business perspectives on emerging markets 2012-2017 · source: global intelligence alliance,...
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Business Perspectives on Emerging Markets 2012-2017
Findings from global survey, June 2012
Everyone is talking about Emerging Markets. But what is the reality behind the scenes?
In April-May 2012, GIA sought to find out how global companies are thinking about Emerging Markets. What do they view as success factors or threats? What mistakes have been made, and should be avoided? Do companies have the information to capture fast moving market opportunities?
This study is important. Half the respondents say at least 30% of their global revenues will come from Emerging Markets by 2017. As a market intelligence partner to companies around the world, we are positioned at the forefront of our clients’ international plans, particularly for Emerging Markets. With this study, we share the strategic ambitions, concerns and challenges facing companies in fast growing markets. We trust this will prove enlightening for your Emerging Markets strategy.
I welcome you to share your thoughts with any of my colleagues, as our mission is to help companies understand, compete and grow in global markets.
www.globalintelligence.com | [email protected]
Business Perspectives on Emerging Markets 2012-2017 Why this study is important
Markko Vaarnas CEO Global Intelligence Alliance
Emerging Markets focus and expectations
• Most companies define Emerging Markets as BRIC or BRIICS, or based on stage or growth of economic development, but other factors such as market size, location and industry-specific opportunities come into play when prioritizing countries.
• BRIC countries are still seen as the top four Emerging Markets for 2012-2017. Interest in Russia is lagging behind the other three countries.
• Most of the non-BRIC Emerging Markets that international companies plan to target in 2012-2017 are in Asia or Latin America. Indonesia is the next upcoming Emerging Market, with over a quarter of companies naming it fifth after the BRICs. South Africa, Vietnam, Mexico and Turkey follow.
• Asian, European and Latin American companies are all bullish about expected revenues from Emerging Markets (38%, 37% and 36% of total revenues by 2017, respectively), followed by US companies (34%).
Executive Summary: Brazil, China and India dominate Emerging Markets
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Motivations and concerns
• Most companies see a presence in Emerging Markets as necessary to their future success, and are investing now to gain a foothold and build global market share.
• It has become less about lower production costs, though this is still a driver for some.
• Almost all companies (91%) say they could have done something better in their Emerging Market strategy.
• The main regrets are not adapting more to local conditions, not entering sooner and not acquiring better market intelligence.
• Over half say that information on Emerging Markets is not readily available in their organizations, with three out of four doubting the accuracy and completeness of the information that they do have.
Indonesia gaining as companies seek market share
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How can global companies succeed in Emerging Markets in 2012-2017?
• In April-May 2012, GIA conducted an online survey amongst business managers at 431 large and mid-sized companies around the world.
• We asked them questions such as: • How do you define Emerging Markets in your company? • Which are the top Emerging Markets for your industry over the next five years? • What key factors will determine whether foreign companies succeed in Emerging Markets? • What are the biggest threats to succeeding in Emerging Markets? • What are your company’s main reasons for investing in Emerging Markets? • What share of your company’s global revenue do you expect to come from Emerging Markets? • Which one aspect of your Emerging Markets strategy would you go back and change if you could?
• The respondents’ job functions included strategic planning/business development (26%), market/competitive intelligence (23%), senior management (19%), sales and marketing (13%), research and development/product management (9%), among others.
• Nearly half (42%) of the companies in the survey earned more than $1.3 billion (1 billion Euro) in annual revenue and more than 50% (58%) have more than 1,000 employees.
• See Appendix for more details about the survey sample.
430 managers told us what drives their strategy How do companies perceive Emerging Markets; what are their plans; what do they want to achieve?
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• Manufacturing & Industrial
• Telecommunication, Technology & Media
• Professional & Business Services
• Financial Services
• Consumer & Retail
• Pharmaceuticals & Healthcare
• Energy, Resources & Environment
• Automotive
• Chemicals
• Logistics & Transportation
10 industries are represented in this report The industries are represented by the following symbols
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• GIA took the opportunity to donate $6.50 / 5 Euros for every completed survey response.
