachment to your own country.
After China and Korea, what other markets do you have in mind?
At the moment we want to expand our presence in the existing markets. Russia is certainly an interesting market for us; even more so than Brazil, where the economy is currently less secure. The decision to enter a new market depends heavily on political developments, which we monitor closely.
Adjusting the Swiss mentality to an international pace is a major challenge, as is coming up with good ideas to stay one step ahead of the competition. Switzerland as a location continues to be strong – but it will only stay that way if we realize that we must move Forward.
Your business is subject to the standards of the pharmaceutical industry. Are you also experiencing local protectionist tendencies?
We are fortunate to operate in a highly regulated global sector. The demands of our end customers and the requirements of the authorities, such as the Food and Drug Administration FDA in the USA, are high. New requirements for imports in the markets are noticeable, but not a major obstacle for us.
