Sunday, August 11, 2013

Possibilities and Realities of Emerging Markets


If they're not already, senior executives need to be thinking about emerging markets very seriously, if they're truly serious about growth, so says McKinsey. The possibilities should make them salivate, just by thinking about these.

The realities, however, aren't so easy to grasp, let alone take advantage of. Think about this: Suppose you were to dispense with your CEO moniker, and don spandex Ts and shorts and pursue a qualifying spot in track-and-field at the next summer Olympics. A daunting proposition, right? But think about pursuing a spot on the decathlon. That's 10 events you'd have to be good at, instead of just 1. In one evocative metaphor, McKinsey gives us the lowdown on the challenges of actually capturing these emerging markets! 

McKinsey research shows that the largest companies headquartered in developed economies currently derive only 17 percent of their revenues from emerging markets, even though these markets already represent 36 percent of global GDP.

In this video, McKinsey experts Yuval Atsmon, Peter Child, Richard Dobbs, and Laxman Narasimhan offer an overview of the opportunity—and why executives are paying attention to this driver of global growth among new consumers. Find some of our best thinking on emerging markets in "Winning the $30 trillion decathlon."

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