• The total donation came close to $2,800 / 2,200 Euros, distributed across the following local charities:
This study also helped people living in Emerging Markets Donations from this study went to four charities assisting poor communities in Emerging Markets
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• Cambodia: Tabitha (NGO that runs self-help programs on personal and financial development for the poorest people)
• Brazil: VidaBela (NGO that awards university scholarships to talented candidates from highly disadvantaged socio-economic backgrounds)
• Russia: Gift of Life/Podari Zhizn (charity that funds vital medicine for leukemia treatment and searches for potential bone marrow donors for children)
• South Africa: CANSA (NGO that provides holistic cancer care and support to those affected by the disease)
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Emerging Markets focus to 2017
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Most companies think of Emerging Markets as BRIC, BRIICS, or based on stage of economic development
9
Market growth rate is also important and a quarter of companies classify by region
How Global Companies Define Emerging Markets
39%
31%
28%
27%
23%
20%
16%
10%
8%
3%
Stage of economic development
Market growth rate
BRIC (Brazil, Russia, India, China)
BRIICS (BRIC, Indonesia, S. Africa)
By geography (eg. in region X)
Penetration level of product/service
Market not in US, W. Europe, Japan
Penetration level by my company
Penetration level by multinationals
Proprietary listings eg. FTSE, S&P
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey. Respondents were allowed to select more than one.
Question: How do you define Emerging Markets in your company? N=411.
Emerging Markets focus to 2017
55% BRIC or BRIICS
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Emerging Markets in Asia and Latin America are generating the most interest
10
Top 10 Emerging Markets (2012-2017) by % all companies
Emerging Markets focus to 2017
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey.
Question: Which are the top 5 Emerging Markets for your industry over the next 5 years? N=427.
Russia, South Africa and Turkey are the other top targets for the next five years
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Brazil, China and India seen as equally important in the next five years
11
Russia is also still significant but the level of interest is well behind the top three
Top Four Emerging Markets (2012-2017)
66.4%
65.7%
65.4%
39.7%
India
Brazil
China
Russia
Emerging Markets focus to 2017
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey. Respondents were allowed to select more than one. * Figures based on 2012, 2013 and 2017 average from IMF World Economy Outlook: Growth Resuming, Dangers Remain
• Brazil, Russia, India and China are still the top four most important Emerging Markets for 2012-2017.
• Russia is least favored amongst the BRIC countries, with the majority (~65%) focusing more on India, Brazil and China with equal levels of interest.
• According to the IMF, average GDP growth rates for 2012-2017* will be 7.4% for India, 3.7% for Brazil, 8.5% for China and 3.9% for Russia.
• Brazil and Russia seem to be finding favor for reasons other than their growth rates, such as their potentially huge domestic markets, natural resources and dominance within their regions. Question: Which are the top 5 Emerging Markets for your industry
over the next 5 years? N=427.
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26%
28%
21%
33%
29%
25%
24%
32%
17%
19%
15%
13%
28%
28%
40%
22%
US headquarters
European headquarters
Latin American headquarters
Asian headquarters
Brazil Russia India China
European companies are prioritizing Asia and Latin America despite their proximity to Russia
12
Latin American companies are less adventurous when it comes to looking outside their home region
Top Four Emerging Markets by Location of Headquarters (2012-2017)
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey. Respondents were allowed to select more than one.
Question: Which are the top 5 Emerging Markets for your industry over the next 5 years? (To 2017) N=395 (Total): N=95 (US), N=161(Europe), N=44 (Latin America), N=95 (Asia).
