Transformation of the Market Research Industry

The opening address at the recent ESOMAR Annual Congress by President John Kelly neatly summed up the transformation of the market research industry. As we are all aware, globalisation and developments in ICT are transforming international business on an unprecedented scale. The swing to a different economy is producing profound and unexpected changes in the structure of society, business and ways of working.

According to Mr Kelly, the MR industry now accounts for some Euro 17 billion, and employs more than 650,000 people worldwide. Ten countries account for over 80% of the global turnover, and nearly 60% of research turnover is accounted for by the largest 25 companies. No one can dispute that "market research is now a serious business."

Kelly discussed a number of key developments in the research sector such as a change in its structure, due both to mergers and acquisitions and an increasing focus on application of high quality standards in international research. "There is a European Standard, which is being considered by the US, Japan and others as the basis for a worldwide standard. These efforts need to be recognised and endorsed by client companies, to be fully effective and profitable to both supply and demand side."

Kelly also dealt with data collection and the immediate influence of the Internet. "Over times the advent of forms of data collection and Internet have meant a continuous process of adaptation of our codes of conduct. ESOMAR, as a pioneer in developing and maintaining high quality standards for the profession will continue to focus on effective self regulation and best practice and to promote the best research for better decisions. ESOMAR's Professional Standards Committee takes great care to ensure the proper balance between effective self-regulation and preserving the industry's ability to compete in the information industry."

He added "It is vital for our industry to address consumer concern about privacy is growing and this relates not only to data protection laws but also the right not to be disturbed. The industry is responsible for its interface with the public and must invest in its relations with respondents, our most important resource."

ESOMAR's President commented on efforts to re-define or re-name MR "Is it the appropriate name for the activities we undertake? Simply changing our name will not overnight turn the industry nor will it necessarily change others' perceptions of us or our identity whatever that may be at the present. A key issue to address is to improve structurally understanding of decision maker's needs and the client side, as insight up-to-date on an international level is lacking."

Mr Kelly believes that, in terms of the way forward for the industry, a major step in global dialogue was achieved when the first meeting of RELEAS was held last January. RELEAS - the Global Research Leaders Summit, jointly initiated by ARF and ESOMAR - is the forum where the industry can talk at the highest level, and will re-convene in Geneva in January 2002 and in January 2003. "RELEAS represents a significant move forward in bringing the industry's leaders from all parts of the globe together to shape the future of our industry. What are the likely scenarios? Will the next period be more stable, are we moving towards consolidation or should we expect more change? What are the drivers and outcome of possible continued change? RELEAS is part of ESOMAR's efforts to stimulate debate, helping to create both insight and foresight about future developments in the industry."

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.