Global Market Expansion Services (MES) remains a highly promising sector in the outsourcing industry with an annual growth rate of 7.1 per cent globally, and 8 per cent annual growth expected for Asia alone, according to the second MES report jointly released by Roland Berger and DKSH.
Service innovation will be the new growth imperative for companies looking to expand in the emerging markets of Asia.
Continuous service innovation brings new business and growth opportunities, and is critical for the superior competitive position and long-term success of MES providers, their clients and customers. Collaboration is the key success factor for service innovation, which involves a close and trusting dialog between the provider and their clients and customers, so as to develop tailor-made innovative services that really fit their needs.
MES providers are benefiting from the growth of the global MES industry, which according to the report, grows 7.1 per cent per year and is expected to reach US$3.1 trillion (Bt95 trillion) in 2015. In particular, international MES providers who provide full service, cross-regional, cross-industry, customised services, coupled with a comprehensive network and local market know-how are those best positioned to take advantage of that growth.
To stay ahead of competition, it is however imperative for MES providers to offer not only solid core services such as sales, distribution and logistics, but also additional, innovative services, tailor-made according to the needs of their clients and customers. Successful service innovation allows MES companies to stay competitive and create a market advantage for themselves in the long run.
"Companies engages MES providers to help them not just understand local practices, market specifics, local regulations, legal issues and cultural differences but also execute on the ground. With the AEC [Asean Economic Community] just round the corner and trade barriers coming down, we see more and more companies engaging MES providers to help them access the Asean markets. DKSH will continue innovating its service offerings and investing in its infrastructure and technology platform to meet this upcoming demand," said Somboon Prasitjutrakul, president of DKSH Thailand.
"In DKSH, we constantly find ways to improve the quality of services and seek out new service offering. Consumer behaviour is fickle and unpredictable so our specialists work closely with suppliers to chart out future market trends and analyse consumer feedback," he said.
Somboon said that as such, as part of DKSH's service innovation, the company set up a call centre for its Healthcare Business Unit so consumers are able to give their feedback directly, and the company would be able to reach out new products vice versa. Thus, this two-way communication is an important tool for the company to better serve its clients and consumers. In line with the growing use of social media in Thailand, the company has also set up an E-commerce site, www.shopdksh.com as another medium to reach to a wider consumer network, especially the younger generation.
He said that DKSH sees many market opportunities in Myanmar, especially for consumer goods, basic products and personal products. However, to tap into the potential of this market requires an understanding of the market forces and purchasing behaviour of Myanmar customers. DKSH conducts its business by partnering and helping international brands and local brands in Myanmar to grow their markets. With the growth of MES and the Myanmar market, DKSH plans to build a second warehouse in Yangon with construction beginning in early 2013 and expected to be completed at the end of year. This investment is made on the back of a successful implementation of the 1st warehouse in Myanmar two years ago.
Preman Mahaldayvan, head of country management, DKSH Myanmar, said: "In terms of growth rates, Myanmar is one of the top three markets according to the 'Attractive Business Opportunity in Asia for MES' study by Roland Berger, with 9.5 per cent annual growth, lagging behind Vietnam and Indonesia, which are ranked first and second and with annual growth rates of 14.3 per cent and 12.2 per cent, respectively." With Myanmar opening up to the world, companies are flocking into the country to tap this market potential. However, Myanmar is still a highly complex market with potential pitfalls and risks. Companies which do not have local expertise may find themselves very quickly in a disadvantaged position. Therefore, MES providers such as DKSH, which have been operating in Myanmar since 1984, can help companies to enter the Myanmar market with minimal risk and lower investments." Chandan Joshi , Partner of Roland Berger Strategy Consultants said that as more companies are looking to enter and/or expand in emerging markets, particular a region marked by diversity like Asia, it is advisable to choose an MES provider who not only has proven expertise and know-how, a comprehensive range of services, and an extensive network, but is also capable of creating value through trust, resources, and efficiency.
Latest stories in this category
- Market expansion firms doing brisk trade in Asia
- Global Market Expansion Services (MES) remains a..
- Developers welcome proposed streamlining
- Thai firms urged to make use of IPRS
We Recommend
- Blocking of Krabi video considered
- It is possible to block from viewing in Thailand a..
- Krabi tourism hit by viral video clip
- Is this a case of 'wolf, wolf' again?
Comments conditions
Users are solely responsible for their comments.We reserve the right to remove any comment and revoke posting rights for any reason withou prior notice.
Article source: http://www.thethailandlinks.com/2012/11/12/market-expansion-firms-doing-brisk-trade-in-asia/
0 comments:
Post a Comment