2013-11-04 10:07:01 -
The economies in ASEAN are growing steadily. Nevertheless, increasing price pressure from competitors, rising raw material costs and inflation rates worry company managers. As the ASEAN Pricing Stress Test 2013* : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. of the international consultancy Simon-Kucher & Partners : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. reveals, the top five economies in the region could earn added profits of approximately USD 15 billion if companies would implement a marginal price increase of two per cent. The consultancy analysed approximately 1,400 companies listed on the stock exchanges of Singapore, Malaysia, Indonesia, Thailand and the Philippines and calculated the impact of small price increases on a company’s profit.
“Companies in ASEAN are losing out by focusing solely on cost-cutting,” explains Dr.
Jochen Krauss, Managing Director of Simon-Kucher’s office in Singapore. “They have to look at the real profit driver – their prices.” Krauss recommends professional price management to companies.
Consumer/retail sector shows highest profit potential
The study reveals that the highest average profit growth potential lies in companies in the consumer/retail sector (+48 per cent), followed by manufacturing (+41 per cent), construction (+32 per cent) and telecommunications (+27 per cent) enterprises. “Companies with low returns have the biggest potential,” reports Jan Weiser, Director at Simon-Kucher. “That’s why just small price increases can have the largest profit impact here.” This statement also reflects the ranking of the top 10 ASEAN companies with the greatest potential to increase profits by raising their prices by two per cent.
Synnex Thailand PCL has the largest potential impact with a possible profit increase of 265 per cent, followed by three other Thai players.
Companies from Singapore, Indonesia and Malaysia fill ranks five to ten; companies from the Philippines perform somewhat better in comparison, which is why they are not among the top 10. On average, more than eight out of ten of the analysed companies can count on a two or three-figure percentage increase with minimal price increases.
*Analysis available upon request.
Complete release: www.simon-kucher.com/en/news/simon-kucher-study-shows-asean-comp ..
: cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..
Dr. Jochen Krauss is the Managing Director of Simon-Kucher’s Singapore office. Jan Weiser is a Director at Simon-Kucher.
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Simon-Kucher & Partners Nora
Neuwinger : cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww ..
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