McKinsey Global Institute report
In its Aug. 2012 quarterly report the following fact based information which might contribute to decision making on critical policy issues are included.
- The two leading emerging economies of China and India are experiencing roughly ten times the economic acceleration of the Industrial Revolution.
- By 2025, for the first time in world history, the number of people in the consuming class will exceed the number still struggling to meet their most basic needs.
- By 2025 MGI estimates annual consumption in emerging markets will rise to $30 trillion, up from $12 trillion in 2010.
- Even under the most pessimistic scenarios for global growth, emerging markets are likely to outperform developed economies significantly for decades.
- Consumers in the emerging markets are shaping, not just participating in the digital revolution and are leapfrogging developed-market norms.
- Companies failing to pursue consumers in these new markets will squander crucial opportunities.
- On average, emerging consumers are younger and more optimistic than their counterparts in the developed world.
- In China, more than half the urban population is online. In India, consumers are avoiding traditional media and PC to embrace mobile devices.
- Unskilled workers may be plentiful in emerging societies, but skilled managers are scarce and hard to retain.
- No matter where successful businesses operate, they need the support of key stakeholders in government, civil society, and the local media.
- As emerging markets contribute a greater proportion of the global savings pool, investors there could offer a crucial new source of funding.
- The rise of the emerging world’s new consumer class is the greatest competition of our age for business. Emerging markets offer the best hope for future prosperity.
Professor Mekonen Haddis