Move over multinationals – the locals are coming.
Sound unlikely? Actually not, according to a new study by the Boston Consulting Group. It has identified 50 emerging market companies giving the big boys a run for their money in their own backyards.
These “local dynamos” – like Indian e-commerce company Flipkart, Chinese mobile-phone company Xiaomi, Bank Rakyat of Indonesia, Discovery Health of South Africa or Banorte of Mexico – may not be international names, but they have successfully carved out innovative domestic niches for themselves.
Why do they matter?
Well, put simply, their strategies – customised business models, digital and mobile solutions, flexible and fast growth – are paying off, as this graph shows eloquently local dynamos creating more value than their peers.
Source: BCG
BCG says:
Local dynamos are not global challengers, companies from emerging markets that are becoming worldwide leaders in their respective industries. Neither are they necessarily global challengers in waiting. They are simply thriving at home with a focus on local markets …These are markets that multinationals are still targeting, despite slowing growth – BCG recently surveyed 156 executives and found 78 per cent expected their companies to grow their share in emerging markets, and nearly as many identified local challengers as a bigger threat there than multinationals....MORE
