The annual flagship publication from PwC’s Growth Markets Centre (GMC), is focused on understanding growth opportunities in developing markets, in an era marked by sluggish global growth and rising economic and political uncertainties in the developed parts of the world.
The report discusses growth prospects for private sector players across six focus sectors, including agriculture, the social sector (health & education), manufacturing, retail, financial services and connectivity (transport & communication). It further highlights major capability areas to be developed by firms looking to succeed profitably in addressing these opportunities. Key highlights include:
The first part of the report focuses on separating reality from the rhetoric around growth markets, by viewing growth prospects in these regions through a deeper multi-dimensional lens. Growth markets are on the verge of a new era in which they are projected to account for 60% of global growth within the next 5 years. This will create significant opportunities for private sector players looking to create and deliver value to billions expected to join the middle class over the coming decades. This section establishes that growth markets are not ‘volatile’ but rather ‘maturing’ in nature, with different markets following distinctive growth journeys towards stability and long-term prosperity.
A major part of the report focuses on understanding shifts governing the market and operational landscape across six sectors essential to achieving balanced economic and human development in the coming years. These shifts – including evolving demographic and consumer dynamics, the emergence of new technologies and business models, and the need to address resource and infrastructure gaps – are expected to create significant growth opportunities for private companies across the spectrum, i.e. for large multinationals looking to lead change, smaller enterprises playing key roles in local supply chains and next-generation entrepreneurs leading the development of new products and operating models.
The final part of the report discusses capabilities required to navigate through the complex business environment and institutional voids associated with growth markets. In order to explore the opportunities highlighted in the report, companies will need to develop flexible business models which are more suitable for the local market, while developing new capabilities based on the three foundations of operational efficiency, innovation and go-to-market excellence.