Emerging Markets focus to 2017
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205.72 1,205.10 1,343.24 138.08
China’s economy outweighs the other BRIC countries but Brazil and Russia have highest GDP per capita
13
Different BRIC countries are attracting interest and investment for different reasons
Emerging Markets focus to 2017
Source: Global Intelligence Alliance; IMF; CIA
Population Persons (millions)
GDP USD (Billions)
GDP (PPP) per Capita Current international dollar
GDP growth rate 2012 (e)
Land Km2
Brazil India China Russia
11,600 3,700 8,400 16,700
2,518 1,843 6,989 1,791
3.0% 6.9% 8.2%
4.0%
8,514,877 3,287,263 9,596,961 17,098,242
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303 286 1,312 375
China is the easiest to do business in and Brazil is becoming more competitive in the global context
14
Levels of development and the opportunities vary across the different BRIC countries
Emerging Markets focus to 2017
Source: Global Intelligence Alliance; MIIT China, TRAI India, Anatel Brazil, Deloitte
Brazil India China Russia
Mobile subscribers Q1, 2012
Teledensity (wireless) Q1, 2012
1.01 billion 919 million 250 million
No. of millionaire households 2011, thousands
Ease of doing business Index (World Bank) 2011, ranking
91 132 126
Global Competitiveness Index (WEO) 2010/11 to 2011/12, ranking
120
227 million
74% 76% 126% 160%
26 53
58
51
27 66
63
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China, India and Brazil look good to most industry sectors; Russia has less widespread appeal
15
Healthcare sector is least positive on China, Automotive on India, Energy & Resources on Brazil, and Consumer & Retail on Russia
Top Four Emerging Markets by Industry (2012-2017)
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey. Respondents were allowed to select more than one.
Question: Which are the top 5 Emerging Markets for your industry over the next 5 years? (To 2017) N=427.
27% 25% 26% 30% 30% 24% 29% 29% 27% 29%
27% 32% 28% 30% 29%
24% 29% 23% 31% 21%
19% 15% 16% 13% 12%
21% 17%
21% 16%
21%
27% 28% 30% 27% 29% 31% 25% 27% 26% 29%
Brazil Russia India China
Emerging Markets focus to 2017
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Second tier Emerging Markets span the globe, led by Indonesia and South Africa
16
No Middle Eastern countries named amongst top 10 Emerging Markets in the next 5 years after BRIC
Top 10 Emerging Markets after BRICs (2012-2017)
Emerging Markets focus to 2017
Africa Asia Europe Latin America
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey.
• Half of the 10 non-BRIC Emerging Markets that international companies plan to target in 2012-2017 are in Asia or Latin America.
• Indonesia is the next upcoming Emerging Market, with over a quarter of companies naming it fifth after the BRICs.
• South Africa, Vietnam, Mexico and Turkey follow with approximately one fifth of companies including one of them in their top five.
• Turkey is the only country in Europe to make it into the top 10 Emerging Markets after BRIC.
Question: Which are the top 5 Emerging Markets for your industry over the next 5 years (to 2017)? N=427
Rank Country %
5 Indonesia 27.4% 6 South Africa 22.2% 7 Vietnam 20.1% 8 Mexico 18.5% 9 Turkey 17.8% 10 Argentina 10.3% 11 Chile 9.6% 12 Thailand 9.6% 13 Malaysia 8.7% 14 South Korea 8.7%
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After Indonesia and South Africa, Turkey and Mexico interest US and European companies most
17
Latin American companies focus more on their own home region; Asian companies favor Vietnam
Emerging Markets focus to 2017
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey.
Question: Which are the top 5 Emerging Markets for your industry over the next 5 years (to 2017)? N=395; N=95 (US); N=161 (Europe); N=44 (Latin America); N=95 (Asia).
Top 10 Secondary Emerging Markets by Location of Headquarters (2012-2017)
15% 18% 4%
26%
15% 17%
11%
11% 10%
11%
3%
22% 15% 10%
29%
6% 14% 17%
7%
6% 10% 4%
20%
2%
5% 7% 1%
10%
6% 3% 20% 3%
6% 6%
4%
6%
4% 7%
1%
8%
US HQ European HQ Latin American HQ Asian HQ
Malaysia
South Korea
Chile
Thailand
Argentina
Turkey
Mexico
Vietnam
South Africa
Indonesia
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Vietnam stands out for Consumer, Logistics and Resources sectors, Mexico for Healthcare
18
Chemical sector very focused on Indonesia and South Africa, Consumer & Retail on SE Asia
Emerging Markets focus to 2017
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey.
