IS2009 BRICandBeyond d2 VP Changes

8/14/2019 IS2009 BRICandBeyond d2 VP Changes

1/44


2/44

Iconosphere 2009

BRIC and Beyond:Laying the Foundationsfor a Global Future

Jeff YangVP, Consumer StrategistGlobal View

Valeria Piaggio

VP, Consumer StrategistGlobal View

Shreya MukherjeeDirector, Consumer StrategistGlobal View


3/44

The E Opportunity: Why Emerging Markets areimportant for marketers tomorrowand today

Getting to know the E Consumer: Three criticalforces driving consumption and growth

Bringing it back to business: How to takeadvantage of the E Opportunity even if yourbrand is domestic

Agenda


4/44

Consumers spending power inemerging economies is expected torise from $4 trillion in 2006 to more

than $9 trillion by the middle of thenext decade. By that time, almost abillion people will enjoy incomes of at

least $5,000 per year.Economist5.15.08


5/44

According to World Bank researchin 2000, developing countries were

home to 56% of the global middleclass, but by 2030 that figure isexpected to reach 93%.

Knowledge@Wharton 9.7.08


6/44

More and more economists thinkthe United States and the rest of theworld may be moving in differentdirections.

Newsweek2.4.08


7/44

Emerging Opportunity

Shelter from the storm. With the global economy in a downwardspiral, the fast-growing EM economies offer greener pastures wheregrowth is still robust, and products and brands can still flourish.

Photo courtesy of Luciana Stein, Iconoculture Cultural Fluent, Brazil


8/44

Coming into their own. Unlike developed markets, EM countrieshave a rapidly expanding consumer base due to higherbirthrates and/or the move of big parts of the population up fromthe bottom of the pyramid.

Aspiring toward more. Its not just the size its the rise. EMconsumers are surging into the middle class,with boomingdisposable incomes and a growing taste for the finer things.

The power to spend. The rising income of EM consumers isbeing further boosted by two critical factors: strong localcurrencies and increased access to consumer credit.

Emerging Opportunity


9/44

Brazil

RussiaIndia

China

BRIC


10/44

What sets apart the BRIC countries?

BRIC: Brazil, Russia, India, China

MASSIVE GEOGRAPHICAL SIZE

DEEP RESOURCES

HUGE POPULATIONS


11/44

Sources of Power

BRIC


12/44

Brazil: Coasting as Commodities Soar

A large share of the world's beef, orange juice, soybeans andiron ore comes from the great green elbow. (Economist4.17.08)

BRIC countries source of power

Top left: Flickr.com/Photos/LFCastro image; bottom left: Flickr.com/Photos/Giselleimage; middle: Flickr.com/Photos/Estarsid image; right: Clarin.com image


13/44

Russia: Plenty in the Tank

Russias GDP has beengrowingan average of 7% per year forthe past decade.

Real disposable income hasnearly doubled in the past fiveyears (Economist6.5.08).

Goldman, Sachs & Co. predictsRussia will be the worldseighth-largest economy by2025, with a per capita incomeof $45,000 (BusinessWeek2.20.06).

BRIC countries source of power

Flickr.com/Photos/Vtwhitelight image


14/44

People as a primary resource

Chinas growth has been driven bymanufacturing, but its building itspostindustrial base.

India has succeeded in sectors like

IT, software and pharmaceuticals,but is investing in industries likeautomobiles and computerhardware.

The two have complimentary

strengths and an increasingly warmrelationship. The implications for thefuture are profound.

CHINDIA: China and India

Photo courtesy of Naudia Lou, Iconoculture Cultural Fluent, China


15/44

CHINDIA: China and India

What happens when the two biggest and fastest growingcountries in the world join forces?

Together, the dragon and the elephant rule the world.

Left: Photo courtesy of Naudia Lou, Iconoculture Cultural Fluent, China;right: photo courtesy Anindita Sengupta, Iconoculture Cultural Fluent, Inda


16/44

Frontier markets or the Emerging Emerging

This next bloc of EMs includes high-profile economieslike Mexico and Turkey, but also unfamiliar ones suchas Bangladesh, Egypt, Indonesia, Iran, Nigeria,

Pakistan, Philippines and Vietnam.

With their large and growing populations, thesecountries have the capacity for the kind of growth thatover the next several decades may rival the BRICs, andare certain to far outstrip the G7.

The Next Tier


17/44

GlobalEconomy

InternationalPolitics

Business

Culture

Worldwide Impact


18/44

The EM-Effect: International Politics

Flickr.com/Photos/Nafmo images


19/44

The EM-Effect: Global Economy

IMAGE SOURCE


20/44

The EM-Effect: Business

60 ofFortune magazines top 500 global companies arenow based in emerging markets.

