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www.globalintelligence.com All Rights Reserved ©2012
Business Perspectives on Emerging Markets 2012-2017
Global survey (Brazilian results), June 2012
Latin America has not been spared the effects of the current global economic crisis. Even with strong domestic markets, a decrease in external demand could spell trouble for Brazilian companies. Moreover, 66% of the global companies in GIA’s Business Perspectives on Emerging Markets 2012-2017 Report say that Brazil is one of their top target markets to 2017, promising more competition from foreign players on their own home turf.
So what are Brazilian companies doing to target opportunities in other Emerging Markets? The Brazilian companies surveyed by GIA expect an average of 38% of their global revenues to come from Emerging Markets by 2017, but over 80% admit that they could have done some things better in their Emerging Markets strategies.
With this study, we share the strategic ambitions, concerns and challenges facing Brazilian companies in other fast moving markets. I wish you an insightful read. We welcome you to share your thoughts with me or any of my colleagues around the world. Our mission is to help companies understand, compete and grow in international markets.
For the global findings or other country reports, please visit http://bit.ly/GIA2012 www.globalintelligence.com | [email protected]
Business Perspectives on Emerging Markets 2012-2017 Why this study is important
Natan Rodeguero Vice-President, Latin America Global Intelligence Alliance
www.globalintelligence.com 2
Executive Summary: Brazilian companies prefer to invest in Emerging Markets in their own region But they lag behind their global peers in using Market Intelligence and decision making is often delayed as a result
3 www.globalintelligence.com
Emerging Markets focus and expectations
• Brazil, Russia, India and China are the top four most important Emerging Markets for Brazilian companies to 2017, with their country as top priority.
• Argentina and Mexico (38%) are the next upcoming second-tier Emerging Markets after BRIC, followed by Chile and South Arica (28%).
• Brazilian companies chose more African and Middle Eastern countries amongst their top 25 ranked Emerging Markets, compared to other global companies.
• 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%).
Motivations and concerns
• Brazilian companies’ Emerging Markets strategies are primarily driven by the desire to gain a foothold in future large markets and gain global market share.
• 34% of Brazilian companies’ customers are in Emerging Markets. 21% want to diversify risks in Emerging Markets and 21% think there is a lack of growth/profit in established markets.
• 86% would have done things differently with regards to their Emerging Markets strategy. Almost a quarter of them would have made greater efforts to conduct intelligence/due diligence. A fifth would have adapted local markets/prices better (20%).
• Brazilian companies appreciate the value of market intelligence, with 86% saying that accurate market sizing and growth estimates are critical to their Emerging Markets Strategy. However, only 34% use market intelligence to support their decisions on Emerging Markets, versus a global average of 55%.
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How can Brazilian 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, 29 of which were companies headquartered in Brazil.
• 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 Brazilian respondents’ primary job functions included sales and marketing (24%), senior management (21%), market/competitive intelligence (17%), strategic planning/business development / research and development / product management (10%), including others.
• Approximately 30% of the Brazilian companies in the survey earned more than $1.3 billion (1 billion Euro) in annual revenue and about 50% have more than 1,000 employees each.
• See Appendix for more details about the survey sample.
29 Brazilian companies 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 13 BRL / $6.50 for every completed survey.
• The donation came close to 5,670 BRL / $2,800 , 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
7 www.globalintelligence.com
• 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 for Brazilian companies to 2017
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Brazilian companies define Emerging Markets based on BRIICS or BRIC
9
Stage of economic development is another popular definition of emerging markets
How Brazilian Companies Define Emerging Markets
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017. Respondents were allowed to select more than one.
Question: How do you define Emerging Markets in your company? N=29 (Brazilian companies).
Emerging Markets focus to 2017 (Brazilian companies)
24%
20%
18%
11%
9%
6%
4%
4%
2%
2%
BRIICS (BRIC, Indonesia, S. Africa)
Stage of economic development
BRIC (Brazil, Russia, India, China)
Market growth rate
By geography (eg. in region X)
Market not in US, Western Europe, Japan
Penetration level of product/service
Proprietary listing eg. FTSE, S&P
Penetration level by my company
Penetration level by multinationals
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Global companies pick Emerging Markets in Asia, Latin America, Russia, South Africa & Turkey as top targets
10
Top 10 Emerging Markets (2012-2017) by % all companies
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 (All companies).
Emerging Markets focus to 2017 (All companies)
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Brazilian companies place less focus on South East Asian markets than global peers
11
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey.
Top 10 Emerging Markets (2012-2017) by % Brazilian companies
Question: Which are the top 5 Emerging Markets for your industry over the next 5 years? N=29 (Brazilian companies).
Emerging Markets focus to 2017 (Brazilian companies)
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Brazilian companies favor BRIC as top Emerging Markets
12
Brazilian companies consider Brazil as their number one Emerging Market
Top Four Emerging Markets (2012-2017)
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017. 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 the top four most important Emerging Markets for Brazilian companies to 2017.
