Last updated: 12:59 / Friday, 26 July 2013
Robeco's Consumer Trend

Decalogue for world conquest

Decalogue for world conquest

Emerging companies are standing up to the West in the global market. Until relatively recently, brands like Acer Electronics, Corona Beer, Emirates Airlines, Tata Motors and Concha y Toro wines were names unknown to the public.

In a new book, "The launch of the brand: How brands become global emerging", Nirmalya Kumar and Jan-Benedict Steenkamp, discusses how emerging companies are learning how to position itself in the global market. In what may be termed the emerging consumer Decalogue, the authors set out eight steps.

The more traditional so far has been selling cheap products to gain market share and gradually raise the quality and prices. This is the strategy followed by Pearl River, a world leader in pianos, or appliance maker Haier, both Chinese companies.

A second alternative is to focus on business customers, then go to the final consumer. An example is Mahindra & Mahindra, the Indian company that began manufacturing tractors and now produces cars.

The third is to follow immigrants and sell their products in their host country, as did Goya Foods or Bollywood films in the United States. Or take advantage of tourism and local produce market once tourists return home. Corona beers or Mandarin Oriental hotels are two good examples.

Another strategy is to buy directly prestigious Western brands such as Tata Motors has made to acquire Jaguar Land Rover, or Lenovo IBM Thinkpads.

The authors point to other steps, such as the one followed by Brazil Havaianas, relying on the image of beach and fun, and the Chilean Concha y Toro in the country's beauty, or institutional campaigns "country brand" as being launched India or Taiwan.

Emirates is a good example of how to achieve success by creating a brand image. The airline of Dubai has grown at double digits in recent years, making the country a center for business and tourism.
One of the main components of the strategy of Robeco Consumer Trends emerging consumption both Western companies positioned in the developing countries as companies from these countries are making headway in the most advanced markets. Global brands enjoy much higher margins to local.