How Wontech Is Scaling Korea’s Aesthetic Revolution With OligioX

In developed markets, especially those of Japan, USA and EU, medical organisations and practitioners are reputed for being conservative, and changing suppliers or adopting new technologies for medical procedures is a difficult challenge to overcome for new products and companies. How are you working to overcome this barrier? To what extent can we consider that this challenge is a matter of reputation vs a matter of technology?

Our recent success in Korea comes down to a few key ingredients that really make a difference. Firstly, we benefit from a robust manufacturing ecosystem, with access to parts and components sourced from nearby countries and talented engineers. This allows us to swiftly manage all aspects of production in-house. And this agility is invaluable.

Secondly, we have some of the most proactive doctors in the world. They eagerly explore how to best utilize our equipment, pushing the boundaries of innovation and efficiency in medical practice.

Lastly, we are fortunate to have proactive patients who actively research treatments online before visiting clinics. This combination of manufacturers, doctors, and patients working in tandem has greatly accelerated our development, a scenario not always replicated elsewhere. For example, when we reached out to a renowned dermatologist in Switzerland, known as one of the most respected and famous doctors in Europe, the pace of adoption was notably slower. In contrast, clinics in Korea typically see between 50 to 100 patients daily, providing us with a wealth of data for analysis and refinement.

I've found that Korean doctors exhibit a strong business acumen. When introduced to our technology, they adeptly integrate it with other treatments like fillers and botox to maximize efficacy. Initially, we viewed this integration as a potential threat, but it has actually fostered collaboration and industry growth. This collaborative mindset has been instrumental in Korea's success. To expand internationally, we aim to replicate this model in other countries, though it poses its own set of challenges.

From your experience and track record overseas, what are the challenges you face in educating patients and practitioners in markets like Europe, Japan, and the US?

We approach this challenge from two angles: educating doctors and informing patients. Since our company's inception, we've been engaging with medical professionals by participating in conferences, collaborating with key opinion leaders, and providing our equipment for trial and endorsement. However, what we've recently realized, particularly with our experience introducing Oligio, is the significance of the business aspect. Clinics are, after all, businesses, and market dynamics vary greatly from one country to another.

For instance, in Seoul, where clinics are densely concentrated, competition is fierce, and patient traffic is high. This concentration facilitates rapid adoption and feedback loops. Conversely, in places like California, where clinics are spread out across vast distances, the pace is slower, and practitioners tend to be more conservative.

In Bangkok, a city with a similar clinic density to Seoul, our strategies closely mirror those employed in Korea, yielding comparable results. However, in Japan, where conservatism is prevalent among doctors, building trust and reputation demands extensive time and effort. we have established an office in Japan. Our team there echoes sentiments about the conservative nature of Japanese doctors, emphasizing the necessity of investing substantial time and effort to cultivate relationships and build reputation. A process that can be lengthy.

Similarly, in Korea, we encounter comparable challenges due to a cultural inclination towards favoring products from more established markets such as the US and Europe, a phenomenon often referred to as "toadyism." However, we've observed a generational shift among younger doctors who are less swayed by origins and more focused on practical considerations like return on investment.

Interestingly, our sales predominantly stem from newly established clinics led by doctors in their 30s and 40s, who, burdened by substantial debts from education and clinic setup, prioritize financial viability over brand prestige. For them, effective advertising and patient response are critical factors influencing their purchasing decisions.

An illustrative example of our marketing approach is the launch of Oligio in 2020, where we took a pioneering step by directly targeting consumers through various advertising channels, leveraging the endorsement of a Korean celebrity as our brand ambassador. This consumer-focused strategy proved instrumental in influencing patient decisions and generating interest among doctors.

In essence, our strategy revolves around targeting younger doctors and clinics catering to younger patients, recognizing their receptiveness to innovative technologies and their focus on tangible benefits. We believe this approach holds promise not only in Japan but also in Europe and the US, where similar trends may exist among the younger medical community.

Among the three regions mentioned, Japan, the USA, and Europe, we see Japan as the ideal testing ground for this strategy due to its unique market dynamics. However, we also recognize the importance of adapting our approach to suit each region's specific characteristics.

Thailand, owing to its similarities with Korea in terms of clinic density and market dynamics, presents an opportunity to replicate our successful strategies. Additionally, we aim to explore the feasibility of consumer marketing in Japan, a venture we plan to undertake in the coming year.

Korea’s status as a hotbed of innovation in new treatments. Patients here have access to a vast array of minimally invasive procedures, ranging from PDO threads to microneedling. From your personal perspective, which new treatments excite you the most? What do you envision as the evolution of minimally invasive treatments over the next five years?

