Munich Startup: Why did you choose Japan and South Korea as potential expansion markets?
Sebastian Raum: We are a Premium provider in the field of communication servicesLike us Germans, the Japanese and South Koreans place great value on quality and innovation. In this respect, these markets are fundamentally exciting for us. Moreover, these two markets, in which we currently have no presence, are the largest in the fax communication sector.
Munich Startup: Why should German startups consider Asia?
Sebastian Raum: The Asian market is certainly not easy for Europeans, as there are significant cultural differences. However, due to its enormous dynamism and great potential, entering the market is extremely exciting.
Great care in selecting the local partner
Munich Startup: 3 tips for startups considering expanding to Japan and/or South Korea?
Sebastian Raum: Try to understand the culture. Check the compatibility of your corporate culture with that of the market. Choose your local partner with great care.
Munich Startup: To what extent have programs like “Next Step,” which allow startups to discover and explore a potential new market in a very short time, helped you achieve your expansion goals?
Sebastian Raum: The German Accelerator "Market Discovery" program consists, on the one hand, of general presentations, e.g., on choosing a legal form, funding opportunities in the country, and business culture. On the other hand, it includes many individual discussions on product or company-specific issues that vary among the participating companies. Mentors are available for this purpose, taking the time to understand each company and then providing support with their experience. This is very helpful, as you can develop a plan for yourself and your company, which can then be compared with mentors with specific market experience.
Short meetings instead of weekly exchanges
Munich Startup: How are you doing with virtual working?
Sebastian Raum: At the beginning of the coronavirus crisis, we at Retarus were already well-equipped technically to switch to virtual working on an ad hoc basis. Due to Retarus' international teams, many departments have been working virtually for a long time. Therefore, switching to a fully virtual environment wasn't a big step for us, and in our experience, virtual working at Retarus has had no discernible impact on performance and success.
However, onboarding new employees is a particular challenge. What have we changed to ensure success even virtually? Daily short virtual meetings with the entire department instead of a weekly face-to-face exchange. Since chatting around the coffee machine is missing, we've introduced socializing opportunities in addition to work meetings: twice-daily global sports sessions with a personal trainer, as well as coffee meetings that bring new colleagues together with existing teams. Regular mail is sent home to all employees worldwide (postcards, gifts). Regular virtual meetings with all employees worldwide in various formats (general assembly, jam session, Christmas party). This is very time-consuming, so we work with dubbing interpreters, among other things.
Munich Startup: And what was your experience participating in a completely virtual accelerator program without being able to spend time on-site?
Sebastian Raum: In the accelerator program, this also ran perfectly from a technical perspective. It was a shame that there was no way to actually get to know the other participating companies, and thus no mutual synergies could be leveraged. And of course, the "local flavor" and on-site experience are missing when everything is done virtually.
What are your next steps in terms of internationalization?
Sebastian Raum: Based on the insights gained, we will begin scanning the market for potential partners. Based on our experience in other Asian markets (Singapore, Malaysia, Thailand), we will only enter the market with local partners. We believe that careful screening and a thorough alignment of interests are crucial to success.
Further information on Japan and South Korea can be found in our Going Global series
