First Steps to Success in Emerging Markets

Introduction

Scope

introduction

Key finding

The first and most important step to success

Assessing market potential: factors affecting selection

Market

A deep knowledge of the market

Macroeconomic stability: look below the surface

Indonesia and the Philippines side-by-side

There is usually a trade-off between size and growth

Where is the next China?

The middle class is a crucial segment

Middle class spending priorities vary dramatically

The Colombian and Peruvian middle class contrast sharply

IKEA: Targets the middle class with huge success

Openness is central to success

The trade to GDP ratio can indicate openness

FDI can signify market attractiveness

Turkmenistan: A star FDI performer but scant economic freedom

Reception to new ideas

Population

Population matters

The demographic landscape

Size and growth: India and China compared

Age structure adds another dimension

Vital statistics are…Vital!

population

Urbanisation and city configurations

Access

Making an entrance

access

Infrastructure can add significant costs

A lack of Internet access complicates brand building

Social networking is a key tool

Go it alone, partnership or acquisition?

Understanding the nature of retailing

Colgate overcomes distributional challenges in Cameroon

Business Environment

A business environment fit for purpose

Business environment

The practicalities of doing business

The regulatory burden can be a barrier to e ntry

Minimising the impact of corruption

The challenge of finding and retaining talent

Coca-Cola’s Sari Sari store training

conclusion

Convey methodological clarity to emerging market selection

The factors in our model are relevant to any sector

But their importance may vary from business-to-business

Other company-specific factors should be added to the mix

---