Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

More innovation needed from manufacturers if they are to reap rewards in emerging markets

A new report by business advisory firm Deloitte is warning that manufacturers must tailor their products, pricing and strategies specifically to Asian, Eastern European and Latin American countries, if they are to realise the enormous potential of these emerging economies.
More than half of global manufacturers (56%) expect to substantially grow revenues in emerging markets over the next three years, with nearly three-quarters anticipating significant increases in China. However, just 29% of the companies surveyed currently enjoy higher margins in emerging markets than in developed ones. Of those that do, 54% are providing different product features to the ones offered in their home markets. Jane Lodge, UK manufacturing industry leader at Deloitte, said 'Long-term success requires more than simply tinkering with existing products, lowering prices, and developing new sales channels. Manufacturers must understand the unique needs of each local market and develop new offerings accordingly.' Key to achieving success in emerging markets appears to be research and development (R&D) - 49% of the companies selling new products conducted the R&D locally. The executives cited the 'need to understand the local market', 'faster time to market' and 'lower R&D costs' as the top three reasons for investing in local facilities. For a free copy of the Innovation in Emerging Markets: Strategies for Achieving Commercial Success report, please visit www.deloitte.com/manufacturing . Related links:Today's top stories

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.

Related Jobs