Can UK design withstand competition from emerging economies?

Why are emerging economies an issue for design?

Addressing: Supporting growth in the creative economy

Find out how emerging economies like India are using design

Design Council

What's the issue?

As emerging economies like the BRIC countries (Brazil, Russia, India and China) grow and their rates of production increase, the need for design to differentiate will rise as well.

But are emerging economies using design strategically enough, and if they are, does this pose a threat to UK designers? Or does it present opportunities for our design industry?

Facts and figures about the current state of design in emerging economies:

  • The economies of the four BRIC countries now account for 35% of the world’s economic growth. 
  • India has a national design policy which aims to produce 5,000-8,000 designers a year through investment in new design centres. Design is expected to be worth one per cent of India's GDP, an estimated £56million, by 2009.
  • China has plans for its creative sector to grow by 20 per cent year on year. The country opened its first specialised design school 23 years ago: now it boasts more than 400 and a vast new design facility has opened at Guangzhou’s Academy of Fine Arts to teach up to 3,000 industrial design students.
  • Just behind BRIC come the TVT countries - Thailand, Vietnam and Turkey - which have a combined population of 230million and a collective GDP of £305billion

‘What is impressive – and worrying – about the emerging economies is not where they stand today but how they are positioning themselves for the future’, says Sir George Cox, Design Council Chairman, in the Cox Review of Creativity in Business.

Crucially, says Cox, ‘The UK has a window of opportunity.' While other countries seek to replicate our existing strengths (such as awareness of consumer rights and needs, brand focus), the UK can continue making its creative processes stronger. UK businesses must consider how countries like China, India and Russia have benefited from design in order to understand how the UK's creative economy can withstand competition from these emerging economies and take advantage of the new opportunities offered by the global marketplace.

In more depth
Read David Kester's Letter from India in full'Polymaths with deep roots in culture and craft, new skills in design and broad, open minds are needed to tackle the social and economic challenges facing India...'
Read more from Design Council Chief Executive David Kester's visit to India

For UK designers worried that emerging economies will take all their work, the Cox Review cites Finland as an example of how design and investment in R&D can help a nation’s economy withstand competition and become a worldwide design and manufacturing leader. 

What is the Design Council doing?

We're helping UK businesses and designers to compete in an increasingly global economy.

  • Our business programmes are helping companies use design strategically
  • Working with the design industry, we're making sure designers have the skills they need for the future
  • Working with organisations like UKTI, we're making sure that design is part of wider government support for UK businesses

Timeline

March-July 2008

China Design Now at the Victoria & Albert Museum was the first exhibition in the UK to explore the recent explosion of new design in China, and the first to attempt to understand the impact of rapid economic development on architecture and design in China's major cities

28 January 2008

If you've ever asked Why India? Why now? designers Rodney Fitch and Graham Cartledge and representatives from the UKTI present case studies and tips on how to export design expertise at this London conference

September 2007

Investing in creative processes has helped India develop an economy based on more than just tourist toys

Design Council Chief Executive David Kester speaks at the Designyatra design conference in Goa.
Read more...

December 2005

The Cox Review of Creativity in Business is published and sets out the steps that the Government and the business, broadcasting and education sectors should take to ensure that UK businesses harness the world-class creative talents that the UK possesses

 

YOUR PERSPECTIVES ON THIS ISSUE

IDC managing director Stephen Knowles

Stephen Knowles

Managing Director, Industrial Design Consultancy (IDC)

 

Quote: Globalisation does pose a threat to the UK design industry but it also creates opportunities. With so many products made in China, 'Designed in China' is the obvious next step and stated goal of the Chinese. To prosper, UK companies need to go and claim their stake in the planned 20% annual growth in China's creative industries. Read what Stephen Knowles has to say on globalisation for growth in this New Design Magazine article.
David Kester, Design Council Chief Executive

David Kester

Design Council Chief Executive

 

Quote: India today is reaping the rewards of the investment it made in design education when, following a report made by Charles and Ray after they had visited India, it established the National Institute of Design (NID) in Ahmedebad, India’s nearest equivalent to the Royal College.
John Thackara speaking at the Competitiveness Summit '06 on Innovation and Emerging Economies

John Thackara

Director of Dott 07 and Doors of Perception

 

Quote: Is our competitiveness imperilled by developing countries catching up with us? My answer is no. Because in so called developing or emerging countries, but also here in the UK, the rules of competition are changing profoundly and irrevocably. We are all emerging economies now. We are in a transition from mindless development which has characterised most of our careers to design mindfulness. Now we need to ask, how best shall we use our creativity and innovation to stay ahead in the game?

Recent submissions

Stephen Knowles, Managing Director of Industrial Design Consultancy speaking in Issue 56 of New Design in January 2008 Many Indian companies are now actively looking to engage Western design consultancies in order to compete in world markets and differentiate themselves from competition. These companies are prepared to pay UK rates, but must be convinced that the consultancy can deliver a world class service, whilst understanding the cultural and commercial subtleties of the Indian market. 
So what does this mean for UK design firms considering dipping toes into Asian waters? Firstly, neither China nor India is for the faint hearted. In order to succeed, it is necessary to have a clear idea of what you are looking to achieve, with a long term strategic commitment to building relationships and winning work (think year not months). Good representation on the ground is essential, as well as world class design and service.

John McFall, Chairman Treasury Select Committee said in December 2006

On recent visits to China and India I witnessed the most innovative, skilled practices, not least in the automotive and pharmaceutical industries. We have a five- to ten-year window of opportunity to face this challenge from many countries - small and large - in Asia and Latin America. The successful countries of tomorrow are already planning ten years ahead