market research in asia pacific
DESCRIPTION
Market Research in Asia Pacific. David Richardson (TNS 대표 이사 ). w here are the open roads ?. w here are the pit stops?. Global Long Term Industry Growth. 17.5 b. 9 b. In US dollar terms, has doubled over the past 10 years. 7.5% per annum But below 5% during the past 4 years. - PowerPoint PPT PresentationTRANSCRIPT
Market Research in Asia Pacific
• David Richardson(TNS 대표 이사 )
2004/11/5KOSOMAR 세미나 2/37
where are the pit stops?here are the pit stops?
where are the open roads ?here are the open roads ?
2004/11/5KOSOMAR 세미나 3/37
9b
17.5b
Global Long Term Industry Growth
2004/11/5KOSOMAR 세미나 4/37
Global growth
In US dollar terms, has doubled over the past 10 years.
7.5% per annum
But below 5% during the past 4 years.
MR growth nearly doubled GDP growth
2004/11/5KOSOMAR 세미나 5/37
Long term global growth to be 4-5% per annum
market research growthconsiderably stronger than
advertising growth
2004/11/5KOSOMAR 세미나 6/37
Global Long Term Industry Growth
9b
17.5b
2004/11/5KOSOMAR 세미나 7/37
Growth in Asia Pacific in US dollars (bn)
Doesn’t appear so spectacular in dollars !Doesn’t appear so spectacular in dollars !
1998-2003
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Growth in local currency
But better in local currency !
Country Past 5 years
Japan 2%
China/Korea/Indo/Viet 20%
India/Phil/Thai 10-15%
Aus/Mal/NZ 5-10%
Twn/Sin/HK 5±%
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World Market Research Market US$mn
1313%%
Total 17.5bnTotal 17.5bn
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This is below our
fair share!
2004/11/5KOSOMAR 세미나 11/37
Asia Share of worlds’ goods & servicesAsia Share of worlds’ goods & services
and….
GDP 28%
Population 58%
Automobiles 10%
Travel 25%
Advertising 25%
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countries in Asia Pacific
spend their fair share on
advertising !
2004/11/5KOSOMAR 세미나 13/37
Advertising Share of GDP (%)
CHINAINDIAVIETNAM
GERMANYMALAYSIA
MSCEE makea circle aroundKOREATAIWANSPAIN
THAI LANDUS , UK AUSTRALIAPHILIPPINESHONG KONG
FRANCEITALYDENMARKJAPANSWEDEN
2004/11/5KOSOMAR 세미나 14/37
but not on
market research
2004/11/5KOSOMAR 세미나 15/37
Market Research Share of GDP (%)
INDIACHINA
VIETNAMINDONESIA
MSCEE makea circle aroundKOREA
TWN/THAIJAPAN
MALAYSIAPHILIPPINES
SPAINUS
DENMARK
GERMANYAUSTRALIA
NZUK
SWEDENFRANCE
HONG KONGSINGAPORE
2004/11/5KOSOMAR 세미나 16/37
Research Market compared with GDP
0
200
400
600
800
1000
1200
1400
1600
1800
2000
0 0.5 1 1.5 2 2.5 3 3.5 4
Total GDP (trillion)
UK
Germany
France
ItalySpain
Sweden
Japan
2004/11/5KOSOMAR 세미나 17/37
Research Market compared with GDP
020
4060
80100120
140160
180200220
240260
280300
0 100 200 300 400 500 600 700 800 900 1000 1100 1200
Total GDP US$bn
Market R
esearch m
arket (US
$mn
)
ChinaChina
AustraliaAustralia
Asia 2002
Thailand Thailand IndiaIndia
Indonesia Indonesia VietnamVietnam
Malaysia/PhilippinesMalaysia/Philippines
KoreaKorea
Hong KongHong Kong
Singapore Singapore
NZNZ
Taiwan Taiwan
2004/11/5KOSOMAR 세미나 18/37
has been shown worldwide that market research growth
In Asia, significant GDP growth forecast for the next 3 years.In Asia, significant GDP growth forecast for the next 3 years.
exceeds GDP growth
2004/11/5KOSOMAR 세미나 19/37
First conclusion
Not too many pit stops Not too many pit stops for the industry in Apacfor the industry in Apac
Will be speedier than Will be speedier than the rest of worldthe rest of world
2004/11/5KOSOMAR 세미나 20/37
But where is the pack ?
