Simon-Kucher Study Shows ASEAN Companies Leave Profit Potential Untapped The top five ASEAN economies are losing USD 15 billion in profit, according to the Simon-Kucher ASEAN Pricing Stress Test 2013 which analyses firms in Singapore, Malaysia, Indonesia, Thailand and the Philippines. But companies can stop losing money – if they would just allow for small price increases. Business Wire SINGAPORE -- November 4, 2013 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* of the international consultancy Simon-Kucher & Partners 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: http://www.simon-kucher.com/en/news/simon-kucher-study-shows-asean-companies-leave-profit-potential-untapped Dr. Jochen Krauss is the Managing Director of Simon-Kucher’s Singapore office. Jan Weiser is a Director at Simon-Kucher. Contact: Simon-Kucher & Partners Nora Neuwinger +65-63419027 Nora.Neuwinger@simon-kucher.com www.simon-kucher.com
Simon-Kucher Study Shows ASEAN Companies Leave Profit Potential Untapped
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