Question: Which are the top 5 Emerging Markets for your industry over the next 5 years (TO 2017)? N=427
Top 10 Secondary Emerging Markets by industry (2012-2017)
21% 18% 16% 20% 21% 12% 16% 16%
27% 21%
18% 15%
12%
20% 6%
14% 18% 19%
27%
8%
14% 15%
14%
7% 20%
3%
18% 6%
14%
21%
10% 15% 14%
10% 12%
20%
12%
13%
4%
4%
14% 8%
10% 12% 11%
17%
6% 16%
8%
8%
5% 8%
8% 6% 3% 14% 6% 3%
5%
8%
4% 5% 9% 6%
3%
8% 8%
6%
5%
14%
6% 8% 2% 6%
8%
4% 6%
9%
5% 8%
3% 6% 9% 3% 12% 1% 6% 6%
4% 5% 2% 6% 10%
4% 7% 4% 6% 5% 4%
South Korea Malaysia Thailand Chile Argentina Turkey Mexico Vietnam South Africa Indonesia
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Emerging Markets aspirations to 2017
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60
70
40
50
20
30
10
70% Gain foothold for long term success in large future market
39% Our customers are there
51% Gain global market share
34% Lack of growth/profit in established markets
25% Diversify risks 24% Tap into short/medium term growth/profit
17% Establish low cost supply base
14% CEO/board directive / Competitors are there
Most companies are investing to establish a presence in future major markets for long term gain
20
Less than one fifth look to Emerging Markets as a low cost supply base
Motivations for investing in Emerging Markets
Emerging Markets aspirations to 2017
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey. Respondents were allowed to select more than one.
• The aim behind global companies’ 2012-2017 emerging markets strategy is to build markets and gain global market share – it is now less about capturing lower production costs (17%).
• Most companies want to gain a foothold for long term success. Half are looking for greater global market share.
• Four out of ten have followed their customers to Emerging Markets.
• A third are being pushed into Emerging Markets by lack of growth or profit in more established markets.
• A quarter are going into Emerging Markets to diversify risks, and the same number to tap into short to medium term profits and growth. Question: What are the main reasons for investing in Emerging Markets
for your company? N=428.
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53%
29%
15%
18%
23%
19%
14%
22%
15%
7%
14%
31%
3%
3%
7%
1%
5%
8%
4%
4%
5%
2012
2014
2017
0%-10% 11%-20% 21%-30% 31%-50% 51%-60% 61%-80% 81%-100%
Half of the companies say at least 30% of global revenues will come from Emerging Markets by 2017
21
One fifth say Emerging Markets will account for 50% of revenues within five years
% Global Revenue from Emerging Markets (2012-2017)
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey.
Emerging Markets aspirations to 2017
Question: What % of your company's global revenue do you expect to come from Emerging Markets? N=277 (2012), N=268 (2014), N=263 (2017).
Zero revenue from Emerging Markets
(2012-2017)
7%
1%
1%
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Technology sector expects the most growth in Emerging Markets, followed by Logistics and Chemical
22
The Resources sector will source the most revenue from Emerging markets; Consumer, Finance and Healthcare the least
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017
Emerging Markets aspirations to 2017
17%
19%
19%
35%
15%
15%
13%
18%
20%
24%
24%
29%
25%
45%
18%
21%
19%
27%
32%
30%
36%
38%
37%
53%
26%
28%
27%
37%
48%
41%
2017 2014 2012
Question: What share of your company's global revenue do you expect to come from Emerging Markets? N=277 (2012), N=268 (2014), N=263 (2017).
% Average Global Revenue from Emerging Markets by Industry (2012-2017)
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US companies are slightly behind the curve on tapping into Emerging Markets revenues
23
Smaller companies are expecting a greater share of revenue from Emerging Markets than larger ones
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017
Emerging Markets aspirations to 2017
Question: What share of your company's global revenue do you expect to come from Emerging Markets? N=256 (Total of 2017): N=86(<0.1 bil Euro), N=62 (0.1 bil-<1 bil Euro), N=108 (=/>1 bil Euro). .
