Research shows that pharmaceuticals and healthcare companies target Mexico, Turkey, Argentina and South Africa as their next emerging markets after BRIC til 2017.
Helsinki, Finland, September, 2012 –(PR.com)– Research by Global Intelligence Alliance (GIA) shows that pharmaceuticals and healthcare companies are likely to target Mexico, Turkey, Argentina and South Africa as their next target emerging markets after BRIC (Brazil, India, China and Russia) over the next five years to 2017. In Asia, Indonesia, South Korea and Singapore are considered top emerging markets to target, after China.
Brazil is the top emerging market for 2012-2017 for pharmaceuticals and healthcare companies, particularly for European companies. Larger companies are more inclined to define emerging markets as regions outside the US, Western Europe and Japan, versus smaller ones – and are more likely to target India over China and Russia.
In April-May 2012, GIA conducted an online survey amongst business managers at 38 global pharmaceuticals and healthcare companies. The results have been published in the Business Perspectives on Emerging Markets 2012-2017 Report (Pharmaceuticals & Healthcare Results) report.
The report shows that almost half of the respondents have entered emerging markets in search of greater global market share, while close to 40 percent already have customers in emerging markets.
The top success factors for pharmaceuticals and healthcare companies in emerging markets til 2017 will be local distribution and access to customers, pricing and localized competitive positioning.
“Rising incomes and more favorable healthcare regulatory policies have helped spur growth in most emerging markets. One of the largest challenges will be capturing growth in rural areas, which until now have been too fragmented to effectively enter. Global pharmaceutical and healthcare companies will also find themselves coming up against local competitors that may have the upper hand when it comes to leveraging local relationships and established procurement systems to undercut newcomers in price. As pharmaceuticals and healthcare businesses see a greater percentage of their revenues coming from emerging markets to 2017, they must be agile enough to successfully address these issues to secure effective distribution networks, navigate bureaucracies and price effectively,” said Nicolas Pechet, Senior Vice President, Asia Pacific at Global Intelligence Alliance.
The Business Perspectives on Emerging Markets 2012-2017 Report (Pharmaceuticals & Healthcare Results) report also shows that availability, accuracy and completeness of intelligence on emerging markets is an issue.
Nearly 80 percent of the pharmaceuticals and healthcare surveyed said that information on emerging markets is not readily available in their organizations, while nearly 90 percent doubt the accuracy and completeness of the information they do have. Only 37 percent said that decision making on emerging markets in their organizations is efficient as a result, and 87 percent admitted that decisions on emerging markets are delayed due to lack of information.
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About the Business Perspectives for Emerging Markets 2012-2017 Report www.globalintelligence.com/insights-analysis/emerging-markets
In April-May 2012, Global Intelligence Alliance (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; Telecommunication, Technology & Media; 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.
Global Intelligence Alliance Group