Tl0700 hgm outlook-slide_share_v5

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Global High Growth Markets Outlook 2015

Transcript of Tl0700 hgm outlook-slide_share_v5

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Global High Growth Markets Outlook 2015

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© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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Revenues on the rise

Business leaders no longer doubt the potential that High Growth Markets offer, and many already reap a significant portion of their revenues from these markets.

Source: Global High Growth Markets outlook survey, KPMG International 2015

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© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Market focus: India

Will Modi’s reforms be enough to encourage inbound investment?

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Source: Global High Growth Markets outlook survey, KPMG International 2015

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© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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High Growth Market investments are up

With expectations for High Growth Markets running high, most organizations say they have increased their investments into target countries. Many have invested more than US$100 million in the past year alone.

Source: Global High Growth Markets outlook survey, KPMG International 2015

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Market focus: China

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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Do not be fooled by what you read in the media: China’s economy is booming. And, as our report clearly illustrates, foreign investors continue to flock to China seeking new opportunities for growth.

Source: Global High Growth Markets outlook survey, KPMG International2015

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© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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Purchase or partner?

Organizations are using a variety of market entry strategies when expanding into new High Growth Markets.

Source: Global High Growth Markets outlook survey, KPMG International 2015

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© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Market focus: ASEAN

As the ASEAN Economic Community moves towards establishing more formal economic integration, our survey suggests organizations are waiting to see what the change will mean when practically applied.

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Source: Global High Growth Markets outlook survey, KPMG International 2015

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© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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Growing markets see growing interest

What makes one HGM destination more favorable than another? What issues are investors facing in HGMs? What can HGM governments do to improve the investment climate? Our survey reveals there are a variety of factors and challenges that influence investment decisions.

Source: Global High Growth Markets outlook survey, KPMG International 2015

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© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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Market focus: Africa

The vastness of Africa’s potential has been evident for centuries. The continent offers some of the greatest promise for those bold and resilient enough to invest in this rapidly emerging continent.

Source: Global High Growth Markets outlook survey, KPMG International 2015

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© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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Key highlights

of respondents said the outlook for HGMs is either promising or very promising.91%

of respondents with existing HGM operations said they had invested more this year into HGMs compared to last year.78%

of respondents said JVs, alliances and partnerships were the most common market entry strategy.38%

of respondents said consumer market growth influenced investment decisions.71%

China, India and Brazil top the list of planned investment, followed by Mexico, Singapore and South Korea.

Source: Global High Growth Markets outlook survey, KPMG International 2015

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© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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Global High Growth Markets Outlook 2015

This report is based on a survey of more than 300 senior executives conducted by Forbes on behalf of KPMG International that completed in early 2015.

Respondents represented multi-national companies across 16 develop market countries, including the Americas, Europe and Asia Pacific.

65% of respondents held executive-level positions and represented organizations that ranged from US$250 million up to US$20 billion in annual revenue. Access the full report

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© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services.

The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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