% Average Expected Global Revenue from Emerging Markets (2017)
33%
38%
42%
=/> 1bil Euro
0.1 bil - < 1bil Euro
<0.1 bil Euro
By size of annual revenue
34%
36%
37%
38%
US HQ
Latin American HQ
European HQ
Asian HQ
By location of headquarters
Question: What share of your company's global revenue do you expect to come from Emerging Markets? N=245 (Total of 2017): N=63 (US), N=94 (Europe), N=27 (Latin America), N=61 (Asia).
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Emerging Markets investment experiences and motivations
TOTAL
(N=425) (N=80) (N=58) (N=49) (N=41) (N=39) (N=38) (N=34) (N=24) (N=20) (N=17)
Distribution / access to customers 35% 41% 36% 22% 37% 49% 37% 15% 21% 50% 29%
Adapting to local culture 28% 25% 34% 37% 24% 26% 11% 29% 17% 25% 24%
Building a strong brand 24% 18% 26% 33% 24% 44% 26% 9% 25% 20% 12%
Local partner(s) 24% 20% 19% 37% 32% 15% 29% 21% 21% 15% 12%
Government relations 23% 13% 21% 33% 32% 13% 24% 32% 21% 5% 24%
Pricing 23% 24% 22% 16% 12% 31% 34% 15% 38% 30% 24%
Localized competitive positioning 22% 21% 28% 20% 2% 10% 32% 18% 38% 35% 35%
Product/service quality 21% 21% 21% 20% 27% 21% 24% 12% 4% 35% 29%
Flexibility as the market develops 20% 19% 22% 18% 17% 15% 8% 21% 25% 10% 18%
Localization of products/services 18% 26% 26% 8% 7% 18% 13% 6% 38% 20% 18%
Finding the right talent 18% 16% 16% 18% 12% 13% 18% 24% 21% 15% 12%
Local business relationships/lobbying 17% 16% 12% 22% 17% 13% 11% 21% 13% 20% 18%
Access to customers is the biggest single Emerging Markets success factor across industries
25
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey. Respondents were allowed to select more than one.
Question: In your industry, what 3 key factors will determine which foreign companies succeed in Emerging Markets to 2017? N=425.
Success Factors for Emerging Markets (2012-2017)
Success Factors
Brand is very important for the Consumer sector; localization least important for the Finance sector
Investment experiences and motivations
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TOTAL
(N=425) (N=80) (N=58) (N=49) (N=41) (N=39) (N=38) (N=34) (N=24) (N=20) (N=17)
Bureaucracy and red tape 35% 23% 34% 41% 46% 44% 29% 50% 13% 20% 41%
Corruption / weak rule of law 33% 29% 33% 37% 41% 26% 39% 44% 21% 10% 18%
Competition from local companies 28% 38% 21% 29% 15% 28% 42% 9% 46% 30% 24%
Competition from other foreign companies 26% 33% 21% 31% 12% 13% 24% 18% 54% 20% 29%
Economic volatility 23% 28% 14% 22% 37% 26% 24% 21% 21% 20% 24%
Regulations and taxes 23% 25% 16% 16% 22% 33% 26% 26% 21% 25% 29%
Lack of local market understanding at HQ 21% 25% 19% 18% 32% 18% 18% 12% 21% 25% 12%
Political risk 20% 23% 16% 10% 24% 18% 5% 38% 8% 35% 29%
Poor infrastructure 19% 19% 24% 16% 20% 15% 13% 15% 8% 30% 35%
Lack of reliable market intelligence 18% 14% 29% 16% 17% 15% 21% 12% 13% 15% 29%
Unreliable local partners 17% 14% 17% 24% 20% 18% 18% 9% 21% 0% 18%
26 Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey. Respondents were allowed to select more than one.
Investment experiences and motivations
Question: In your industry, what are the 3 biggest threats to succeeding in Emerging Markets in the next 5 years (TO 2017)? N=431.
