Long Term Growth – An Unrivalled Opportunity for Exporting Services in Emerging Markets

Tuesday, January 08, 2013

More details on the predicted changes can be found in the OECD's economic policy paper: 'Looking to 2060: Long-Term Global Growth Prospects’. In this report, the OECD pointed to the pattern of a fusion of a large, productive and educated population being necessary determinants for a top economy that will propel nations to overtake the current largest economic powers.

 

Asia is expected to have more middle-class consumers than the rest of the world by 2020 which will drive the necessity to design and build new cities. Hence the opportunities for supporting services including from the professional services sector is huge. Global opportunities and demand will be mammoth for world class planners, architects and engineers. Supporting these industries with be opportunities for financial services (banking and insurance) to finance these projects, mining and energy to power the development and transportation and logistic service sectors to move the heightened supply of purchased goods.

 

As emerging markets experience a growing middle class, demand will increase for the highest quality of exports from around the world and professional services such as legal and accounting. The stated opportunities for Asia are immense given the projected rise in wealth, an occurrence that will boost global consumption and growth as levels of consumption increase on a global scale.

 

To best engage with predicted available opportunities a study by Deloitte found that there were advantages found when local operations were incorporated as a key part of the business model. This will provide advantages such as greater knowledge of customer needs and buying habits, greater brand awareness in the market, and more experience in navigating government approvals and procedures. When questioned about growth strategies, the strategies that executives often rated as being extremely or very successful:

       Used local sales/service support centers (62%)

       Employed company-owned sales or distribution (60%) and

       Conducting R&D locally (45%)

 

More information can be gained from the Deloitte report: ‘Growth strategies: What can work in emerging markets?’