It's challenging to foresee any groundbreaking new treatments emerging in the near future. Consider HIFU, which has been around since the early 2010s, or Monopolar RF, with an even longer history. The current landscape primarily features refinements of existing technologies rather than entirely novel innovations. Or again, while PDO threads and needling may be relatively recent additions, they've also been present for some time now. Most products in this sector are quite mature, and I don't anticipate any revolutionary technologies entering the aesthetic medical market anytime soon.

The trend in anti-aging treatments is leaning towards energy-based solutions, particularly high-fluence RF, which is likely to remain predominant for the foreseeable future. Despite the availability of minimally invasive options like PDO threads, fillers, and botox, which are relatively painless, they still involve needle insertion or puncturing the skin with threads. Conversely, high-fluence RF, while it may cause minimal discomfort, Oligio, for instance, is virtually painless, allows patients to undergo treatments during their lunch break or after work, seamlessly integrating into their daily routine while maintaining a youthful appearance without obvious signs of treatment. I believe energy-based devices (EBD) are poised to dominate the market in the coming years.

Our focus lies in leveraging existing technologies to introduce new and compelling offerings. Take, for example, Oligio KISS, which combines HIFU and RF in a single device. While it may not seem groundbreaking, it simplifies the purchasing process for doctors, who prefer convenience and efficiency. Simplifying treatment sessions by consolidating multiple procedures into one enhances patient experience and streamlines clinic operations.

From a business perspective, doctors aren't always seeking entirely new technologies; often, they prioritize new brands to attract patients. For instance, while Oligio has been the most popular treatment for the past few years, active patients may seek variety. Thus, even if it employs similar technology, introducing a new brand can rejuvenate interest among doctors and patients alike. Our mission over the last two decades has been to pioneer cutting-edge technology. However, we've learned that doctors prioritize fresh brands over entirely new technologies. I often liken our business to selling cars to drivers versus Uber drivers who purchase cars as a means of earning income. Similarly, doctors view medical equipment as investments to generate revenue, underscoring the importance of branding and market positioning for us.

Looking at your portfolio, you mentioned upgrading Oligio X to Oligio KISS, demonstrating advancements in previous technologies to doctors. Additionally, you offer the Lavieen device, which provides a "BB cream effect." Could you elaborate on the evolution of your portfolio from the perspective of doctors? What do you foresee as the next step for your company?

Observing the beauty landscape, we've seen significant shifts over the past decade. Until about ten years ago, South Korea placed a premium on achieving wider, brighter skin tones, making pigmentation lasers like PICO lasers immensely popular. However, there's been a marked change in preferences. Nowadays, pigmentation concerns have taken a backseat, with the primary focus shifting towards anti-aging solutions. People are increasingly seeking ways to maintain a youthful appearance. One of the keys to Wontech's success lies in its ability to adapt. While externally we may not appear drastically different, internally, we've transformed from a pigmentation laser company to a leader in lifting technology. While our flagship models remain PICO and Oligio, our emphasis has shifted from treating pigmentation to addressing lifting and anti-aging concerns.

It's crucial for us to stay attuned to consumer demands, or at the very least, react swiftly to emerging trends. For instance, Thermage, with its monopolar RF technology, had been in the market for over two decades without achieving significant success until the anti-aging trend gained traction in Asia. Recognizing this trend, we swiftly followed suit, introducing our own monopolar RF technology. Our rapid response to market demands accelerated the growth of the anti-aging segment. As we look ahead, we understand the importance of agility in responding to evolving consumer preferences. While we may not predict the next big trend, we're poised to react swiftly. However, for the time being, we anticipate that anti-aging will continue to dominate the market globally. Our immediate focus is on expanding the reach of Oligio series to other countries, a mission we aim to accomplish within the next two to three years.

Recently, you acquired FDA approval for PICOALEX, and then you transitioned to become a significant player in lifting and anti-aging with the Oligio series, which has been your flagship product for the last two years. When discussing treatments, how do these two devices complement each other, and what are the advantages of initially focusing on pigmentation before moving into anti-aging?

Laser treatments are highly specific, targeting particular areas of pigmentation for removal. They address unwanted pigmentation directly rejuvenating the entire face, while lifting treatments offer a more comprehensive approach. These treatments don't contradict each other; instead, they complement one another. Starting with pigmentation treatment allows patients to address specific concerns, enhancing the overall appearance of the skin. Following this with lifting treatment contributes to a younger-looking appearance. Together, they offer comprehensive skin regeneration. Pigmentation lasers are considered essential for any clinic opening, providing a foundational treatment option for patients.