Threats in Emerging Markets (2012-2017)
Biggest threat across industries is bureaucracy; competition a concern for Auto and Manufacturing
Threats
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Majority of companies stumble in Emerging Markets
27
Most say they would like to have done something differently
Investment experiences and motivations
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey,
• Only 9% of the respondents say they did not make any mistakes in their Emerging Markets strategy.
• 91% say they would like to have done something differently in how they planned and executed their Emerging Markets strategy.
• Some would like to have made greater efforts to adapt to local conditions.
• Others would have entered Emerging Markets earlier or ensured they had better local market intelligence and due diligence.
Emerging Markets strategy as of 2012
9% Satisfied with strategy
91% Could have done something better
Question: Which one aspect of your Emerging Markets strategy would you change if you could go back in time, and how? (Will change vs. Will not change) N=380
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Not adapting more to local conditions and prices is the most widespread mistake
28
Investment experiences and motivations
Aspects companies would like to have approached differently
Entering too late and having insufficient market intelligence are other common regrets
24% 18%
17% 7% 6%
5% 3% 3%
3% 2% 2%
1%
Adapted better to local market/prices
Entered more quickly
Conducted better intelligence/due diligence
Sought local partners
Expedited/improved decision making process
Built stronger local talent/expertise
Addressed supply chain issues first
Cultivated stronger local relationships (gov't, partners)
Entered more slowly
Chosen different/fewer emerging markets
Dedicated more resources
Entered directly without partner
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey.
Question: Which one aspect of your Emerging Markets strategy would you change if you could go back in time, and how? N=380
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Emerging Markets intelligence
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Availability, accuracy and completeness of intelligence on Emerging Markets is an issue for many
30
60% of companies find decision making is delayed because of lack of information.
Emerging Markets intelligence
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey, N=431.
• 53% say that information on Emerging Markets is not readily available in their organizations.
• 75% doubt the accuracy and completeness of the information.
• While 50% say that decision making in their organizations is efficient in general, 48% say that decisions on Emerging Markets are delayed due to lack of information.
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Big gap between the need for accurate Emerging Markets intelligence and its availability
31
Importance and availability of information on Emerging Markets
86% say that accurate market intelligence is critical but only 24% say it is always available
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey, N=431.
Emerging Markets intelligence
42%
6%
3%
6%
44%
18%
10%
22%
9%
23%
12%
24%
4%
38%
40%
34%
1%
15%
35%
14%
Accurate market sizing and growth estimates are critical for our Emerging Markets strategy
Information on Emerging Markets is always readily available in our organization
Inaccurate or incomplete information about Emerging Markets is never a problem
Large volumes or overflow of information about Emerging Markets is never a problem
Strongly agree Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree
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8%
3%
6%
39%
21%
25%
19%
19%
21%
28%
39%
37%
6%
18%
11%
6%
3%
6%
18%
10%
22%
23%
12%
24%
38%
40%
34%
15%
35%
14%
Information on these Markets is always readily available in our organization
Inaccurate or incomplete information about these Markets is never a problem
Large volumes or overflow of information about these Markets is never a problem
Strongly agree Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree
Information for Emerging Markets is not as available as for global markets
32
Information on Emerging Markets vs. Global Markets
Availability and accuracy of market intelligence varies between Emerging & Global Markets
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey, N=431.
Emerging Markets All markets
Emerging Markets intelligence
www.globalintelligence.com
18%
17%
4%
37%
33%
18%
21%
31%
30%
17%
17%
38%
7%
2%
10%
All executive decisions on Emerging Markets are supported by market intelligence
Executive decision making is very efficient in our Emerging Markets organization
Our decisions are never delayed because we are missing information about Emerging
Markets
Strongly agree Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree
Lack of information delays decisions for half the companies operating in Emerging Markets
33
Decision making on Emerging Markets
This is one underlying factor behind strategic mistakes made in Emerging Markets
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey, N=431.
