Strong and stable growth in emerging economies is increasing opportunities not only for existing players already operating in those markets, but for new ones as well, advisory firm Deloitte found in a report published last week. When it comes to the best opportunities, Poland ranks high – in second place, behind Russia, in the Eastern European region in terms of revenue opportunities – according to the report.

In the Eastern European region, 45 percent of executives surveyed believe Poland would offer the greatest opportunities for revenue over the next three years. Russia was ranked in first place with 66 percent, while the Ukraine and the Czech Republic were the region’s third- and fourth- ranked countries, with 28 and 25 percent, respectively. Executives were able to choose more than one country in each region.

Source: Deloitte

Companies not yet active in emerging markets identify Eastern Europe as a good choice to locate an investment, and 27 percent of European companies without emerging-market revenues are expected to begin generating revenues from Eastern Europe and Russia over the next three years, the report said.

Adapt to the market

But success in emerging markets is not just a matter of companies setting up shop and selling existing goods from their home markets. Foreign companies should adapt to the market, determine customer needs, design products for the local market and make them affordable, said Deloitte.

The report found that a key ingredient to success was to establish company-owned production, service, distribution, R&D, and other operations in emerging markets “to become closer to customers and part of the local business community.” However, the most important method identified for expanding in emerging markets was organic growth, according to 60 percent of the executives surveyed.

In Eastern Europe the main obstacles preventing investment include protectionist policies or government bureaucracy, the need to provide products and services that meet customer needs at affordable prices, and difficulties related to creating brand awareness in the market.