Successive product innovation in emerging market — A case of fastener business of YKK

This paper describes product innovation produced by market needs in emerging country through globalization of manufacturing industry, in a case of fastener business by YKK. It is generally said that product innovation is mainly produced in advanced enterprises in advanced countries, and after maturity of domestic market of such countries, the new product will be popularized also in emerging countries. Manufacturing enterprises in emerging countries should catch up the advanced technology and penetrate the market usually by reducing cost of production without producing new product innovation. YKK was one of such late-comer-enterprises in Japan as an emerging country in early 20th century, and they should absorb the advanced technology from USA at the beginning. However they were successfully produced second product innovation and enlarged their business even for advanced countries over the world. They have been grown up so rapidly in these several decays, and still now they keep its high world-wide-market-share of over 45%. The detailed analysis on their business clarified that their second product innovation was led by specific market needs in Japan as an emerging country. The analysis implies on how manufacturing enterprises produce a successive product innovation to overcome stagnation in the globalized market.