Neofect's European German Branch B2B Sales Booming... "Expanding Overseas Achievements Despite COVID-19"

[Asia Economy Reporter Yoo Hyun-seok] NeoFect, an innovative medical solutions company, announced on the 17th that it will strengthen its B2B sales at its German subsidiary this year to intensify its penetration into the European rehabilitation medical market.

NeoFect's German subsidiary expanded its B2B sales mainly targeting small and medium-sized medical clinics, recording sales of 890,256 euros (approximately 1.2 billion KRW), doubling compared to the previous year in 2020. Although sales were affected due to difficulties in face-to-face sales starting from the second quarter of last year because of COVID-19, the company explained that sales began to recover from the second half of the year.

In particular, in December last year alone, monthly sales reached 162,107 euros (approximately 220 million KRW), achieving nearly 20% of the annual sales. In January and February this year, including confirmed orders, the company achieved nearly 40% of last year’s annual sales within just two months.

This year, the goal is to double sales compared to last year by expanding the sales team and improving profitability. The company also expects to broaden its customer base through sales of new products such as the Smart Balance, in addition to the Smart Glove and Smart Pegboard.

A NeoFect official stated, “The German subsidiary’s sales were impacted by the initial COVID-19 shutdown last year, which made visits to medical clinics and sales impossible, but from the second half of the year, we strengthened B2B sales targeting small and medium-sized rehabilitation hospitals and entered a recovery phase in sales. Although there are still business difficulties such as postponed face-to-face meetings, we are expanding marketing through various channels.”

He added, “We plan to apply for the Digital Health Application system (DiGA) supported by the German government so that patients can use our products with 100% insurance coverage in the future. We will explore new opportunities in the B2C market and, considering the COVID-19 situation, will directly sell not only in Germany but also in Austria, Switzerland, and France,” he emphasized.