As many of the mature markets in the west continue to struggle with slow market growth and aging consumer populations, companies around the world are looking to High Growth Markets (HGMs) as a way to stimulate and sustain growth over the long term.
One would be hard-pressed to deny the growing influence of High Growth Markets (HGM). Massive consumer growth, increasing prosperity, greater rule of law and young populations all create significant opportunity for those organizations ability to execute a successful HGM strategy.
But while investment into the HGMs is clearly on the rise, our experience suggests that many organizations continue to struggle to expand outside of their existing markets. For some, a lack of insight into the local market environment is creating uncertainty. Others are working to identify the right market entry models and the right local partners to reduce their risk while maximizing their reach.
To better understand the key challenges, opportunities and market entry strategies at play in the HGMs, KPMG International conducted an indepth survey of more than 300 senior executives across North America, Western Europe and the developed markets in Asia.
What we found was a high level of optimism for the HGMs in general, but significant barriers and challenges in each individual market. And while investment is set to increase, much of that new money will be funneled into existing HGM operations – likely in China, India or Brazil – rather than expanding into new markets.
Looking ahead, however, we see great promise in those markets now emerging across Africa, the Middle East and in the ASEAN region. Recognizing this, the report also includes keen insights and valuable context from our market leaders across a number of current and prospective investment regions.
We hope that this report provides organizations with practical and actionable insights to help shape and drive their HGM strategies.
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