Mass customisation in emerging markets Corporate executive survey highlights

Transcription

1 Mass customisation in emerging markets Corporate executive survey highlights

2 Respondents 525 business leaders from companies headquartered in: The march of technology and rising wealth are changing the nature, scope and scale of product mass customisation, especially in the developed world. UK FRANCE NETHERLANDS CHINA GERMANY US INDIA JAPAN This survey conducted by the EIU was aimed at exploring the potential for mass customisation and personalisation of goods and services in emerging markets. VIETNAM PHILIPPINES THAILAND MALAYSIA INDONESIA Half of the respondents were from companies that had annual revenues of at least US$500m.

3 Respondents 525 business leaders from companies headquartered in: UK FRANCE NETHERLANDS CHINA GERMANY US INDIA JAPAN VIETNAM PHILIPPINES BRAZIL Half of the respondents were from companies that had annual revenues of at least US$500m. THAILAND MALAYSIA INDONESIA

4 Respondents 50% of respondents were c-level executives 25% of respondents were senior executives 25% of respondents were manager level

5 Which of the following form part of your company s product strategy over the next three years? Select all that apply. Mass customisation and personalisation both figure strongly in the product strategies of companies that were surveyed. 36% Mass production, 51% Mass customisation, 47% Personalisation, the creation of standardised products and/or services. tailoring products for specific customer groups. tailoring products for individual customers. 24% Co-creation, 1% None of the above. 0% Do not know. the direct involvement of customers in the design of new products.

6 Which of the following form part of your company s product strategy over the next three years? Select all that apply. 36% Mass production, 51% Mass customisation, 47% Personalisation, the creation of standardised products and/or services. tailoring products for specific customer groups. tailoring products for individual customers. 24% Co-creation, 1% None of the above. 0% Do not know. the direct involvement of customers in the design of new products.

7 Energy 30% 68% Materials 43% Consumer staples 43% 55% Mass customisation is central to Industrials 51% 54% the plans of energy, telecoms and Consumer discretionary 37% 50% financial services firms. 48% Personalisation is significant for 37% healthcare, industrial goods and Financial 43% IT companies. Information technology 52% 59% Healthcare 55% 48% Telecommunications Utilities 60% 28% 60% 43% Planning to mass customise over the next three years Planning to personalise over the next three years 70

8 Energy 30% 68% 43% Materials 55% 51% Industrials 37% Consumer discretionary 50% 43% Consumer staples 48% 37% Healthcare 59% 43% Financial 60% 52% Information technology 55% 48% Telecommunications Utilities 54% 28% 60% 43% Planning to mass customise over the next three years Planning to personalise over the next three years 70

9 Regions where product demand will be greatest in the next three years: Respondents could pick up to three answers. With its diverse and relatively fast 30% growing economies, Asia is expected 25% to lead demand for mass 23% globally 22% 22% 22% 21% 21% 20% 19% customised and personalised products. 18% 17% 33% 30% East Asia South-East Asia Mass customised products Western Europe South Asia Personalised products North America Central & South America Middle East & North Africa 15% 14% Eastern Europe

10 Regions where product demand will be greatest in the next three years: Respondents could pick up to three answers. 33% 30% 30% 25% 21% East Asia South-East Asia Mass customised products 23% Western Europe 22% 20% South Asia Personalised products 22% 22% 19% North America 18% Central & South America 21% 17% Middle East & North Africa 15% 14% Eastern Europe

11 Level of premium that can be added to flagship products in the next three years: 32% with the right resources For companies 27%capabilities, personalisation appears and 24% to be22% a more lucrative product strategy than mass customisation. 16% 15% 11% Companies expect to attach higher 9% 9% 8% 7% price premiums to personalised products compared with mass customised ones. 2% 2% 10% 1-10% 11-20% Mass customised products 21-30% 31-40% Personalised products 41-50% More than No premium 50% can be added 2% 2% Do not know

12 Level of premium that can be added to flagship products in the next three years: 32% 27% 22% 24% 16% 15% 11% 10% 8% 7% 9% 9% 2% 2% 1-10% 11-20% Mass customised products 21-30% 31-40% Personalised products 41-50% More than No premium 50% can be added 2% 2% Do not know

13 The main external obstacles to overcome to pursue a strategy of mass customisation and/or product personalisation in emerging markets? Respondents chose up to three answers. Corporate executives face considerable Lack of quality transport infrastructure 21% challenges to executing their mass Inadequate payment systems 16% customisation and personalisation Lack of working capital strategies in emerging markets. Lack of reliable distribution options Chief among them: lack of insights Inadequate Internet access/communications networks 17% about customer demand, insufficient Lack of insights about customer demand working capital and a shortage of Shortage of local production skills reliable distribution options. 23% 32% 33% 23% Shortage of local marketing skills Inadequate or insufficient financing options 33% 11%

14 The main external obstacles to overcome to pursue a strategy of mass customisation and/or product personalisation in emerging markets? Respondents chose up to three answers. 21% Lack of quality transport infrastructure 16% Inadequate payment systems 33% Lack of working capital 32% Lack of reliable distribution options 17% Inadequate Internet access/communications networks 33% Lack of insights about customer demand Shortage of local production skills 23% Shortage of local marketing skills 23% Inadequate or insufficient financing options 11%

15 Demand for product personalisation will soon be greater in emerging markets than it is in developed markets. There were few doubts that 78% demand for personalised products will be greater in emerging markets In three years, no producer will be able to compete without the thanabilities. in developed markets. build-to-order 69% 16% 24% 7% 8% Emerging-market companies are better positioned than developed-market companies to meet demand for personalisation in their markets. 63% Agree Neither agree nor disagree 27% Disagree 11% Values may not add up to 100% due to rounding

16 Demand for product personalisation will soon be greater in emerging markets than it is in developed markets. 78% 16% 7% In three years, no producer will be able to compete without the build-to-order abilities. 69% 24% 8% Emerging-market companies are better positioned than developed-market companies to meet demand for personalisation in their markets. 63% Agree Neither agree nor disagree 27% Disagree 11% Values may not add up to 100% due to rounding

17 Mass customisation and personalisation require new approaches to financing supply-chain operations. 69% However, the speed and agility required are expected to strain Agree supply-chain financing options. New thinking will be required. 24% Neither agree nor disagree 7% Disagree

18 Mass customisation and personalisation require new approaches to financing supply-chain operations. 69% Agree 24% Neither agree nor disagree 7% Disagree

19 Expectations about how mass customisation and personalisation will affect financing needs over the next three years: Respondents chose all answers that applied. The biggest impact of customisation Increase the need for real-time payments to suppliers 28% 30% and personalisation on supply-chain Lead to increased frequency of payments to suppliers 33% 33% financing will be the need for more long-term capital investment29%to build Lead to longer payment terms to suppliers 32% capabilities, particularly in Asia s 37% Require more long-term capital investments emerging markets, where demand is Require higher borrowings for working capital 24% 26% expected to be greatest. 28% Require more flexible financing options None of the above 3% 31% 3% 5 Mass customised products 41% Personalised products

20 Expectations about how mass customisation and personalisation will affect financing needs over the next three years: Respondents chose all answers that applied. 28% Increase the need for real-time payments to suppliers 30% 33% Lead to increased frequency of payments to suppliers 29% Lead to longer payment terms to suppliers 32% 37% Require more long-term capital investments 24% Require higher borrowings for working capital 3% 31% 3% 5 Mass customised products 41% 26% 28% Require more flexible financing options None of the above 33% Personalised products

21 To uncover more insights about mass customisation in emerging markets, go to report/made-to-order/