Manufacturers must innovate in emerging markets

Over half (56%) of global manufacturers expect to substantially grow revenues in emerging markets over the next three years, with nearly three-quarters anticipating significant increases in

.

Twenty-three per cent are optimistic about prospects in developed markets, according to a new report by business advisory firm Deloitte.

However, 29% of the companies surveyed currently enjoy higher margins in emerging markets than in developed ones. Of those that do, 54% are providing different product features to the ones offered in their home markets.

Deloitte says it's findings send out a clear message: that manufacturers must tailor their products, pricing and strategies specifically to Asian, Eastern European and Latin American countries, if they are to realise the enormous potential of these emerging economies. Half of the manufacturers questioned still provide uniform products across all markets, despite the fact that 40 per cent generate lower gross margins in emerging markets.

Jane Lodge, UK manufacturing industry leader at Deloitte, said, "Long-term success requires more than simply tinkering with existing products, lowering prices, and developing new sales channels. Manufacturers must understand the unique needs of each local market and develop new offerings accordingly."