Employment Counselling and Career Development
Many firms across the globe have realized the necessity of employment counselling. One of the reasons is to create a quality workforce along with desired skills and competencies in order to utilize them to maximum possible extent. In today’s highly turbulent and ever-changing environment, keeping a pace with the latest developments and surviving the cut […]
America’s Response to China’s Belt and Road Initiative
China ambitious Belt and Road Initiative has attracted the attention of many economists worldwide. Many of these economists believe that the Belt and Road Initiative is part of China’s vision of a world where America will no longer be the dominant superpower. It is possible that this may be true. China has committed a large […]
Defining Organizational Purpose in the Post Pandemic World
The pandemic induced by the Corona Virus has fundamentally changed the way organizations operate. However, the counter measures taken then were simply firefighting, knee jerk reactions by organizations to a curveball thrown their way due to the disruption of normal working conditions. But will those changes and efforts measure up in the post pandemic world? […]
Green Pensions
The amount of money that is managed by pension funds is huge. Since pension funds have large amounts of money which they can use to invest in the market, they are known for being trendsetters in the investment community. It is for this reason that pension funds are being used by governments all over the […]
What is Bond Valuation and How is it Calculated ?
One of the Most Important Uses of Discounting The present value of a bond is the sum of all the future cash flows that can be derived from it. In this sense, the valuation of bonds really becomes simple, isn’t it? All we need to do is find out the future stream of payments that […]
Studies have shown that the number of cities in emerging markets is growing. Now, there are nearly 700 emerging market cities with populations of more than half a million and this number is expected to grow in the years ahead.
The proliferation of Tier II cities alongside the megacities is perhaps the biggest noticeable trend in recent years. It has been estimated that nearly 1.2 million people move to the cities every week. This means that over the next twenty years, there would be a net migration of around 1.4 Billion to the cities in the emerging markets.
Since the megacities would not be able to hold all these people, most of the growth would come from the next rung of cities or the Tier II cities where the rapidly urbanizing populations would aspire to western standards of living and hence, their consumption patterns would be lucrative for multinationals and international businesses seeking to enter these markets.
It has been estimated that about 125 Million Households would enter the middle class in emerging market cities between 2010 and 2025. This means that international businesses ought to be prepared to deal with these consumers.
As a recent book put it, the $10 Trillion Prize that is up for grabs in the emerging markets means that the opportunities are there for the asking for international businesses.
However, the challenge before international businesses is that they would have to completely redraw their business models and rework their strategies because of the complexity of the consumer base that is emerging in these markets.
For instance, a recent survey has revealed that only 13 percent of international businesses are ready for the growth in the emerging market cities whereas a large number of them (around 73 percent) say that they are cognizant of the growth potential in these emerging markets.
Companies like Yum! Foods which is the owner of the KFC and Pizza Hut Brands has adapted itself to the Chinese market and has tripled its market share by targeting the local consumers and offering them menu choices that are more palatable to their tastes.
Further, international businesses must be cognizant of the logistical and distributional challenges that are peculiar to emerging markets apart from their branding and marketing activities.
Apart from this, the international businesses have to contend with smaller players who are nimble and agile and what are known as “mom and pop” stores. For instance, the Chinese and the Indian markets are dominated by the Kirana and the local groceries and international businesses should price their products and reorient their strategies accordingly.
The point here is that the hybrid consumer and business landscape ought to be targeted accordingly and the complexity of the strategy must reflect this aspect.
In conclusion, emerging markets represent an opportunity that is there for the taking and hence, the international businesses must seize this chance to expand their operations and grab a share of the large pie that is available.
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What the Current Wave of Protectionism and Populism mean for the Future of Globalization and Free Trade
February 12, 2025
