Local knowledge comes home to nest
While growth in China and India has slowed recently, the expansion in these markets continues to be significant and attractive compared with the roughly 1 per cent growth in developed economies. This sustained and continued growth has led to a quiet but massive shift: the future of growth has shifted to Asia.
The implications for Asian companies are far-reaching.
For the first time in modern history, growth is in these firms’ home markets, which gives domestic players an advantage because they know the consumers better than foreign entrants; have a better understanding of the local regulatory and political environment; and can manage better in a more volatile environment, which is the norm for emerging markets.