Innovation in emerging markets
Strategies for achieving commercial success
In recent years, global manufacturers have been enticed by the enormous business potential presented by emerging markets. But what is required to succeed in these markets whose cultures, customer requirements, labour practices, and regulatory regimes are very different than those in developed markets? How are companies adjusting their product offerings, human resource strategies, and supply chains?
A new point-of-view from Deloitte’s Global Manufacturing Industry Practice, " Innovation in emerging markets: Strategies for achieving commercial success," identifies five challenges that companies must innovatively tackle to achieve success in emerging markets:
- Build new value propositions to deliver different product offerings that meet the unique needs of emerging market customers. In many cases, this will be at dramatically lower price points than in developed markets
- Globalize research and development (R&D) by locating R&D facilities in emerging markets to acquire deeper customer knowledge, and to build, market and distribute tailored products
- Tailor talent management strategies to the unique needs of employees in emerging markets, rethinking how to effectively recruit, develop, deploy and connect people
- Master the complexity of global value chains to provide autonomy at the local level, while leveraging the strengths of headquarters, including governance and management know-how
- Build risk management capabilities to effectively detect, correct and manage the unique profile of risks presented by emerging markets, such as the protection of intellectual property
The research report is based on a global survey of more than 400 executives, as well as in-depth interviews with senior executives at several global manufacturers.
Learn more from the full report Innovation in emerging markets: Strategies for achieving commercial success (PDF, 624 KB)