In a recent report from Global Intelligence Alliance’s (GIA) Business Perspectives on Emerging Markets 2012-2017, it was revealed that transportation and logistics professionals expect emerging markets to contribute to 36% of their global revenues by 2017—over double what it is today. The logistics professionals surveyed surmise that China, Brazil, India and Russia will remain the top four emerging markets over the next five years, followed by Indonesia, Vietnam, Singapore and Chile.
In the years ahead, emerging markets can expect to see fast growth—a quarter of respondents agreed that current emerging markets will become future large market. Particularly, cold chain logistics in China will greatly expand, due to the Chinese government’s plans to increase food safety.
However, because of the volatility in many emerging markets, poor infrastructure, bureaucracy and red tape are common threats, particularly in hard-to-access markets.
For example, Indonesia has over 1,700 islands, making it difficult for carriers, especially with crowded ports and shallow waters.
In order to achieve success in emerging markets, localized competitive positioning, access to customers and the quality of products/services will be crucial.
However, 75% of respondents doubted the accuracy and completeness regarding information on emerging markets. It’s clear that there are a log of uncertainties in emerging markets, but understanding the unique characteristics of each local market and partnering with the right companies will allow those in transportation and logistics companies to take advantage of the forecasted growth in emerging markets.
In total, 60% of the over 400 companies featured in the cross-industry study said that decision making is delayed because of lack of information, while 75% doubted the accuracy and completeness of the information they have on emerging markets.