1. LOGISTICS In Emerging Markets
Amerik Haer
Managing Director
Kuehne+Nagel Saudi Arabia
KN KSA Airfreigth Organization

2. Emerging Markets Facts
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%
KN KSA Airfreigth Organization

3. 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
KN KSA Airfreigth Organization

4. 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
KN KSA Airfreigth Organization

5. 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
KN KSA Airfreigth Organization

6. 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.

7. 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

8. Thank You
KN KSA Airfreigth Organization