84% German Companies See Emerging Markets as Major Future Markets

July 15, 2012. The German companies in M-Brain (formerly GIA)’s Business Perspectives on Emerging Markets 2012-2017 Report (Germany Results) intend to focus significantly more on Brazil, China and Russia than their global peers do in 2012-2017. While almost half generate only a tiny portion of their revenues (up to 10%) in Emerging Markets today, 84% of them expect to make at least half of their revenues there by 2017. This shows the increasing importance of Emerging Markets to German companies.

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But almost all (96%) of those surveyed admit they could have done something differently in their Emerging Markets strategies. The biggest regrets relate to missing out in terms of both speed and adapting to local conditions.

In April-May 2012, M-Brain (formerly GIA) conducted an online survey amongst business managers at 431 large and mid-sized companies around the world, 31 of which were companies headquartered in Germany.

Here are some other top line findings:

  • BRIC countries are the top four most important Emerging Markets for German companies through 2017. However, they are not expected to be equally important, with 80% preferring to focus on Brazil and China, 60% on Russia, whereas India is least favored with 50%.
  • At the same time, German companies are also more keen on geographically closer markets such as Turkey (27%), Poland (10%) and the Middle East (17%).
  • Most German companies (84%) invest in Emerging Markets to set up a presence in future major markets. It has become less about capturing lower production costs (16%).
  • The proportion of global revenues from Emerging Markets will continue to grow strongly through 2017; 84% of the German companies in this survey expect to generate at least half of their revenues there by 2017.
  • 96% admit they could have done something differently in their Emerging Markets strategies; their two biggest regrets being not making greater efforts to adapt to local markets/prices better or not entering earlier (20% each).
  • German companies appreciate the value of market intelligence, with 87% saying that accurate market sizing and growth estimates are critical to their Emerging Markets Strategy. However, only 58% do actually use market intelligence for this purpose.
  • Almost half of the German companies surveyed (49%) find that decision making on Emerging Markets is delayed because of lack of information.

About the Business Perspectives for Emerging Markets 2012-2017 Report

In April-May 2012, M-Brain (formerly GIA) conducted an online survey amongst business managers at 431 large and mid-sized companies and organizations worldwide, with 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?

Industries covered include: Manufacturing & Industrial; Technology, Media & Telecommunications; Professional & Business Services; Financial Services; Consumer & Retail; Pharmaceuticals & Healthcare; Energy, Resources & Environment; Automotive; Chemicals; Logistics & Transportation.

Respondents: Nearly half (42%) of the companies in the survey earned more than $1.3 billion (1 billion Euro) in annual revenue and more than 50% (58%) have more than 1,000 employees. The respondents’ job functions included strategic planning/business development (26%), market/competitive intelligence (23%), senior management (19%), sales and marketing (13%), research and development/product management (9%), among others.

 

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