Optimizing growth in a multinational biotech firm in Korea
With almost twenty years’ experience working across #Asia, Christian Groeger, President and CEO of Eppendorf Korea, talks with Alex about the opportunities of working in a high growth market as well as the unique challenges that his Company Eppendorf Korea faces to become a more #sustainable company, while maintaining the highest possible quality standards.
There is no doubt that the #biotech scene in Korea is a hotspot in the economy. Tipped to become a $10 billion dollar industry, it is made up of established Korean firms, small hungry #startups, and a scattering of #multinationals, all vying for a place in an intensely competitive market.
Christian and Alex discuss how Eppendorf has grown since he established in Korea in 2012. Prior to that the company worked with a general distributor. Christian arrived already knowing Korea quite well, but a relative #newcomer to the industry. He has grown his business and his team to now a thriving concern.
One of the key takeaways from this interview is getting Christian’s view on the people he is looking for in his team. He advises that younger people get as much practical experience as they can in leadership, sales and marketing so that they can offer something more than a sparkling GPA to his team.
Today’s episode is brought to you by The Four Seasons Hotel Seoul. Stylish elegance in the very heart of the city
Optimizing growth in a multinational biotech firm in Korea
Alex Jensen: It’s Tuesday, November 30th. You’re listening to Koreabizcast with the KBLA. I’m your host, Alex Jensen, a quick announcement that you can now listen to us via Apple podcasts if you haven’t already stumbled across that development. So please spread the word as we add more and more podcast platforms where you can find us just by searching Koreabizcast all one word. Now it feels like the pharmaceutical industry is rising rapidly here in Korea. And that’s because it really is the total value of local biotech and pharma companies tech exports is set to reach 10 billion US dollars for the first time this year, according to the Korea Pharmaceutical and Biopharma Manufacturers Association. So, what’s it like to lead a foreign firm here in this field? Find out shortly, as this episode is brought to you by the Four Seasons Hotel Seoul, stylish elegance in the very heart of the city.
Alex Jensen: So, amid the rapid emergence of Korean pharmaceutical and biotech companies worldwide, related global players are still making inroads here at home. Christian Groeger is Managing Director, or should I say President and CEO officially of Eppendorf Korea, a leading life science company that develops and sells instruments consumables and services for liquid sample and sell handling in laboratories worldwide. Christian, thank you so much for joining us.
Christian Groeger: Yeah, pleasure to be here. Thank you very much for the opportunity, Alex.
Alex Jensen: And President and CEO is the official title. But you often see other descriptions like Managing Director and Country Manager, I guess, it all refers to you running the show over here, does it?
Christian Groeger: Well, yes and no, I mean, I am the company representative and the director here. And in Korean, I might have, would be Sajang. But actually, we do have a matrix organization within our company which means that on a regional basis and in our context that is Asia Pacific wide. We share line responsibilities, for example, for service, for marketing and other things with regional heads. And I have the local double responsibilities so to say, I am on one side, I’m the Head of Sales for all Korean business. And on the other side, I’m the Managing Director, corporate representative. So also, I have the dotted line responsibility for functions like service, marketing, business operations, etc.
Alex Jensen: Just to put this in context, and to better understand Eppendorf global business, where does Korea fit in as a market size, for example?
Christian Groeger: Yes, Korea is one of the fastest growing markets worldwide for Eppendorf. And in the global context view around 1.5% of total sales worldwide, I would say. But yeah, growing on that, traditionally, because we are a German company. We have a very strong base, obviously, in Germany, and in Germany, but also in the US and China. So, these three are the three single biggest markets for us. But apart from that, in the rest of Asia, we are currently a little bit behind Japan and India but not by that much. So, I think we are just close number three to India, which is, I think, a considerable achievement here in its own right, and it speaks of the size of the Korean market and the maturity of the market as well.
Alex Jensen: And when we talk about leading life science company developing selling instruments, consumables and services, as I described before, for liquid sample and cell handling. Is there any specific area within that, for example, we’ve heard a lot about diagnostics, I’m sure in recent years, we’ve heard a lot about experimentation vaccines, or I mean, any number of laboratory testing that could be going on, but perhaps you could better explain to us what Eppendorf focuses on?
