Global measurement company The Nielsen Company has released its “ASIA 2020 – Progressing, Prepared or Pessimistic” report on its first annual Asia Pacific Business Sentiment Survey. The survey sought the opinions, thoughts and concerns from business leaders within the Asia Pacific business community to gain greater visibility and understanding of the changes they anticipate they will face over the next five years.
Here are some key findings from the report:
Change is the new norm in 2020
According to the report, Asia Pacific business leaders predict significant changes are required to today’s business model to ensure survival in the future. The report identified:
- more than three quarters (76 percent) of business leaders expect their business model in five years will differ significantly compared to today;
- only 48 percent believe their organization is prepared for the future;
- 43 percent are confident they have the systems and processes in place to be able to spot early indicators of change; and
- 59 percent acknowledge it will be difficult or extremely difficult to navigate their organization forward through the next five years.
Changing consumer preferences, legislative or political changes, regulation and taxation, economic development, and new competitors are among the list of change events most commonly anticipated by business leaders.
e-Commerce is a retail game changer
- 50 percent of business leaders believe e-commerce will represent 30 percent or more of their organization’s growth in the next five years;
- and a further 32 percent think e-commerce will capture greater than 20 percent of total sales for their organization over the next five years.
Other significant factors shaping the future of retail environment cited are: online & e-commerce, route to market, consolidation of retail power, growth of small format & convenience, local players
Image source: The Nielsen Company
Technology will fundamentally re-shape organisations over the next five years
- 8 in 10 expect new technology to impact their organisations such as The Internet of Things, 3D Printing, Drones and Robotics
Asia Pacific leaders are focusing on a few key areas to drive growth: Innovation, Digital, Big Data and Predictive Analytics, and Supply Chain Improvement.
The report also indicated that majority of business leaders (94%) believe innovation will be increasingly important in the next 5 years. “A focus on all things digital – be it a digital presence in market or leveraging digital platforms for internal operations – is also deemed critical by many, according to Nielsen. “Similarly, big data and predictive analytics will play a key role in driving companies’ understanding of what their customers are seeking.”
You can check out the full report here.