One product. One market.
Hidden champions usually belong to the category of owner-managed companies or family companies. They are medium-sized enterprises, not listed on the stock market and are therefore largely unknown. By focussing consistently on a small market segment or specialising in a single product area, they avoid intense competition and price wars, especially with larger companies. By having a very narrow product range, they deliberately take the risk of “placing all their eggs in one basket”.
They are noted for focussing on the wishes and requirements of their customers as there is often a strong level of mutual dependency. This close link increases the pressure to be an innovator to support the success of customers.