The power of German „hidden champions“ enterprises


"Made in Germany" is seen by many people as the high-quality representative in the world, in addition to the world-famous large-scale industrial group like Siemens, BMW and Daimler, Germany has also created thousands of small, but strong "hidden champions", although they are not familiar to the masses, but it is a pillar and backbone of the "made in Germany".

According to Hermann Simon, a management professor known as the "father of the hidden champions of Germany", who has been following the "hidden champions" of Germany for many years. Based on his definition of "hidden champions", enterprises must first meet the following three criteria: The global market share in an industry must reach the first or second place; Its annual output is around 2 billion euros; Hardly known to the public.

Depend on the reseach of GTAI, 99.6% of German enterprises are small and medium-sized enterprises, which provide 79% of jobs and contribute more than 55% of economic added value. More than 1,400 of these companies meet the criteria of "hidden champions", and thus, Germany becomes the country with the largest number of "hidden champions" in the world, nearly half of the world's total.

German "hidden champions" tend to be highly professional and serve companies directly, rather than individuals. They focus on market segments and provide one-to-one consulting and high-end customized services for specific clients. For example, Seele company, headquartered in Schwaben, Bavaria, Germany, focuses on the design and construction of glass facades, and its products are used in many landmark buildings around the world. Seele company also designs and manufactures the top layer of Beijing's "Bird's Nest" national stadium and the glass curtain wall of Shanghai Grand Theater. The company has participated in numerous glass projects in Europe and around the world but has kept a low profile in front of the media.

North Rhine-Westphalia (NRW) as one of the most developed areas in the German economy, many headquarters of German enterprises located in this area, such as Deutsche Telekom, Bayer, ThyssenKrupp, etc. Meanwhile, due to its unlimited development potential, NRW has also become a gathering place for many "hidden champions".

Mubea is a family business located in NRW, specializing in the manufacture of automotive components for many years. It is a manufacturer of high-quality springs. According to the diversity of its products, the company is organized into product-related business units, such as engine components, suspension components, body components and so on. All other functions that benefit from the synergies of a large company have been brought together and organized into central units, such as finance, purchasing, logistics. Although there is no complex product and service system, Mubea is committed to the development and innovation of components, constantly improving product quality, and it is also a long-term partner and supplier of Audi, BMW, Ferrari, and other global automobile manufacturers. Mubea is the market leader in many segments of the spring industry and achieved a remarkable global presence in the past years. They have realized 2.4 billion € turnovers with 15,000 employees worldwide at 50 productions, sales, and development sites. In China, Mubea has established a subsidiary in Taicang and signed a contract with Tongji University to set up scholarships and internship bases, etc., to fully develop the Chinese market.

With the increasing level of economic and trade exchanges between China and Germany, China and Germany will also strengthen cooperation in the field of "hidden champions". Chinese companies can learn from the experience of German "hidden champions", and German "hidden champions" can also make full use of China's huge market. Such complementary advantages will provide more open space for cooperation between the two sides. Therefore, as a bridge of information exchange between China and Europe, Deutsches Laecheln GmbH will make full use of excellent local German enterprise resources, and introduce the development experience of German "hidden champions" enterprises by organizing Sino-German "hidden champions" enterprise exchange meetings and seminars, committed to helping Chinese companies transform and upgrade and create more "hidden champions" of China.

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Resources: Wirtschaftswoche