Deloitte Identifies Strategies to Generate Revenue in Emerging Markets

Dec. 10, 2011
Many companies are focused on emerging markets to fuel growth. But in order to achieve success, these companies typically must clear numerous and sometimes daunting hurdles. For example, Deloitte recently surveyed business leaders from companies ...

Many companies are focused on emerging markets to fuel growth. But in order to achieve success, these companies typically must clear numerous and sometimes daunting hurdles.

For example, Deloitte recently surveyed business leaders from companies expanding into developing economies. They said their primary challenges to increasing revenues in emerging markets are:


providing products and services at affordable prices that meet customer needs (43 percent)


competition from local businesses (40 percent)


brand awareness in the market (40 percent)


navigating protectionist policies and government bureaucracy (39 percent)


Clearly, each individual business situation is different, and so each company that eyes expansion into emerging markets must carefully weigh options and design strategies around the special requirements of each country's consumer and regulatory environments.

The Deloitte study found companies with successful emerging markets operations implement certain strategies to generate revenue. They:


Use local sales/service support centers (62 percent)


Employ company-owned sales and/or distribution (60 percent)


Design products/services specifically for the country or region (60 percent)


Offer a different value proposition for customers/consumers (59 percent)


Employ a company-owned supply chain (56 percent)


"Introducing a new product that responds to customer needs while educating customers and their governments about the offering is complex," said Simon McLain, also with the Deloitte emerging market growth strategies practice. "To increase the likelihood of long-term success, executives should customize their strategies to meet the specific demands of each country, even regions within a country. It's time to stop focusing on emerging markets as a group and start focusing on specific countries individually."

It's worth noting that the survey also found opportunities remain abundant in the BRIC, minus Russia. Among 10 leading emerging markets, executives surveyed were most likely to expect revenue increases of 25 percent or more over the next three years in Brazil, India and China.

More information about the report is available here.

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