Global niche market leaders in emerging Asia and the necessity to become market insiders

Bernd Venohr and Bart Kamp
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Bernd Venohr: Management Consultant
Bart Kamp: ORKESTRA – Instituto Vasco de Competitividad

EKONOMIAZ. Revista vasca de Economía, 2019, vol. 95, issue 01, 111-133

Abstract: In the present article we will focus on the implications that the Emerging Asia growth trend implies for medium-sized companies rom 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: emerging Asia; hidden champions; market insidership; regional headquarters (search for similar items in EconPapers)
JEL-codes: D21 F23 L21 (search for similar items in EconPapers)
Date: 2019
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