Driving innovation since its 2002 spin-off from Samsung, Bixolon is a global leader in printing technology, delivering high-performance mobile label, POS, and RFID printers that power industries such as retail, logistics, and healthcare.
In recent times, Korea has seen a more saturated and competitive domestic landscape. This has led many Korean suppliers to explore opportunities abroad. Given your extensive overseas network, what are your views on the challenges and opportunities facing Korean suppliers on the global stage?
I believe there’s a significant shift in the business mindset of Korean companies, especially between those established in the 20th century and those that started after 2000. In particular, companies in the manufacturing sector have increasingly focused on the global market from the outset, rather than limiting themselves to the domestic market. I wouldn’t say this shift is solely due to fierce local competition. Rather, it's driven by a new generation of entrepreneurs who face fewer language barriers and are naturally more attuned to global trends. From the very beginning, their approach to product development, marketing, and manufacturing is underpinned by a "born to be global" mindset. This distinguishes them from their predecessors, whose focus was often more localized.
Moreover, there are structural and market differences between Korea and other manufacturing powerhouses like Japan and Germany. Both Japan and Germany benefit from large, populous domestic markets that allow them to localize products to meet local demands. For instance, once Germany develops a product, they can easily expand into the broader European market. Korea, however, doesn't have those big markets due to its smaller domestic market. As a result, Korean companies must think globally right from the product development phase.
In manufacturing, unlike the service industry where offerings can be tailored to meet regional needs, the cost structure is different. Producing a single unit versus 10 units can result in significant cost disparities, which is why Korean manufacturers need to develop products that have universal appeal and can succeed across various global markets.
The POS and label printer market is largely dominated by Japanese and American companies, which are known for their high quality and reliability. In contrast, Korean-made products are recognized for balancing cost and technology. What would you say are the key differentiators that help Korean companies compete against Japanese firms?
Korea finds itself positioned between manufacturing giants like Japan, Germany, and emerging players such as China and Vietnam. This "sandwiched" position actually highlights Korea's strategic advantage. If we widen the gap in this sandwich, we become stronger. But if these other countries grow stronger, we risk being squeezed. Right now, Korean companies are effectively widening that gap.
One key differentiator is that Japanese companies tend to source almost all of their components—around 200 for a printer—exclusively from Japan. Korean manufacturers, on the other hand, are more flexible and open to sourcing from countries like China and Vietnam. Geographically, Korea is closer to China, with only a two-hour flight, compared to Japan's four-hour flight. This proximity facilitates faster, more efficient communication and logistics. Additionally, Koreans generally have stronger language skills, particularly in English and Chinese, which gives us a communication edge in global markets.
Korean companies are also more adaptable and open to sourcing components globally, unlike many Japanese and German firms that prefer more localized supply chains. This flexibility allows Korean-made products to compete effectively in markets like Japan, the U.S., and even China. This openness and agility in sourcing and manufacturing are key strengths that set Korean manufacturers apart.
In 2023, e-commerce represented over 44% of total retail sales in Korea. Globally, this trend continues to grow, accelerated by the COVID-19 pandemic. To survive, retail stores, malls, and supermarkets are now focusing on offering more than just sales—they're providing an experience for consumers. Do you see this shift as a threat or an opportunity?
The COVID-19 pandemic has fundamentally shifted consumer behaviors, making contactless interactions the norm. This has led to a paradigm shift in the retail industry, emphasizing two key pillars: unmanned operations and e-commerce. These changes have not only accelerated the growth of our company but also redefined the way businesses operate.
If we look at the evolution of retail, particularly in e-commerce, consider how things worked a decade ago. For example, if you wanted to order an Americano, you'd go to a physical café, place your order with a cashier, pay with a card, receive a paper receipt, and the cashier would relay your order to the barista. Today, in this contactless era, the process has completely changed. You now use a self-service kiosk, pay with your card, and receive a receipt with your order number. The system automatically communicates with the kitchen, where staff use a POS printer to print labels with custom details for each order.
