Case study - IBA Lifesciences

Introduction

IBA Lifesciences is a German biotech SME manufacturing products for life science research in both academia and industry. The company has created the Strep-tag® system, which enables cloning, expression, detection, purification, immobilization and further analysis of recombinant proteins. Headquartered in Göttingen, Germany, the company has established a global network of distributors spanning over 40 countries across 5 continents. 

Why Japan 

IBA's strategic expansion into Japan began nearly two decades ago, with the company forging its first partnerships with Japanese distributors in 2004. Recognizing Japan's leading biotechnology sector, IBA positioned itself to meet the country's growing demand for cutting-edge products. The nation’s high consumer purchasing power, coupled with a strong emphasis on quality, made it an ideal market target for the German company.  

Support by the EU-Japan Centre 

Since being selected for the 2018 Biotech mission managed by the EU-Japan Centre, the company saw significant positive impacts from its participation. Mr. Bertram, the Managing Director, recalls the various benefits it brought.  

To begin with, the mission facilitated face-to-face meetings with representatives from the company’s Japanese distributors such as Nacalai, Cosmo Bio and Funakoshi.  

Mr. Bertram states that :”Personal interactions often lead to better mutual understanding and trust, which is crucial for long-term partnerships”.  

Additionally, the IBA MD adds that :”the mission was followed by intensive interactions through webinars on new products, and technical training of the sales representatives belonging to our distributors. These activities, particularly the technical trainings, increasing confidence in the promotion of IBAs products, lead to increased sales and customer satisfaction.” 

Furthermore, the company had the opportunity to set up meetings with business development representatives and university professors in the cities of Kyoto, Tokyo, and Kobe. 

Challenges and competition in the Japanese market 

IBA Lifesciences specializes in Strep-tag®/StrepTactin® technology, offering high-affinity protein purification suitable for various proteins, including low-abundant and challenging ones. What this story suggests is that finding a niche -and untapped- sector can make it easier to emerge in such a competitive market. 

Due to Japanese customers' preference for domestic companies, with which they have familiarity, it's essential to identify distributors with compatible technology and a product portfolio to ensure optimal visibility and effective advertising. 

Establishing a partnership with a distributor overcomes a crucial obstacle, which is to have a direct contact with the customers. Additionally, this direct contact provides valuable feedback on market needs and product performance, which in turns offsets a continuous improvement cycle, which is essential for staying competitive. 

Future expectations 

The Göttingen-based company expects to further expand its business and market share. Following the participation in the 2018 Biotech mission, the extent of business dealings with Japanese counterparts has been continuously growing. While keeping its main focus on Japan, the company is looking to establish itself in other key Asian markets. This broader regional focus aims to capture the growth in the region’s emerging lifescience and biopharma markets. 

Advice to European companies 

Having a local partner definitely helps. It is a good strategy to pursue in order to establish first contact with customers who are not aware and familiar with European SMEs. A trustful and reliable Japanese partner will ease the initial market entry. 

On top of this, having a good command of Japanese business culture is also a valuable skill to possess. For example, respect for hierarchy or consensus in decision-making. Japanese companies typically make decisions by consensus, which can lead to longer decision-making periods. Patience and persistence are key in navigating this process. Establishing trust and long-term relationships is fundamental in Japan. Personal interactions, consistent communication, and demonstrating reliability are essential to gain the trust of Japanese customers and partners. It is important to tailor the marketing strategies and communication to fit the Japanese market. This may involve translation of materials into Japanese, understanding local consumer behavior, and aligning with cultural preferences. 

Moreover, engaging in industry events, trade shows, and missions such as those managed by the EU-Japan Centre, can provide valuable exposure and networking opportunities.  

Text based on an interview with Mr. Joachim Bertram, Managing Director of IBA Lifesciences and participant to the 2018 Biotech mission. 

Published in July 2024.