Going for gold in emerging markets

Winning the $30 trillion decathlon: Going for gold in emerging markets

McKinsey Quarterly, August 2012

By 2025, annual consumption in emerging economies will rise to $30 trillion, nearly half the global total. Yet today, the developed world’s largest companies get only 17 percent of their revenues from these new markets. Despite advantages in scale, technology, and access to capital, multinationals risk missing out on the century’s defining growth opportunity. McKinsey has identified 10 key capabilities that companies must develop to seize this opportunity.

Amongst them, ……………….. the urgent need to develop, recruit and retain local talent by portraying themselves as the ‘employer of choice’. Firms like L’Oreal, Motorola and Nestle have been successful at branding themselves as desirable employers.

They must also learn to build and manage effective relationships with key local stakeholders in government, civil society, and the local media to harness their support for market access, merger and acquisition activity and reputation enhancement.  

Not to mention the fact that understanding the cultural characteristics of the emerging market consumer will have significant implications for brand and marketing strategies.
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McKinsey experts highlight a number of business disciplines where global companies need to raise their game in order to compete effectively, ranging from brand building, innovation, sales and distribution to the development of local leadership.

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