Over the past 10 years, we've seen a massive paradigm shift. Previously, a café only needed one POS system and one printer—one piece of hardware, one piece of software. Today, a typical setup requires multiple devices: a self-service kiosk, a POS system for the cashier, possibly two kiosks if demand is high, receipt printers, a large display to show waiting numbers, and another printer for the kitchen. Contrary to the expectation that e-receipts would reduce the need for printers, the contactless era has actually increased the demand for printing. Consumers want transparency in their transactions, and physical receipts provide clarity.
This trend demonstrates how both hardware and software industries are growing together. The increased demand for hardware—self-service kiosks, receipt printers, kitchen printers—drives a corresponding surge in demand for software to manage these systems efficiently. When customers order face-to-face, there's mutual understanding and trust between the customer and the cashier, so an e-receipt might suffice. But when ordering from a self-service kiosk, consumers often need a physical medium to clearly confirm what they ordered, how much they paid, and their order status—like a printed receipt with a waiting number to avoid confusion.
In essence, the contactless era is driving an even greater need for printers to ensure smooth, transparent interactions, and this is where I see opportunity rather than threat.
The situation you described—cafés with kiosks and payment devices connected to kitchen printers—is quite specific to certain countries. In Korea and China, shops tend to be highly automated. However in Japan, many small shops are still not as automated. The situation also varies across Europe and the U.S. How do you see this trend evolving globally? Are there regions where the demand for complete solutions is more prominent?
This type of solution is definitely expanding worldwide. Take one of the top global food and beverage companies, for example—they have around 16,000 stores in the U.S., and all of them use our printers to verify orders. When customers place an order, a label is printed and attached to the cup to clearly show what the customer ordered. In Korea, we have a remote ordering feature. Customers can place their order while they're a few minutes away from the store, and by the time they arrive, their coffee is ready with their name on the cup. A printed label is crucial to ensure accuracy and minimize errors.
Many people assume that as digitalization progresses, printers will become obsolete. However, printing remains the most cost-effective and reliable solution for maintaining clarity in orders and transactions.
How do you see the impact of digital technologies on this industry?
In some areas, digital technologies are replacing traditional methods, particularly in supermarkets. Nowadays, many supermarkets use electronic price displays. Previously, prices were printed and inserted into physical tags for each product. With electronic displays, stores can update prices instantly without the need to print new labels each time. This technology is efficient and is gradually reducing the demand for printing in this context. The e-label market is growing as a result.
However, in other areas, like e-commerce, printing is becoming more essential. The e-commerce sector has grown by 40%, and with it, the demand for printers to print shipping labels—complete with addresses and phone numbers—has surged. So, while digitalization may reduce printing in certain sectors, it’s driving increased demand in others, such as logistics and delivery.
Bixolon, established in 2002 as a spin-off from Samsung, has made significant strides in the printing solutions business. Today, Bixolon is a global leader in advanced Mobile, Label, and POS printers, including being the number one mobile receipt printer manufacturer in the Western European market. Could you highlight some key milestones in Bixolon’s history?
Almost 21 years ago, in 2002, Bixolon spun off from Samsung Electronics. At that time, we were a very small company with a narrow product line—just three or four production lines. However, our greatest asset was our people. They were highly trained in complex product development and quality control processes, which enabled us to expand into global markets. Since our spin-off from Samsung, our employees brought with them valuable experience and knowledge on how to run the business. This allowed us to move quickly—when I ask for something, it gets done immediately. This has been a key factor in Bixolon’s growth after becoming independent.
Typically, when a company spins off, it means losing the protective umbrella of a larger parent company, and you must fight to survive on your own. However, with our strong workforce, we were able to grow and successfully develop products for global markets.
One of the key milestones I would highlight is 2005. Just three years after the spin-off, we established global branch offices in the United States and Germany. This marked the moment we were truly ready to globalize.