There are various alternatives in the market, especially when you consider some Western countries that have historically favored other brands. How do you ensure the compatibility of your equipment with devices already in use by doctors?

We don't approach it from a standpoint of exclusivity. Instead, we aim to offer doctors another option. It's not our intention to dictate what doctors should use or practice with. Korean doctors, for instance, are adept at managing their practices. When we introduce Oligio to them, they explore its possibilities fully, often integrating it with other treatments like shrink machines, fillers, and botox. We provide them with a versatile tool, allowing them to maximize its value. While this approach may not always be universal across other countries, we can leverage the successful templates and practices from South Korea to benefit other markets as well.

When examining various products and technologies for skin rejuvenation, it's evident that the depth at which the skin layer is targeted plays a crucial role in achieving desired effects. For instance, microneedling addresses surface issues that lasers might encounter if applied too aggressively. Additionally, there are technologies incorporating cooling systems to mitigate discomfort. In the case of Oligio X, renowned for its exceptional deep penetration, could you delve into its technical advantages and how effectiveness should be assessed considering these parameters?

We've endeavored to provide a broad spectrum of functionality in our machines to empower doctors to determine what works best for them. So, when we introduce an X mode in Oligio X, it's not to imply that it's superior or a recommended setting. It's merely another option for doctors to explore. We've observed significant variation in how our machines are utilized by doctors, contingent upon the type of clinic they operate. For instance, a doctor in Switzerland might see a few patients a day and devote considerable time and effort to each, aiming for optimal results. Conversely, those seeing upwards of 100 patients daily may not delve into additional functions and treat each patient uniformly. However, upon closer inspection, you'll notice that our machines offer a wide array of treatment possibilities across a broad spectrum of energy outputs, facilitating numerous combinations of treatment protocols. While I could detail the technological advancements of X mode over others, the primary objective is to furnish doctors with more options because ultimately, it's a tool for their use.

In the past, we may have had a different perspective, which I believe was an oversight on our part. We used to approach doctors, present our machines, and they would express interest. However, the real question for them was, "What does this mean for me?" Often, pushing our machines to maximum energy output could risk skin burns. I think many machines in the market, including those from our competitors, tend to overspend. Therefore, doctors who have the time can experiment with our machine, unlocking various treatment combinations or protocols, and leveraging their medical expertise to maximize efficacy for patients. We don't prescribe what's best for them; rather, this is the direction our technology needs to evolve towards.

The company's growth over the last four years has been impressive, with a more than 40% increase from 2022, achieving KRW 115.6 billion in 2023, with an operating profit of 46 billion KRW. As the aesthetic device market, including lasers, RF, and HIFU, is expected to grow continuously by around 13% for the next five years. What will be the main factors for growth? What challenges do you anticipate in gaining more market share?

The Korean market is currently somewhat saturated, but we plan to address these challenges by introducing new brands to doctors and creating fresh excitement among patients. We aim to position our products as more than just medical treatments but rather as lifestyle enhancements, particularly in Korea.

Our revenue growth strategy will focus predominantly on overseas markets, with an ambitious plan to target ten countries simultaneously, including Japan, the United States, Brazil, Indonesia, Australia, and Vietnam.

While the U.S. market is significant symbolically, its impact resonates globally. Success in the U.S. can potentially open doors to the European market. This leaves us with Europe and the Middle East. The Middle Eastern market is unique, primarily focusing on hair removal, an area where our current offerings don't align with their preferences. Most practitioners in the Middle East seek simple, durable hair removal machines, unlike our multifunctional, technologically advanced devices. To address this, we plan to refine our offerings to cater to their specific needs after establishing ourselves in Thailand and Japan.

The growth of Wontech has been extraordinary, particularly over the last five years. Let's imagine we come back for another interview with you in five years. What ambitions or objectives would you like to have achieved by then?

Even when Wontech was much smaller back when I started in 2017, with just $10 million in annual revenue and fewer than 100 employees, I looked at companies like Cynosure, Candela, and Cutera, these big American and European multinational companies, and realized they weren't so far out of reach. The aesthetic medical laser industry isn't as vast as others, making their success achievable. I believed that with the right strategies and rapid growth, we could break into the top five.

Today, that goal seems even more attainable. The market caps of these big American companies aren't soaring. I've spoken with some of their CEOs who admitted their dominance mainly stems from the American market. They struggle elsewhere. But as we've introduced machines that match or even surpass theirs and expanded our global branding and marketing efforts, I feel the tables have turned, and we're just getting started. Perhaps in five or ten years, I'll be leading the world's largest aesthetic medical equipment company.

For more details, explore their website at https://wtlaser.com/