The unsung stars are often owner-operated companies whose specialisation gives them a clear focus. And they come up with some resourceful ways of defending their lead through consistently investing in research and development – a field in which Saxony is easily one step ahead; a key factor behind the success of many Saxon products. Further important factors contributing to the “hidden champions’” success include the state’s business-friendly policies and good education system.
Local Heroes
SAXONY’S HIDDEN CHAMPIONS
Among economics experts, top companies that lead the market with great success, while nonetheless operating to some extent off the public radar, are known as “hidden champions”. These unsung stars are often family-run businesses and suppliers whose key strength lies in their specialisation.
Saxony’s world market leaders are quick off the blocks
Saxony’s hidden champions: their innovative entrepreneurship and flexible reactions to constant change in their sector means these front runners do not depend on their brand being a household name.
Focus, the key to success
Many of them dominate the entire global market in their sector – but though they have the upper hand in niche markets, the “hidden champions” are relatively unfamiliar. However, they are what really drives the German economy. Several are based in the east of the country. With 29 world market leaders, Saxony has almost as many global players as all the other four eastern states put together.
Today, researchers define “hidden champions” as companies that are among the top three players in their market segment worldwide and No. 1 on their continent, bringing in a turnover of up to 5 billion euros. In Saxony, they are found in a variety of sectors, from traditional makers of musical instruments to construction material manufacturers or IT providers. A small selection includes:
Start-ups and new business ventures move ahead
As well as traditional companies and SMEs, start-ups and new business models are also gaining ground in Saxony. Young companies such as Spreadshirt or Wandelbots are also taking the whole world by storm. They, too, benefit from the state’s optimal conditions: the high concentration of research institutions and Saxony’s innovative spirit combine to make the state a breeding ground for new ideas.
Many companies are already reaping the fruits of success, but it doesn’t stop there: the Saxon hothouse for hidden champions is still expanding. If the state continues its success story, the 29 local companies identified as world market leaders will soon be growing in number.
One thing is certain: Saxony will be doing everything in its power to nurture that future trend.
Photo credits: Central Saxony district, Wandelbots