2004/11/5KOSOMAR 세미나 21/37
The big FOUR 2003
CompanyMarket Share Excl Japan$Million $Million
ACN 304 13% 256 20%
TNS 155 7% 152 12%
RI 107 5% 75 6%
Synovate 67 3% 59 5%
Total 4 633 28% 542 43%
Four largest firms account for +43% of research revenues outside of JAPAN
# Using industry association figures, annual reports, and estimates
2004/11/5KOSOMAR 세미나 22/37
Drivers of g
rowth
Drivers of g
rowth
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The bottom line: Profit for Research Firms
“The bottom line in market research is very low compared to other industries”
Adrian Chedore,CEO of Synovate
- Quote from Research World
2004/11/5KOSOMAR 세미나 24/37
The bottom line: Profit for Research Firms
Low profits for research firms deprives our industry with the funds needed to invest in our people, our systems and our future
If we fail to increase the profitability of our industry we will lose out to higher profit consulting, advertising, DB, CRM and other industries
2004/11/5KOSOMAR 세미나 25/37
Low profits are caused partly by low fees charged to clients but also due to an under appreciation of our most valuable asset: our peoples time
To rectify this, most major research firms are shifting to better time management systems to set prices and linking performance evaluations to a full time cost basis rather than simple revenue or contribution measures
2004/11/5KOSOMAR 세미나 26/37
Focus on Usability
“Today’s and tomorrow’sclients-are focusing not so much on services as on usability”
Eric Salama, Chairmanand CEO of Kantar
(Milward Brown – Research International)- Quote from Research World
2004/11/5KOSOMAR 세미나 27/37
Focus on Usability
Clients do not care as much as they used to on how we do research... That’s our job
Usability requires us as researchers to be experts in NPD, advertising and brand equity, stakeholder management and distribution More marketing expertise
More experts in their industry
More expertise in their company
Better communicators
Better leaders
2004/11/5KOSOMAR 세미나 28/37
From Description to Prediction
“We have seen a move from research being used almost exclusively in the descriptive sense to increasingly it being used in the predictive sense and that is where the real value lies”
Mike Kirkham, CEO TNS
- Quote from Research World
2004/11/5KOSOMAR 세미나 29/37
From Description to Prediction
Reflecting today’s rapid pace of change, clients are demanding less of a snapshot of a market but more of a continuous moving picture
The need of our clients for their research to enable them to answer predictive “What if…” questions
andand
2004/11/5KOSOMAR 세미나 30/37
Growth beyond FMCG
“About a decade ago, market research services were being used primarily by the FMCG industry
In recent years the scope of actual and potential clients has widened enormously”
Dr. Klaus Wubbenhorst,CEO of GFK
- Quote from Research World
2004/11/5KOSOMAR 세미나 31/37
Growth beyond FMCG
Today - financial institutions, IT and telecom firms, healthcare organizations, durables and government services have become the global drivers of economic growth
We as experts in marketing and understanding customer needs can play a leading role in creating best practices, transferred from the FMCG arena, to these new modern day marketers
2004/11/5KOSOMAR 세미나 32/37
Globalization of the Marketing Arena
Clients are becoming global, are acting global and demand research firms to become global More research buying decisions in the centres
Demand consolidated multi-country reports, more and more often in English
Demand faster and faster time tables made possible only with globally synchronized systems
Expect advanced research models executed globally
Insist on better use of technology and cost efficiencies both within the research firm and in how the client accesses the research
Clients are becoming global, are acting global and demand research firms to become global More research buying decisions in the centres
Demand consolidated multi-country reports, more and more often in English
Demand faster and faster time tables made possible only with globally synchronized systems
Expect advanced research models executed globally
Insist on better use of technology and cost efficiencies both within the research firm and in how the client accesses the research
2004/11/5KOSOMAR 세미나 33/37
Globalization Consolidation
Today’s the top 25 research firms account for 65% of the total world research
Consolidation has been rapid. TNS for example has grown from $ 350million in 1997 to $1.700 billion in 2003
If one looks at concentration in the insurance, advertising and other industries plus actual past trends in our industry, the top 25 firms could account for 80% or 90% of the world total by 2010
Today’s the top 25 research firms account for 65% of the total world research
Consolidation has been rapid. TNS for example has grown from $ 350million in 1997 to $1.700 billion in 2003
If one looks at concentration in the insurance, advertising and other industries plus actual past trends in our industry, the top 25 firms could account for 80% or 90% of the world total by 2010
2004/11/5KOSOMAR 세미나 34/37
Globalization Consolidation
“There are companies such as VNU(Nielson), TNS and ourselves, then a big fall to those like IPSOS, GFK, NOP and Synovate. I think that over time, they will merge, acquire or be acquired – but they will find it hard to thrive there in the middle ground”
Eric Salama, Chairmanand CEO of Kantar
(Milward Brown – Research International)- Quote from Research World
2004/11/5KOSOMAR 세미나 35/37
Technology Investments
The image of market research firms still tends to be of researchers sitting at desks with interviewers doing face to face interviews
In the late 1980’s we added computers
In the mid 1990’s we began replacing face to face interviewers with CATI, added servers and networked systems in our offices and invested in digital scanning and other automated systems
By 2000 the major firms began linking their national systems together and integrating systems within their offices via ERP systems
Today most major firms are eliminating borders and establishing global CATI, access panels, data processing, database centers in regional centers or places like India
All these improvements require lots of capital and enable the researcher facing the client the power to command more and more of that firm’s global resources, to do the job better, faster and more economically
The image of market research firms still tends to be of researchers sitting at desks with interviewers doing face to face interviews
In the late 1980’s we added computers
In the mid 1990’s we began replacing face to face interviewers with CATI, added servers and networked systems in our offices and invested in digital scanning and other automated systems
By 2000 the major firms began linking their national systems together and integrating systems within their offices via ERP systems
Today most major firms are eliminating borders and establishing global CATI, access panels, data processing, database centers in regional centers or places like India
All these improvements require lots of capital and enable the researcher facing the client the power to command more and more of that firm’s global resources, to do the job better, faster and more economically
2004/11/5KOSOMAR 세미나 36/37
The Future of our Industry
“It’s a fantastic opportunity.
What we’ll do in the end is add value by consultancy
Value should be added every step of the way and I believe that is where the research sector has a great advantage over consultancies”
Adrian Chedore,CEO of Synovate
- Quote from Research World
2004/11/5KOSOMAR 세미나 37/37
Thank you !