Next Global Brands Arriving from Emerging Markets
By Tom Ryan
The days of
global dominance by Western brands may be numbered. Research from a U.K.
consulting firm predicts that due to shifts in global economic wealth,
many of the next mega brands are likely to emerge from Asia, the Middle
East or South America.
the consultants behind the London 2012 Olympics
logo and the Product Red campaign, highlighted five food and drink brands
from emerging markets that have the potential to become global brands.
They consist of Juan Valdez Café, a Colombian coffee chain; Almarai,
a Saudi dairy and fruit-juice company based in Riyadh; Patchi, a Lebanese
boutique chocolate chain; ChangYu, China’s biggest wine producer; and
United Spirits, India’s largest liquor group, which owns Scotch whisky
Whyte & Mackay.
“It used to
be possible to be a global brand by dominating the U.S. market,” Melanie
McShane, a strategist at Wolff Olins, told the Financial
changing rapidly. Now you have to be number one in Asia.”
Bain & Co.,
the Boston-based consultancy, similarly forecast last year that the number
of companies based in emerging markets featured in the FT
Global 500 – a
ranking of the biggest corporations – will
increase from roughly 10 percent in 2001 to around 25 percent in
2015. Bain attributed the change to what it called a “seismic shift” away
from developed markets.
Bain’s estimates, representation from Western Europe in this group is
expected to stay largely constant over the timeframe, but Japan and Australia
could see their totals fall by around a third. The number of firms based
in the U.S. and Canada is expected to erode from around half to under
40 percent by 2015.
a Singapore-based partner with Bain & Co, told the Financial
established western consumer goods brands were being forced to “battle
it out” with emerging market brands. In response, PepsiCo last year bought
Lebedyansky, Russia’s largest juice group, and Unilever picked up Inmarko,
Russia’s biggest ice cream brand. Coca-Cola was blocked this year by
Chinese regulators from acquiring Huiyuan, China’s biggest juice group.
Diageo is in talks over acquiring up to 15 percent stake of India’s United
Spirits, while PepsiCo this year formed a joint venture with Almarai
in Asia, Africa and the Middle East.
release of the 2009 Superbrand survey of the U.K.’s top 500 consumer
brand was still dominated by Western names such as McDonald’s, Krispy
Kreme, HMV, Microsoft, Google and the BBC.
Do you expect to see more global brands coming from emerging markets?
If so, when and how should Western brands – especially U.S.-based ones
- World’s next top brands set to rise in the
east – Financial Times
- Emerging markets house future
big brand – World Advertising
- Superbrands Top 500 Brands – 2009/2010 – Superbrands