In 2017, Bixolon was integrated into the IDIS group. As part of IDIS Holdings, you are affiliated with other companies such as KORTEK and IDP, each contributing specialized expertise across different industries. Being part of the IDIS group offers potential synergies and collaborative opportunities across various sectors and technologies. What synergies have you been able to create among these group companies, and how do other affiliates benefit your business?
One key synergy within the IDIS group involves IDP, which is a subsidiary specializing in ID card printers. These printers produce ID cards for companies, driver’s licenses, and other applications by printing photos and names on PVC cards. IDP has strong expertise in printing technology and, as they looked for ways to expand, they recognized that Bixolon was the leading company in the Korean POS and label printer industry. IDP, being the top ID card printer manufacturer in Korea, considered two options: either develop POS and label printers in-house or acquire a company like Bixolon. Fortunately, the timing aligned as the owner of Bixolon was looking to retire, and IDIS Holdings acquired the company. That’s how Bixolon became part of the IDIS group.
Since I oversee both IDP and Bixolon, I hold dual roles, and I’ve been in charge of IDP since 2005. Given that both companies specialize in printing technology, we saw an opportunity to create significant synergies by integrating our operations. First, we consolidated the production lines, incorporating IDP’s assembly lines into the Bixolon plant to enhance productivity. By integrating these operations, we were able to reduce costs and increase efficiency.
Second, we combined our purchasing channels. Both companies need to procure components such as motors and gears for our printers, and by unifying our purchasing, we gained better price competitiveness and increased our bargaining power.
Lastly, we aligned our marketing and operational efforts. Just as our global competitor specializes in both label and card printers, we realized that by sharing marketing strategies, we could strengthen our presence in the global market. For example, when we attend international exhibitions, we can share a booth, showcasing both companies’ products and amplifying our marketing capabilities.
When examining retail markets, there are significant differences among malls, supermarkets, restaurants, and smaller branches. Each of these facilities has unique needs. For instance, malls may prioritize high-speed printers, while smaller shops might look for more compatible options. Supermarkets, on the other hand, tend to focus on sustainability to minimize paper use. Bixolon has developed a wide range of products to address these varying demands. For example the SRP-Q300II, a compact printer tailored for space-constrained environments. On the other hand, you also offer the premium SRP-350+III, designed for high-speed performance and capable of using sustainable paper. How do you tailor your offerings to meet the different needs of your clients?
We have a diverse portfolio of products designed to meet the specific requirements of our clients, regardless of their size. Some clients prioritize price over performance, while others seek higher performance regardless of cost. For example, large supermarket chains often demand higher reliability and speed from their products, and price is less of a concern for them. A single failure or error in a POS terminal can lead to significant inconvenience for customers waiting in line.
In terms of speed, we typically offer printers that operate 200mm/s or 250mm/s, but for these supermarkets, we provide options that reach 350mm/s. This increased speed significantly enhances their productivity and efficiency. Ultimately, this productivity gain can justify the cost, as it might allow them to operate with fewer staff or streamline their processes.
On the other hand, retail shops like cafés often have shorter processing times, so speed is less critical for them. They generally prefer more cost-effective solutions. However, for high-end jewelry stores and premium shops, aesthetics play a crucial role. They often require box-type printers that not only perform well but also complement the overall ambiance and interior design of their establishments.
To remain competitive, you previously mentioned that you have combined production lines between IDP and Bixolon, and I understand you handle all production in-house, including boards and other critical components. You also emphasized the importance of developing both software and hardware for your printers. What are the most important factors for being nimble and responsive to clients with diverse product needs? Additionally, how does Bixolon differentiate itself from its competitors?
The biggest competitive advantage for our company, which sets us apart, is our unwavering commitment to earning the trust of our clients by strictly adhering to specifications. When I refer to specifications, I mean critical factors such as printer speed and the reliability of the printer's cutting mechanism. For instance, we rigorously test our machines to ensure they operate error-free for up to 2 million cuts or 300 kilometers of printing paper.
