Global Niche Market Leaders in Emerging Asia and the Necessity to Become Market Insiders
Ekonomiaz Revista Vasca de Economía N.º 95, 1.º semestre, 2019
24 Pages Posted: 21 Jun 2019
Date Written: December 3, 2018
In the present article we focus on the implications that the Emerging Asia growth trend implies for medium-sized companies from Germany that are market leaders or a top 3 supplier in their respective niche or market segment (aka ‘Global Niche Market Leaders’). We find that only a small portion of the companies considered have developed insidership on the Asian continent in general and in China in particular. We contend that this can put a mortgage on the strength of their global market position in the mid-term. We argue that it is recommendable to adopt a more assertive approach towards the Asian/Chinese market, implying a stronger emphasis on other foreign entry modes than export and a redoubling of R&D assets between -in this case- a German Standort and an Asian one. Similarly, we conclude that succeeding in Asia is becoming less and less a question of following a trickling up strategy (positioning oneself first in lower-end market segments and moving up gradually) as the continent is acquiring a lead market status for several high-tech industries.
Keywords: market insidership, Hidden Champions, emerging Asia, regional headquarters
JEL Classification: F23, D21, L21
Suggested Citation: Suggested Citation