Christian Groeger: Yeah, so our philosophy basically is that we are a general lap product and service provider, meaning that our focus is not so much on analytic instruments or specific diagnostic workflows, but it’s more on the general applications which you will find in every lab. So, our biggest and most important product groups, what Eppendorf is generally known for across all laboratories is pipettes and consumables as well as centrifuges. So, the that’s, that’s basically tools that every lab researcher will use basically on a daily basis for almost all the applications and workflows, there is at some point, you will have to prepare a sample to set that up and you do that with plastic wares in plates or in single test tubes, and that is what we are producing. The next step would be, you have to move these samples from point A to point B or you have to mix them up with other ingredients to prepare them for the next step and your protocol etc. So that’s what you use a pipette for, to aspirate to mix those liquids, those samples. And then also important steps, usually always involved is centrifugation separation of that sample. If you have, for example, genetic material that you want to extract, you need to use centrifugation to separate this from the other parts of the liquid. So, they’re usually dissolve them or to mix it up back together again in other works steps. So, this kind of instruments is what we’re doing, and the plastic wares you need for that as well in the steps in between. That is basically what we cover in a broad set.
Alex Jensen: Just at the end of last week, we had this interesting conversation going quite deep into sustainability and sustainable brands, materials used for laboratory equipment. Can you tell us how you’re having to change with the times and whether that’s particularly challenging when you’re also talking about equipment that has to be durable and safe in that environment?
Christian Groeger: Yes, yeah, it is indeed a challenge. I mean, first of all I think we have generally a reputation for having quite durable products which is a blessing but having it’s also for the company, it’s a bit of an issue, because we don’t have for example, planned obsolescence and such things. We really are known for building quality products best in class. So that’s our aim. But over the years, of course, yeah, we had, we were trying to switch to better solutions more economical and environment friendly solutions. As an example, we, for example, built the minus 80 degrees freezers, ultra-low temperature freezers which are currently in high demand because you may know that the Pfizer, Pfizer BioNTech vaccines or other vaccines are especially AstraZeneca in the beginning, they had to be stored at minus 80 and other vaccines as well they are stored either, minus 20, minus 50, minus 80 degrees. So, in the lab you would use that freezes and our freezers are generally the most energy efficient in class as well as environmental friendly, we have switched now all to green refrigerants meaning that they use no or less hydro flow carbonates which already banned in general consumer use but for those specialty industry freezers, these has been still in general use until a few years ago but we were one of the first to do that switch as well. In other products, it is also a bit more challenging. I was talking about these plastic wares which you use in the lab, the test tubes plates, but also the tips on front of the pipettes which you use to work your samples with. And we are looking into ways to also be more environment friendly with these the big challenge of course, but that is that we need on the first place. The products need to be extremely high quality and purity because we cannot have any, we do not use any leachable for example, or any plasticizers which would, or which could actually give you a wrong result in analysis and would lead to contamination. So, the raw materials have to be extremely high quality. And on the other side once they are used, it’s very difficult to recycle those. We’ve looked into that. But yeah, the first problem is that a lot of the use plastic ware is then biohazard or chemical hazard materials which, by definition have to be burned. But even for those which aren’t, it’s very difficult to recycle these in a way to get back to usable, raw material. But yeah, that’s I mean, in general, these are things which are very important to us, sustainability in general, not only on the products, but it’s a very important topic for Eppendorf group, our management board in Germany is personally taking different aspects of sustainability as their core projects as a personal project. So, I was mentioning with the products, that is one focus, but we also do that within our supply chain. Of course, we do that in terms of corporate social responsibility as well as internally in the company.
Alex Jensen: Let’s also talk a little bit about the company’s the partners, the clients that you deal with here in Korea. And can you tell us how you’re looking to develop those relationships?