• The four BRIC countries are not expected to be equally important, with Russia being least favored (45%). Meanwhile, Brazilian companies consider their country as their number one Emerging Market.
• However, inconsistently, according to the IMF, average growth rates for 2012-2017* are 7.4% for India, 3.7% for Brazil, 8.5% for China, and 3.9% for Russia.
• Brazil seems to be finding favor for reasons other than its growth rates.
Question: Which are the top 5 Emerging Markets for your industry over the next 5 years? N=29 (Brazilian companies).
82.8%
62.1%
55.2%
44.8%
Brazil
India
China
Russia
All companies Brazilian companies
Brazil 66.3%
India 67.0%
China 66.0%
Russia 40.0%
Emerging Markets focus to 2017 (Brazilian companies)
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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
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
Emerging Markets focus to 2017 (All companies)
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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
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
Emerging Markets focus to 2017 (All companies)
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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
Latin American companies are less adventurous when it comes to looking outside their home region
15
European companies are prioritizing Asia and Latin America despite their proximity to Russia
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 (All companies)
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Brazilian companies’ second tier Emerging Markets span the globe, led by Argentina and Mexico
16
Emerging Markets after BRIC (2012-2017)
Africa/Middle East Asia Europe Latin America
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey.
• Most of the 25 non-BRIC Emerging Markets that Brazilian companies plan to target in 2012-2017 are in developing economies.
• Argentina and Mexico (38%) are the next upcoming second-tier Emerging Markets after BRIC, followed by Chile and South Arica (28%).
• Brazilian companies chose more African and Middle Eastern countries amongst their top 25 ranked Emerging Markets, compared to other global companies.
• Moreover, they chose three of “The Four Asian Dragons”, Hong Kong, Singapore, South Korea and “The Four Asian Tigers” as their Emerging Markets. Question: Which are the top 5 Emerging Markets for your industry over
the next 5 years (to 2017)? N=29 (Brazilian companies).
Country % 5 Argentina/Mexico 37.9%
6 Chile 27.6%
6 South Africa 27.6%
8 Colombia 24.1%
9 Peru 20.7%
10 Turkey 10.3%
11 Indonesia 6.9%
12 Czech Republic / Hungary / Lithuania / Poland / Romania 3.4%
12 Hong Kong / Malaysia / Pakistan / Philippines / Singapore/ S Korea/ Thailand / Vietnam
3.4%
25 Morocco / Nigeria / Oman / Saudi Arabia 3.4%
Emerging Markets focus to 2017 (Brazilian companies)
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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
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
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 (Total): N=95 (US), N=161 (Europe), N=44 (Latin America), N=95 (Asia).
Top 10 Secondary Emerging Markets by Location of Headquarters (2012-2017)
Emerging Markets focus to 2017 (All companies)
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Emerging Markets investment experiences and motivations
(Brazilian companies)
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50
60
30
40
10
62% Gain foothold for long term success in large future market Gain global market share
34% Our customers are there Tap into short/medium term growth/profit
21% Diversify risks Lack of growth/profit in established markets
Brazilian companies are investing in Emerging Markets to establish a presence in future major markets
19
17% look to Emerging Markets as a low cost supply base
Motivations for investing in Emerging Markets
Experiences & Motivations (Brazilian companies)
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey. Respondents were allowed to select more than one.
• Brazilian companies’ Emerging Markets strategies are primarily driven by the desire to gain a foothold in future large markets and gain global market share.
• It has become less about capturing lower production costs (17%).
• 34% of Brazilian companies’ customers are in Emerging Markets.
• 21% want to diversify risks in Emerging Markets and 21% think there is a lack of growth/profit in established markets.
• 17% acknowledge their competitors are in Emerging Markets.
Question: What are the main reasons for investing in Emerging Markets for your company? N=29 (Brazilian companies).
20 17% Establish low cost supply base Our competitors are there 14% CEO/board directive
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45%
30%
21%
14%
15%
21%
14%
15%
16%
5%
10%
11%
5%
5%
11%
10%
4%
17%
15%
16%
2012
2014
2017
0%-10% 11%-20% 21%-30% 31%-50% 51%-60% 61%-80% 81%-100%
Proportion of global revenues from Emerging Markets will continue to grow through 2017
20
All the Brazilian companies surveyed would have entered other Emerging Markets by 2017
% Global Revenue from Emerging Markets (2012-2017)
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017.
Experiences & Motivations (Brazilian companies)
Question: What % of your company's global revenue do you expect to come from Emerging Markets? N=21 (2012), N=23 (2014), N=21 (2017).
Zero Revenue from Emerging Markets
4.76%
0.00%
0.00%
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Many Brazilian companies could have done something differently in their Emerging Markets strategies
21
More than 40% would have conducted intelligence/due diligence or adapted to local market conditions
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey,
• 16% of the Brazilian companies say they are satisfied with their Emerging Markets strategy. This is higher than the global average (9%).
• 86% would have done things differently with regards to their Emerging Markets strategy.
• Brazilian companies primarily have two main regrets.