To conduct these tests, we invest significantly in printing materials, as our testing facilities operate 24/7. In contrast, many Chinese competitors do not follow such stringent specifications; they might be complacent with, say, 1.9 million cuts. While the standard requires printers to perform without error for 2 million cuts, if our printer experiences a failure at 1.9 million, we will retrofit it and start from scratch to ensure compliance with our specifications.
This dedication to quality and consistency not only builds confidence among our clients but also enables us to be agile in responding to their varied needs.
You're not solely focused on the retail industry, as you've developed products for medical institutions, factories, transportation, and logistics, addressing a wide range of needs. It's crucial that the prints on labels in the medical field are highly reliable, as patient safety is at stake. In factories and logistics, speed is essential for streamlining processes. How do you perceive the importance of these other sectors compared to retail?
As you mentioned, medical institutions and logistics differ significantly from retail in terms of their unique requirements, and we supply our products to both sectors. In logistics, we provide solutions to major e-commerce company and logistics company in the U.S., as well as logistics company and grocery delivery company in the domestic market, ensuring that precise shipping details are accurately labeled.
In medical institutions, we supply labels for wearable bands used for patient identification. In this context, personal hygiene is of utmost importance, so our labels are made from special materials that enhance hygiene for patients. Labels play a critical role in healthcare; for instance, when you visit a hospital for blood tests, labels are attached to your blood sample containers. This necessitates specialized printers capable of producing customized labels tailored to individual patient needs.
Linerless POS printer_SRP-S300
I would also like to highlight an emerging trend. Traditionally, labels had a paper backing that needed to be removed, generating considerable waste. However, we are now transitioning to liner-free labels, which do not require a backing, significantly reducing waste. This shift is particularly relevant given today’s environmental concerns. The new liner-free labels allow for seamless application and cutting, which streamlines the process. Advanced technology is required for this, as traditional sticky liners could attach to rollers during printing, leading to complications. In contrast, our new liner-free labels ensure smooth operation.
Does this new generation of paper, as well as the machines adapted for it, apply to all industries?
Yes, this technology is particularly beneficial for logistics and identification applications. For example, at a top global f&b company in the United States, these papers are used to minimize waste and enhance workplace safety, as employees can slip on waste left on the floor. This innovation not only conserves paper but also eliminates restrictions on printing lengths. When we print, we can cut the paper and apply it directly to products, thereby reducing waste significantly.
Over the recent years, BIXOLON has maintained consistent growth in its sales revenue, achieving an impressive 24.2% CAGR since 2001. What has been the key driver of this growth? How do you foresee the next 3 to 5 years? What is your strategy to continue growing?
The primary factor driving our company’s growth has been our early investment in advanced technology, which has allowed us to outpace our competitors. This proactive approach enabled us to become a preferred supplier for top-tier companies like a top global f&b company, and now a global donut company is also recognizing the value of our solutions. Our commitment to investing in technology has significantly increased our market share over the past few decades. With a global mindset focused on expanding into international markets, we have enhanced our marketing capabilities not only in the U.S. but also in Europe, the Middle East, and South America.
How do you view the role of your diverse portfolio, particularly in mobile printers, where you already hold a dominant position? How do you see the future of these different business segments?
Mobile printer SPP-R200III
We initially started as a manufacturer of POS printers and gradually captured market share. However, we recognized that the next growth opportunity lay in mobile POS solutions, as mobile devices were gaining traction. The primary advantage of mobile devices is their portability. For instance, in the logistics sector, a company uses mobile printers to notify recipients when they are not at home, providing them with printed labels as proof of delivery. This not only enhances communication but also increases visibility for customers. The markets for PDAs and mobile devices are growing in tandem. Since the 2010s, advancements in data processing speed have allowed for faster information handling, enabling customers to build their data more efficiently and at a lower cost.
