Transcript Global Presentation - Jordan Brand. Nike.com

LOGISTICS
In Emerging Markets
Amerik Haer
Managing Director
Kuehne+Nagel Saudi Arabia
Emerging Markets
Emerging markets are those markets which are in the process of rapid growth
and industrialization. Emerging markets yield enormous market potential.
Facts
World Population
 Mature Market – 16%
 Emerging Market - 84%
Market Capitalization
 Mature Market -95%
 Emerging Market -5%
National Income
( Purchasing Power Parity)
 Mature Market -62%
 Emerging Market -38%
2
Characteristics

Regional Economic Powerhouses
Large populations, Abundant resource base, and huge markets

Transitional Societies
Adaptable to economic and cultural reforms
•
Great Untapped Potential
World's fastest growing economies

“Key Swing Factor" in the growth of world trade and global financial
stability
Active participants in the world's major political, economic, and social affairs
3
Opportunities
 Emerging Markets are too big to ignore
 Attractive with higher profit margin
 Encourage foreign investments
 Rationalize the trade relations and
capital investment with the industrialized
countries
 Booming Economies with good
Fundamentals
 Great potential for FMCG, Pharma &
Basic Industrial products
 Investment is now switching directions, as appetite for risk and
confidence in emerging markets increase
4
Trends

Capital flow into the Emerging
Markets may hit record in 2010

Emerging Market currencies set to
inflate as a result of heavy foreign
direct investment

Developed markets are getting hit by
high levels of debt declining GDP
growth
5
Logistics Perspective
 Identify the technical and cultural obstacles that may hinder the
introduction of integrated supply chain management to an emerging
market.
 Manage effectively the risks associated with emerging market logistics
 Research on the market trends and logistic requirements of a given
emerging market
 Find solutions to overcome the physical infrastructure limitations that
slows down free flow of goods
 Prepare the market to adapt to sophisticated & IT supported logistic
solutions.
6
Role of a Global Logistic Provider
A Global Logistic Provider is expected to :

Reach the emerging markets on time

Offer tailor made solutions

Add flexibility to Supply Chain

Leverage logistic expertise and IT not available internally

Holistic supply chain network and cost optimization
7
Thank You