Christian Groeger: Yeah, so our customers are in various fields, basically, anybody who has a laboratory, and in the laboratory, you work. For example, with organic materials or in some cases, even with inorganic materials who would potentially be our customer. The most typical of the biggest market segments that we focus on, is the pharmaceutical industry as well as biotech companies in various fields also pharma related but also in for example, food, feed beverage, alternative fuels, cosmetics, etc. So, these particular these two fields in this industry fields, we’ve seen a tremendous growth in the past years in Korea, and there has also benefited Eppendorf Korea. So, we were able to grow with that in Korea. But there are also other segments or markets traditionally, and but that I mean, Eppendorf was started in 1945. So, we are in the life science field pretty much a very modern on and a very old company. And traditionally, we came from the roots are very strong, strongly associated with wealth in academia and in government institutes. So also in Korea, this is pretty important part of our business, the regulatory bodies as well. And, of course, also the diagnostics, you mentioned that and hospitals. Yeah.
Alex Jensen: Yes. I mean, I also wanted to ask about the size of the companies because the startup scene seems to be pretty interesting, the area of biotech. What kind of new products or services are you looking for and is there an opportunity for Korean biotech startups to work with you? And, again, if so, how would they approach you?
Christian Groeger: Yeah, I mean, from our customer base, we see a lot of dynamic in the biotech sector. Yes. And we also see that funding, in general seems to be improving a bit. So, there’s more waste for financing of startup biotech companies. That is a contributor to the growth of the sector. Various IPOs, of course, just very recently and over the past two years in increasing numbers but aside from that, also, startup fund, venture capital funding and other ways of financing seem to be more readily available which is a good thing, and I think it shows that the entire market and in biotech sector is maturing in Korea. But yeah, for cooperation with Eppendorf as a customer would be one thing but possibly, I think we see also other ways to cooperate in showcase projects, for example, or we see as well that even the manufacturers here of lab were becoming increasingly better. So, we are taking a big interest also in other companies in the market here in Korea. Eppendorf isn’t, it’s not a company that does a lot of M&A. But yeah, it’s an interesting market for us.
Alex Jensen: There is one particular company that comes up when we look at the history with HANDOK. And this apparent connection between German and Korean biotech companies. And when you talk about yourselves as a behemoth, I guess there are some more established players that you’ve had a long relationship with?
Christian Groeger: That’s right. As you mentioned, HANDOK. The name Eppendorf and HANDOK is, has a long history in Korea. In fact, HANDOK was our licensed general distributor for Korea since 1982. So even though us as a company we started in 2012, to the first 30 years on the market. HANDOK or HANDOK pharmaceutical at that time, was our distributor and established here, a network of sales and distribution sales as well, as well as service marketing. So that was a great help for us as a company to prepare the market. And also, when Eppendorf Korea was established in 2012, we actually had very close cooperation and help from a HANDOK and even took over some of the core stuff that was working in the field with Eppendorf into the new company. That was a tremendous help at the beginning to get us ready and hit the ground running. So, we are still very closely connected. In fact, HANDOK is still our single biggest business partner in Korea, and especially in the Seoul, in the greater Seoul, Sudogwon area. They, we work very closely with them together. So that’s been a very big part in our history and continues to be also to this day, a very important part of our business.
Alex Jensen: I’d like to hear also a bit more about your personal Korea connection. Like how did you get started here, for example? And what drove that decision for you?
Christian Groeger: Yeah, well, actually, I’m a bit of an outlier in that I am not a biologist which would be the majority of Eppendorf Korea of my colleagues here and even in our headquarters, the typical background, which is also now changing a bit more, we want to get a bit more diverse and incorporate different perspectives. So, my background actually is in regional sciences, I’m in fact, I studied, Chinese studies and as well as Japanese Studies. And then, as life would have it, I met my then girlfriend, Korean girlfriend which is now my wife. So, then I also started to take an interest in Korea and study the language a bit. But the connection with Eppendorf actually came from my time about 15 years ago, I was a management consultant in China in Shanghai. And I was working with Eppendorf China at that time to develop their sales concept and sales training for the organization back then. And I have maintained that connection over the years. And then in 2012 when the office was established here in Korea, I was, yeah, I was asked to consider this position and I knowing Eppendorf from back then I saw that it’s a really great opportunity and an excellent company. So it was in retrospect, also, exactly the right decision to come here.
Alex Jensen: So, you’ve been enjoying life in Korea. Have you personally?
