An empirical survey conducted at the Hamburg University of technology (TUHH) shows the BRIC markets are perceived to be of high and growing strategic importance by German “Hidden Champions”. The survey suggests that many firms belonging to the German “Mittelstand” have just begun to realize the potentials of India as a strategic market. The survey reveals that such companies often try to target high-end, premium segments with products developed at the headquarters. An exclusive focus on affluent customers by firms enhances the risk of side-lining large customers groups that seek “affordable excellence”.
Ignoring them might turn into a high-risk strategy in the medium to long run as the economy grows.