Höganäs is a leading metal powder manufacturer with automotive components (metal powder) as the largest business segment. Höganäs serves global market in 75 countries worldwide and has been present in Asia for decades with subsidiaries in Japan, Korea, Taiwan and China. At the moment, its Southeast Asia operation is managed through third parties distributors and agents. Considering Southeast Asia as a growing high potential market, Höganäs decided to seek for further market information and fact finding on the region. Business Sweden was selected as a strategic partner to provide Höganäs with high quality decision-making materials to help them decide on which markets and segments to prioritize in the region.
STRONG LOCAL KNOWLEDGE ON MULTI MARKET ANALYSIS
In early 2016, Business Sweden supported Höganäs with multi market research to evaluate and determine the potential segment for its selected market in Indonesia, Vietnam, Philippines and Myanmar. Business Sweden local offices delivered all the necessary information for markets comparison and concluded that the Indonesian market has the greatest potential. As a result, actions were taken to strengthen Höganäs footprint in Indonesia.
“We plan to get closer to the market to provide better service to customers in this region. Business Sweden is a suitable partner to do multi market research and analysis as they are equipped with local market knowledge on our targeted market in Southeast Asia. Having the market data will help us decide confidently which markets to prioritize.”, said Ola Litström, Country Manager for Taiwan/SEA.
The market research pointed out two industries of special interest for Höganäs in Indonesia – the automotive sector and the construction & mining sector. Business Sweden Jakarta office arranged a visiting program to open sales dialogues between Höganäs and key market players as well as potential clients in Indonesia. During 2017 Business Sweden will contibue supporting Höganäs throughout the process of local establishment in Indonesia.
“Indonesia is a big market and it will require a systematic approach to be able to sustain in the market. Höganäs needs to have local presence here to understand and grow on the market”, Ola Litström concludes.