• Almost a quarter of them would have made greater efforts to conduct intelligence/due diligence.
• A fifth would have adapted local markets/prices better (20%).
Emerging Markets strategy as of 2012
16% Satisfied with strategy
84% Would have done things differently
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=25 (Brazilian companies)
Experiences & Motivations (Brazilian companies)
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24% of Brazilian companies say they should have conducted intelligence/due diligence better
22
Aspects Brazilian companies (84%) would like to have approached differently
Not adapting to the local emerging market conditions/prices second most commonly cited mistake
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=25 (Brazilian companies)
24%
20%
12%
8%
8%
4%
4%
4%
Conducted better intelligence/due diligence
Adapted better to local market/prices
Cultivated stronger local relationships (gov't, partners)
Expedited/improved decision making process
Sought local partners
Addressed supply chain issues first
Dedicated more resources
Entered more quickly
Experiences & Motivations (Brazilian companies)
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Emerging Markets investment experiences and motivations
(Global companies)
Technology sector expects the most growth in Emerging Markets, followed by Logistics and Chemical
24
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
Experiences & Motivations (All companies)
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)
US companies are slightly behind the curve on tapping into Emerging Markets revenues
25
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
Experiences & Motivations (All companies)
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).
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
26
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(All companies).
Experiences & Motivations (All companies)
Success Factors for Emerging Markets (2012-2017)
Success Factors
Brand is very important for the Consumer sector; localization least important for the Finance sector
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%
27 Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey. Respondents were allowed to select more than one.
Experiences & Motivations (All companies)
Question: In your industry, what are the 3 biggest threats to succeeding in Emerging Markets in the next 5 years (TO 2017)? N=431(All companies).
Threats in Emerging Markets (2012-2017)
Biggest threat across industries is bureaucracy; competition a concern for Auto and Manufacturing
Threats
China, India and Brazil look good to most industry sectors; Russia has less widespread appeal
28
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 (All companies).
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
Experiences & Motivations (All companies)
Vietnam stands out for Consumer, Logistics and Resources sectors, Mexico for Healthcare
29
Chemical sector very focused on Indonesia and South Africa, Consumer & Retail on SE Asia
Experiences & Motivations (All companies)
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 (All companies).
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 intelligence
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Availability, accuracy and completeness of intelligence on Emerging Markets are issues for many
31
Almost half of Brazilian companies find decision making is delayed due to lack of information.
Emerging Markets intelligence
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey, N=29 (Brazilian companies).
• Brazilian companies appreciate the value of market intelligence, with 86% saying that accurate market sizing and growth estimates are critical to their Emerging Markets Strategy.
• However, only 34% use market intelligence to support their decisions on Emerging Markets, versus a global average of 55%.
• Moreover, Brazilian companies appear to lack readily available Emerging Markets information more than their global peers. 66% say that information on Emerging Markets is not readily available in their organizations, compared to the global average of 53%.
• 48% say lack of intelligence about Emerging Markets delays their decision making, which is the same as the global average. 41% say decision making on Emerging Markets in their organizations is efficient.
• However, 90% doubt the accuracy and completeness of the information they have on Emerging Markets.
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42%
6%
3%
6%
44%
18%
10%
22%
9%
23%
12%
24%
4%
38%
40%
34%
1%
15%
35%
14%
31%
3%
0%
0%
55%
17%
7%
21%
14%
14%
3%
21%
0%
45%
45%
48%
0%
21%
45%
10%
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
32
Information on Emerging Markets
Brazilian companies All companies
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey, Brazilian companies = 29. All companies = 431.
Brazilian companies lack readily available Emerging Markets information more than global peers 66% say such information is lacking, compared to 53% global average
Emerging Markets intelligence
www.globalintelligence.com
18%
17%
4%
37%
33%
18%
21%
31%
30%
17%
17%
38%
7%
2%
10%
10%
10%
4%
24%
31%
14%
17%
35%
34%
35%
21%
34%
14%
3%
14%
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
33
Decision making on Emerging Markets
Brazilian companies All companies
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey, Brazilian companies = 29. All companies = 431.
48% say that lack of information delays decisions This is likely to be one underlying factor behind strategic mistakes made in Emerging Markets
Emerging Markets intelligence
www.globalintelligence.com
Appendix: Survey Respondents
29 large and mid-sized Brazilian companies took part in the survey Almost half of them have at least 1,000 employees
35 Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey, N=29 (Brazilian companies).
43%
28%
7%
11%
11%
< $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
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36
Companies taking part in the survey represented a wide spread of industry sectors
24%
18%
18%
10%
7%
7%
7%
3%
3%
3%
Professional & Business Services
Financial Services
Energy, Resources & Environment
Telecommunication, Technology & Media
Manufacturing & Industrial
Consumer & Retail
Others
Automotive
Construction & Property Development
Logistics & Transportation
% of respondents by industry
Source: Global Intelligence Alliance, Business Perspectives on Emerging Markets 2012-2017 Survey, N=29 (Brazilian companies). www.globalintelligence.com
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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.
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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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