Emerging economies spend more on services
In emerging economies, growth in spending on services has been stronger than that on goods, according to a report issued by the Japan External Trade Organisation (JETRO).
A recent survey conducted by the organisation found that Japanese business in information services, construction, and other tertiary industries are looking to sell into these emerging markets, particularly in Asia.
However, JETRO found there needed to be a greater element of local engagement: “For these firms to further cultivate this growing market, they need to hire and fully train local talent.”
It also pointed out that service exporters had to develop a business model to allows them to offer high value-added services at a lower cost to effectively target the region’s emerging middle income group.
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