The briefing, Megatrends: Shifting Market Frontiers - Cities of the Future, examines the consumer and economic growth prospects in 600 cities of emerging and developing countries. Using a range of indicators including future GDP prospects, internet access rates, and disposable income trends, the report identifies 10 cities of the future which are expected to show the most favourable prospects for consumer-driven businesses.
Dhaka, Manila, Bangalore, Kuala Lumpur, Delhi, Shenzhen, Mumbai, Hefei, Xiamen and Ho Chi Minh City are the 10 identified cities of the future among 600 emerging and developing cities. Their robust performance is based on encouraging consumer spending prospects, large market size and rapidly growing consumer wealth.
All 10 identified cities of the future are in developing and emerging Asia. This highlights the robust consumer spending prospects for the region, which is anticipated to account for 44% of global consumer expenditure growth over 2021-2040.
African cities are displaying fast population and economic growth, especially in the sub-Sahara region. Despite their rapid ascent, they will still have relatively small market sizes and low-income consumers by 2040 - two factors that are hindering sub-Saharan African cities from appearing higher in the city of the future rankings.
Seven of the 10 identified cities of the future will be megacities (cities housing 10 or more million people) by 2040, while the remaining three are large cities (five or more million). Megacities and large cities concentrate substantial economic and commercial weight, making them attractive to consumer-driven businesses.
By assessing the cities of the future based on consumer wealth, growth prospects, levels of digitalisation and market size, investors can gain a better view of the scope and dynamics of success their business can expect. It is important for investors to identify the underlying characteristics of cities and invest in their strengths.
Urban consumers in cities of the future will see a marked rise in the number of internet users. This is expected to deliver opportunities in retail, banking and mobility as more people take advantage of new business models and services.
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