Emerging Markets intelligence
www.globalintelligence.com
19%
15%
6%
46%
51%
30%
16%
20%
24%
16%
12%
33%
3%
2%
7%
Decisions are less supported by intelligence than they are in mature markets
34
18%
17%
4%
37%
33%
18%
21%
31%
30%
17%
17%
38%
7%
2%
10%
All executive decisions on these Markets are supported by market intelligence
Executive decision making is very efficient in these Market organization
Our decisions are never delayed because we are missing information about these
Markets
Strongly agree Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree
Decision making on Emerging Markets vs. Global Markets
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey, N=431.
Emerging Markets All markets
Emerging Markets intelligence
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Appendix: Survey Respondents
Over 400 large and mid-sized global companies took part in the survey 58% have at least 1,000 employees
35%
23%
16%
10%
16%
< $0.13 bil/0.1 bil Euro
$0.13-1.3 bil/0.1-1 bil Euro
$1.3-$6.5 bil/1–5 bil Euro
$6.5-$13 bil/5-10 bil Euro
> $13 bil/ >10 bil Euro
% of respondents by annual revenue
36 www.globalintelligence.com
38%
24%
21%
11%
6%
Europe
North America
Asia
Latin America
Africa & Middle East
% of respondents by location of headquarters
Companies taking part in the survey represented a wide spread of industry sectors
19%
13%
11%
10%
9%
9%
8%
5%
5%
4%
3%
3%
1%
Manufacturing & Industrial
Telecom, Tech & Media
Professional Services
Financial Services
Consumer & Retail
Pharma & Healthcare
Energy, Resources & Envir
Automotive
Chemicals
Logistics & Transportation
Others
Construction & Property Dev't
Private Equity
% of respondents by industry
37 www.globalintelligence.com
www.globalintelligence.com
About GIA
GIA is a strategic market intelligence and advisory group
Global Intelligence Alliance (GIA) is the preferred partner for organizations seeking to understand, compete and grow in international markets.
Our industry expertise and coverage of over 100 countries enables our customers to make better informed decisions worldwide.
GIA Group has 11 offices on 4 continents. Together with affiliated GIA Member companies, certified GIA Research Partners and consultants, GIA provides access to local knowledge in over 100 countries.
All GIA Network companies adhere to GIA’s Research and Analysis Quality System as well as the SCIP Code of Ethics.
www.globalintelligence.com | [email protected]
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We help you make better informed decisions
Customized market monitoring solution to boost awareness and collaboration in your organization
Analytical insight and advisory, enabling you to compete more effectively and grow into new opportunities
Valuable information about your markets and industry, on-demand around the world
High-quality intelligence software that enables full control of the intelligence process
A suite of consulting services, events and online resources that help you set up and develop world class intelligence programs
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International Global Intelligence Alliance Group [email protected] Brazil Global Intelligence Alliance Latin America [email protected] Canada Global Intelligence Alliance Canada [email protected] Czech Republic EasyLink Business Services [email protected] China Global Intelligence Alliance China [email protected] Finland Global Intelligence Alliance Finland [email protected] France RV Conseil [email protected] Germany Global Intelligence Alliance Germany [email protected] Hong Kong Global Intelligence Alliance Hong Kong [email protected] India Global Intelligence Alliance India [email protected] Japan McRBC [email protected] Korea 3mecca [email protected] Latvia Gateway Baltic [email protected] Mexico Americas Market Intelligence Mexico [email protected] Netherlands Global Intelligence Alliance Netherlands [email protected] Portugal Growth Setting [email protected] Russia ALT R&C [email protected] Singapore Global Intelligence Alliance Singapore [email protected] South Africa Butterfly Effect Intelligence [email protected] Tunisia RV Conseil Tunisie [email protected] UK Global Intelligence Alliance UK [email protected] United Arab Emirates GCC Consulting [email protected] USA East Coast Global Intelligence Alliance USA East Coast [email protected] USA Florida Americas Market Intelligence Miami [email protected] USA Midwest Global Intelligence Alliance USA Midwest [email protected]
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