Linked inEmerging market companies remain strategically focused on customers in the developing world. Many companies are planning to expand their supply chains in other emerging markets to become more efficient, control costs and to be closer to their customers.

Value addMany emerging market companies are planning to focus their supply chain expansion on product development and R&D, higher value areas of their businesses.

An Economist Intelligence Unit survey of 400 executives showed that emerging market companies are planning not only to strengthen their supply chains in other emerging markets over the next several years, but also to source more high-value services from them. The survey, which was conducted in March 2015, covered eight emerging markets.

Next three years: Are you planning on expanding your supply chains in emerging markets?

86 9450

96 9656

82 96

14 650

4 444

18 4

Brazil China Dubai India Indonesia S.Africa Thailand Vietnam

YES vs NO (%)

10

20

30

40

50

60

Increaseoperationalefficiency

Reducecosts

Develop productstailored for

emerging-marketconsumers

Bring supplychain(s) closerto customers

Develop abase for future

expansion

Capitaliseon naturalresources

Remaincompetitivein industry

Next three years: Why will you be expanding your emerging market supply chains? (%)

Next three years: Where do you expect to see growth in your emerging market supply chains? (%)

Brazil China Dubai India Indonesia S.Africa Thailand Vietnam

34

16

1828

36High-value-added activities

Lower-value-added activities

Productdevelopment

4937

Customerservice

Sourcing/procurement

R&D

Operationalsupport

Manufacturing

Assembly &packaging

Productdistribution& logistics

34

Chains will change

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