EMERGING BRANDS
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WRITER Jo Bowman
CREATIVE Shutterstock/ Ashleigh van Blerk
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It is predicted that out of 500 of the world’s hottest brands, one third will come from emerging markets by 2015. Domestic brands that have conquered the challenging home markets of India,
of India, China and aiwan could easily hina and Taiwan could easily become a threat to the world’s best-known companies as many now turn their attention to Europe and the US
Forget Coke versus Pepsi and Mac versus PC. The next big brand battles could well be Almarai versus Master Kong and Chery against Geely. The increasing sophistication in
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developing markets is starting to make a huge impact on the global brandscape when domestic brands decide to pursue international aspirations. Nimble, hungry, and already successful in some of the world’s most challenging markets, they’re what Interbrand calls “the fresh breeze emerging from the storm”. “Brands from emerging economies will increasingly become household names,” says Graham Hales, global chief communications officer, Interbrand. “Technology makes it easier for every brand to expand its global footprint.” The findings echo research by US business consultancy Bain & Co, which
estimates that one third of the FT Global 500 companies could come from emerging markets by 2015, thanks to what it calls a “seismic shift” away from developed markets.
DRIVE MY CAR The automotive sector is the first to see it. “A massive shift in the competitive landscape will see China and India emerge as major players,” says analyst Deloitte in its report ‘Accelerating Toward 2020’, which predicts that in a decade’s time just 10 motoring groups will account for 90% of global sales. Indians aren’t the only drivers excited
by the idea of Tata’s $1,000 car, or Mahindra & Mahindra’s road and farm vehicles, which have seen the company make it onto Credit Suisse’s ‘27 Great Brands of Tomorrow’. Geely, the Chinese fridge manufacturer turned carmaker, has
little over a decade’s experience in motoring, but the company’s founder is aiming to sell two thirds of production outside the country in the future. It has already made headlines with a deal to take over Volvo from Ford. Chery, the first Chinese carmaker to export its vehicles, is another to watch. A new wave of food and drink
brands are also poised to take off, with consultant Wolff Olins tipping four brands destined for global stardom: Chinese winemaker ChangYu; Indian liquor group United Spirits; Lebanese chocolatier Patchi; and Almarai, a Saudi dairy and fruit juice company. Its fifth is Colombian coffee chain
Juan Valdez Café, already present in the US, Spain, Chile and Ecuador. Its intellectual property director, Luis Fernando Samper, says: “We are confident we can make in-roads in other Latin American countries and the Caribbean. We also see opportunities in coffee-consuming countries in Northern Europe and the Middle East.” As it expands, the new Starbucks
knows it must sell not just quality coffee
46 M&M Q2 2010
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