Recent publicity over problems with product safety, product quality, and environmental standards in emerging markets have made these into critical issues for boards of directors, senior management, and investors of global manufacturers.  The result has been significant financial and reputational risk for manufacturers sourcing from suppliers in emerging markets.  Sourcing successfully from emerging markets is not a question of avoiding these risks, but instead of managing them effectively through enhanced vendor selection, testing, monitoring, and contract provisions.  Yet, implementing these more rigorous standards likely to result in higher operating costs.  However, manufacturers have the opportunity to turn this challenge into a competitive advantage - building brand equity and commanding higher prices by providing guarantees that their products meet the strictest standards.

Innovation in emerging markets: 2008 Annual Study accesses the impacts that heightened concerns over product safety, quality, and environmental impacts are having on the strategies and operations of global manufacturers in emerging markets.  It also examines what is required for manufacturers to succeed and realise the enormous market potential of the developing economies including China, India, Southeast Asia, Eastern Europe, and Latin America.  As global manufacturers produce more products in emerging markets, they face increasing financial and reputational risks regarding product safety, quality and environmental standards.

Learn more from the full report: Innovation in emerging markets: 2008 Annual Study (PDF 1981 KB)

Executive summary
Innovation in emerging markets: 2008 Annual Study (PDF 544 KB)

In the press
78 percent of manufacturers view sourcing products in emerging markets as risky, according to a new Deloitte report.

Previous reports
Innovation in emerging markets 2007 and 2006: Report study and other media.