Left: NEED IMAGE SOURCE; right: photo courtesy of Sairica Rose,Iconoculture Cultural Fluent, Spain


21/44

The EM-Effect: Culture

Left: Photo courtesy of Luciana Stein, Iconoculture Cultural Fluent, Brazil;top middle: photo courtesy Sairica Rose, Iconoculture Cultural Fluent, Spain,bottom middle: photo courtesy Jason Hughes, Iconoculture Cultural

Fluent, Canada; right: photo courtesy Lindsay Paterson, IconocultureCultural Fluent, France


22/44


23/44

LeapfroggersShedding the shackles of poverty, communism, economic crisis or nonexistentconsumer credit, emerging consumers are embracing consumption at broadband

speeds. The jump to adopt new products and services is quite abrupt and oftenmisses some steps in between. And even though recent economic woes havedeaccelerated the pace, the emerging consumer has tasted the good life and is notabout to give it up.

Left: Photo courtesy of Anna Coppola, Iconoculture Cultural Fluent, Russia;others: photos courtesy of Paula Alvarado, Iconoculture Cultural Fluent, Argentina


24/44

Leapfroggers

Photo courtesy of Anna Coppola, Iconoculture Cultural Fluent, Russia


25/44

Leapfroggers

Photos courtesy of Anna Coppola, Iconoculture Cultural Fluent, Russia


26/44

Leapfroggers



27/44

Leapfroggers

Photo courtesy of Paula Alvarado, Iconoculture Cultural Fluent, Argentina


28/44

Metatrend: Mobility

Key values: aspiration, access,empowerment, savvy

Leapfroggers

Photo courtesy of Anna Coppola, Iconoculture Cultural Fluent, Russia


29/44

Video to be inserted here.

Leapfroggers


30/44

Glocal AspirationsGlobal with a local twist seems to be the right concoction. Emerging-marketconsumers are eager to adopt what they see as a more modern and cooler lifestyle

while adapting those things to their particular needs, preferences and wallets. Someproduct categories require more localization than others: food/beverage, fashion andhealth/beauty are areas where taste, tradition and other cultural factors are at play.

Left: Photo courtesy of Anindita Sengupta, Iconoculture Cultural Fluent, India;middle: photo courtesy of Anna Coppola, Iconoculture Cultural Fluent, Russia;right: Flickr.com/Photos/Betchaboy image


31/44

Glocal Aspirations



32/44

Glocal Aspirations



33/44

Metatrend: Complexity

Key values: experience,discovery, tradition, growth

Glocal Aspirations

Photo courtesy of Anindita Sengupta, Iconoculture Cultural Fluent, India


34/44


Glocal Aspirations


35/44

Women PowerWomen in emerging markets are generating a new wave of feminism that is uniqueto their cultures, characterized by the desire to balance new and traditional roles.

This movement is marked by big strides women are making in education, healthand business, as well as smaller ones in politics. There are everyday wins as well,from who does the dishes to who drives the family car (or fixes it, for that matter).Big or small, all improvements count. The result? EM women are changing history,their local economies, their families and their own lives.

Left: Photo courtesy of Patrick Corcoran, Iconoculture Cultural Fluent, Mexico;middle: photo courtesy of Luciana Stein, Iconoculture Cultural Fluent, Brazil;

right: photo courtesy of Juliana Medrano, Iconoculture Cultural Fluent, Argentina


36/44

Women Power

NEED IMAGE SOURCES


37/44

Metatrend: Complexity

Key values: empowerment,power, change, growth

Women Power

Photo courtesy of Luciana Stein, Iconoculture Cultural Fluent, Brazil


38/44


Women Power


39/44

Brazil: Casas BahiasCategory: Retail

Selling Affection

CasasBahia.com.br image; YouTube.com video


40/44

Russia: IKEACategory: Home

An Agent of Change

Left: RussiaWithLove.Blogspot.com image; right: Carpetblog.typepad.com image


41/44

Please insert video herehttp://www.marutisuzuki.com/commercials.aspx

India: Maruti SuzukiCategory: Auto

Unity in Diversity

CarsIndia.org image; MarutiSuzuki.com video


42/44

China: Olay (P&G)Category: Beauty

Connecting with Todays Women

Middle: FMD1.com image; others: Olay.com.cn images


43/44

Todays centerless world wont be that centerlessanymore, not when Chindia is poised to be thenext global superpower.

Emerging nations will be dominating, and brandsthat did not get acquainted with those marketsand their millions of consumers will have to dotoo much, too late.

Key takeaway: The world of 2020


44/44

IS2009 BRICandBeyond d2 VP Changes

Documents

Transcript of IS2009 BRICandBeyond d2 VP Changes