How income distribution data are key to capturing opportunity in emerging markets
Economic Intelligence Unit report say that, "Although emerging markets present large opportunities for multinational companies, uncertainty and high variability pose
challenges to developing confident growth strategies. This EIU Canback special report shows how income distribution data provide a solution to these challenges by offering a detailed and nuanced understanding of market dynamics. We show that subnational differences and the composition of income brackets across geographies play a key role in identifying market opportunity. Furthermore, we show how predictive models can leverage income distribution data to provide more accurate and actionable results for multinational companies looking to capture potential in emerging markets."
EMERGING MARKETS: OPPORTUNITIES AND CHALLENGES
Understanding where to play remains a significant challenge for companies. As growth has stagnated across many developed consumer markets, multinational consumer goods companies are pushed to look further afield. But the search for growth can be fraught with danger. HSBC’s withdrawal from Brazil and Turkey in 2015 and Nestlé’s scaling back in Africa in the same year are two notable examples.
So is there an approach that can help to more accurately assess the market potential for international expansion?
The answer lies with income distribution data, which allow companies to accurately assess potential opportunities and prioritize market expansion. Unlike national averages, distribution data provide a nuanced picture of both socioeconomic and regional differences across markets.
Income distribution models can be further augmented to include additional factors, which allow for a deeper understanding of market dynamics.
To properly assess market potential in emerging markets, companies must move beyond simple averages and analyse income distribution data in the context of a globally relevant framework.
More information of the report is found
here
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