“Emerging markets will be not only a source of significant revenue growth for companies but also a source of talent, true innovation and ground-breaking approaches to business, which they will leverage on a global scale.”Emmanuelle Roman, Global Consumer Products Markets Leader, Ernst & Young
Summary: Today, emerging markets serve as the world's economic growth engine, and the far-reaching effects of their spectacular rise continue to play out. But their risks are often downplayed. Therefore, taking advantage of emerging-market opportunities requires careful planning.
As the greatest hope for growth in the global economy for the past two years, the emerging markets have become the darlings of the financial press and a favorite talking point of C-suite executives worldwide.
Once attractive only for their natural resources or as a source of cheap labor and low-cost manufacturing, emerging markets are now seen as promising markets in their own right. Rapid population growth, sustained economic development and a growing middle class are making many companies look at emerging markets in a whole new way.
As the emerging markets rise, so do their companies.
Many companies that had previously posed no competitive threat to multinational corporations now do so.
These emerging market leaders represent a major shift in the global competitive landscape — a trend that will only strengthen as they grow in size, establish dominance and seek new opportunities beyond their traditional domestic and near-shore markets.
In particular, we see the following trends ahead:
Leading emerging markets will continue to drive global growth
Estimates show that 70% of world growth over the next few years will come from emerging markets, with China and India accounting for 40% of that growth.
Adjusted for variations in purchasing power parity, the ascent of emerging markets is even more impressive: the International Monetary Fund (IMF)