Christian Groeger: Oh, yes. I mean, it’s a great country. I’ve been visiting Korea on and off. I’ve been living in Asia before in Japan as well as in China for a number of years and through my family background, and I had also visited, frequent visits to Korea even before I was living here. So, I think that was also part of the reason that I had the chance to get into this job because I had these personal relations, and I was familiar to a degree with the country. It still was a challenge to come here, as it is for every new country, but I think, also within Asia for Europeans, it’s a great country to be here and if you have experience in other Asian countries, in particular, in China or in Southeast Asia, then Korea will be a lot easier or a lot more familiar to watch what you may be used to in America or in the in Europe.
Alex Jensen: What advice would you give to other people looking to follow in the footsteps that you’ve walked? Even if your example is not typical, as you described before.
Christian Groeger: Yeah, I think it’s, I mean, I have, if I look back in my life, I think I was I did the right choices. But I was also lucky. So that plays a part in that clearly from my point of view, but you also have to make your own luck, meaning, you have to work on creating opportunities to open up potential for yourself and for your future development. And, for example, as I mentioned, I was working as a managing management consultant. So that gave me exposure and insights into different industries to get to know various companies in and the business culture and the challenges they face, etc., which was really a great way to pick up practical knowledge. I see that, for example, here in Korea, if I look at our company, I mean, we are a fast-growing company, we started with around 12, 13 people 10 years ago, and now around 50. So, we grew up the growth was four times in size and when we employ new people, especially if it’s younger people, I see a lot that they oftentimes lack practical skills required for the job. So, I think that is really something that is that I would recommend to everybody try to gain practical experience. And if you’re not exactly sure on what yet, try to lay out these the scope or the width of this experience as wide as possible that you can see and learn different things. It’s always, it’s never a waste if, even if you have learned of some things, you may not be interesting, at least then, you know that or of experiences that you may not see as beneficial in the end that helps also as a counter example to what you may be looking for. So, I think it’s really irrelevant to try to get practical skills get experiences through internships, for example, or try to get other insights into what it is working like, what the actual work life, sorry, work. And inside perspective of companies or an industry is because a lot of times I see people who are especially fresh or relatively new and their jobs from university, they struggle with this, this a step from going in academia, academic environment into a corporate environment. Similarly, if you are an act in an expert situation, if you go into a new country try to get exposure beforehand, like I said, I think South Korea is a, it’s a great country. And if like myself, I have a lot of experience living in different places in Asia, traveling in different places as well but also living. If you don’t have such experience, I think your initial perspective or your experiences in Korea might be a bit different and more difficult. If you do have some experiences even business traveling but in the best case a short time to live in a in an Asian country that would be really a great help to prepare you for a longest stint in Korea or for the matter of fact in another country in Asia or worldwide even.
Alex Jensen: And coming back to yourself, what are your own plans for the future and what do you see as being some of the biggest opportunities and or challenges?
Christian Groeger: You will like I mentioned, I mean, our company’s been on a really strong growth path and it’s still continuing to grow. Especially in the context of the current pandemic which actually, I mean, a lot of the research which is going on and even the diagnostics around that is directly related to our business. So that really led to a strong growth in demand and our business has been growing a lot over the past two years, especially. But even before that, it was, was a pretty fast growth. And that’s, I think that was especially it was a lot of challenges but also, the, what made it interesting. Basically, like I said, 12 years, 10 years ago, we started to like a startup company. And now we are a lot more mature and I’m sure that this development for us here locally, but even for Eppendorf, as the Eppendorf group, in total will continue and will offer a lot of new opportunities and interesting ways to develop further, yeah. So, I’m still I like it in Korea. I’m very, I like my job and the industry and the colleagues, the environment, the team I have here, which really has enabled us to take this strong growth. And, you know, we, I’m really happy and proud to have all the support here locally as well as from the company globally which I think we’ll, I will continue here for the time being but also on the longer perspective, I think the life science industry in general is one with tremendous future potential.
Alex Jensen: Excellent, really great catching up with you. Wish you all the best for the future.
Christian Groeger: Yeah, great. Thank you. All the best.
Alex Jensen: Christian Groeger, President and CEO of Eppendorf Korea. Thanks also to the Four Seasons Hotel Seoul for making today’s episode possible. And if you want to find us to suggest your own story, one of the best ways is via LinkedIn just search KBLA and see you again tomorrow.