You mentioned that going global has been crucial for you in the past, as the Korean market is relatively limited. With more than 4 offices worldwide, you've been able to grow, and international markets now represent over 80% of your revenue. Do you foresee maintaining your dominance in international markets over the next three to five years?
When we invest in the company, we carefully evaluate cost-benefit efficiency. The POS market has matured for us, and we hold a certain percentage of market share in mobile devices. However, the label market is substantial and growing even faster than the POS market, primarily due to the rise of e-commerce, which has increased the demand for shipping labels. For instance, when we purchase electronic devices, we see multiple labels: one with a serial number on the back of the device and additional labels on the packaging. The sheer volume of labels in each shipment indicates significant growth potential in the label printer market. Bixolon recognizes that there are still many opportunities in this sector, especially since our market share is currently relatively low. We are prioritizing and investing more to expand our range of label printers.
Another significant trend in the label market is the increasing popularity of RFID solutions. Twenty years ago, the price of an RFID chip was around $10; a few years ago, it dropped to $1, and now it’s less than $0.10. This dramatic price reduction has made RFID technology more accessible. In our label printers, we have integrated RFID encoding modules, which allow us to print information while simultaneously encoding data into RFID chips. This capability enables automatic tracking of products, especially with RFID readers that can detect 900 MHz. The RFID market is rapidly expanding, given the vast number of products globally. Therefore, we are investing heavily in label printing technologies.
Can you elaborate on the potential of RFID printing? Do you have any case studies with your clients?
For example, we executed a project with one of the Regional Offices of Education in Korea, where we helped manage assets like PCs in schools using our RFID readers. Our RFID readers come equipped with chips and antennas or inlays on the back. A critical aspect of these readers is ensuring that the printed data matches the data encoded in the chip. Issues can arise when the size of the labels is too compact, as is often the case in high-end jewelry shops. These labels must be small enough to fit on the back of the jewelry. When the label size is too limited, the data may be printed on one label, while the data encoded in the chip might be on a different one, leading to mismatches. Ensuring precise alignment between printed and encoded information is essential for developing effective RFID encoding printers.
The applications for RFID seem to be much broader than traditional printing due to its advantages. How do you see RFID printing impacting your business growth? Do you believe it will create new niche applications for your products?
RFID printers tend to be two to three times more expensive than traditional printers, which allows for higher profit margins. Additionally, they require fewer units due to their faster data processing capabilities compared to standard printers. I believe RFID printers can become a significant revenue stream for us, given their higher profit margins.
When it comes to factory automation and building IoT systems, the ability to print on the spot and apply labels to different modules facilitates a perfectly coordinated workflow within the factory. Is this a potential new business avenue for you to explore in factory automation?
Yes, indeed. For instance, laptops can be equipped with RFID tags, and by installing a 900 MHz reader, we can track their locations. In the context of asset management, RFID technology serves as an excellent solution.
Is there synergy with the security aspect as well, considering your parent company specializes in security? What applications do you envision beyond education and manufacturing?
Our asset tracking and security businesses are quite distinct. There are already companies that manufacture CCTV systems equipped with software to analyze customer patterns. These surveillance cameras in shopping malls create heat maps to track customer traffic by counting the number of visitors. For example, we can analyze which display setup is most effective: whether products placed at the top, middle, or bottom attract the most attention from customers. Since we focus on asset tracking, I believe the security business operates in a different domain.
Let's say we reconvene for another interview in three to five years. What would you like to reflect on regarding your career as the CEO of both IDP and Bixolon?
As I mentioned earlier, we are focusing our investments on two key areas. The first is enhancing the connectivity between various devices and the software. We are witnessing a paradigm shift from a single POS to multiple devices connected to integrated software solutions. Our aim is to become a household name as a total solution provider in this domain.
The second goal I want to achieve in the next three to five years is to capture a larger market share in the label market. Currently, our market share in this segment is not as high as we anticipated; although we rank among the top 10, we are not yet a major player. I aspire to enhance our brand reputation in the label market, similar to what we have accomplished in the POS and mobile sectors.
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