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By: Jana Rude

Assessing the industrial makeup of the world’s biggest economies and how they are shaping the B2B marketplace helps businesses pinpoint new opportunities. Measuring the market potential of different industries is critical for professionals working in sales, marketing, operations and logistics to find growth opportunities and determine their strategy.

Additionally, analysing the corporate landscape helps assess the composition of the client base and how to market a particular product offering, while analysing pricing policies and profit margins helps determine a client‘s price sensitivity and inform sales strategy.

Top 5 uses for Industrial Data

1. Evaluate the size and potential of any manufacturing or service industry on a global/regional/country level 2. Spot market opportunities by evaluating detailed industry statistics such as production forecasts, firmographics, cost structure and profitability 3. Analyse the structure and potential of foreign trade on a cross-country and cross-industry basis to pinpoint new opportunities 4. Create informed sales strategies by examining the corporate and economic landscape in terms of concentration/ fragmentation of the industry and the leading companies by industry 5. Identify attractive or risky industries, using Euromonitor’s unique Industry Attractiveness Index

Analysing industry data helps companies adapt their products in a more targeted way, depending on the firmographics, cost structure and profitability of the target companies as well as the overall corporate and economic landscape. Three critical business questions that industrial data answers are:

1. What is the B2C (consumer), B2B (business) and B2G (government) market potential for our product?

A telecommunications company is looking for a new market. Demand for telecommunications services in the top five telecommunications markets globally is evaluated among B2C (households), B2B and B2G (public administration, healthcare and education industries) clients. As of 2015, Brazil had the largest market share among B2B clients, while the highest demand share among B2C clients was in Japan. Japan and Brazil also shared the largest market potential among B2G clients, whereas China has the largest untapped potential in the B2G client market. B2G represented 6% of market value in 2015, in comparison with close to 10% in other countries. Nominal B2G spending on telecommunications in China has increased by 98% between 2010-2015.

top five telecommunication markets usa china brazil japan uk

Source: Euromonitor International

2. Which industries are the most vulnerable to economic fluctuation?

In the event of a disorderly Brexit scenario, it would mostly affect the UK’s business services industries, especially architectural services and advertising.

A Brexit-caused downturn in the UK advertising industry would mostly affect the market research industry, as seen from the Analytic Industrial Dashboard, which enables thorough analysis of industry interconnectedness. Advertising spends 9% of its total costs on market research in the UK, which accounts for 21% of the market research industry’s total revenue, indicating that a downturn in advertising would significantly affect market research revenues.

Source: Euromonitor International

3. How is my business doing against global/regional industry performance?

Industrial data enables companies to benchmark their performance against an industry’s average, across different countries and with competitors. For example, CH Robinson Inc. is strongly outperforming the US’s warehousing and logistics industry in terms of revenue growth, yet the company‘s profit margin of 22% is below the industry‘s benchmark in 2015. One of the reasons for the lower profit margin can be found in higher labour costs, which accounted for 46% of the company’s revenues in 2015, compared with the 40% industry average.

Industrial data can be found in a variety of sources, but many are not comprehensive enough. In addition to this, compiling all of this research can be time-consuming and data isn‘t always easily cross-comparable. Euromonitor‘s Passport Industrial analysis tool provides insights into business to business and business to consumer markets across all industries in the world‘s biggest economies. Passport Industrial offers a wide range of historical and forecasted data, including industry sizes, profitability measures, buyers/suppliers structure and statistics, coupled with attractiveness indexes and interactive tools. With forecasts up to 2025, Passport Industrial enables clients to  keep up with industry shifts in order to be best-placed for long-term success.

For more information about how Industrial insights can help your business strategy, download the full briefing here.

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