BRAND BREAK­OUT

How emerg­ing mar­ket brands will go global

The Australian - The Deal - - Ideas and Books -

Nir­malya Kumar and Jan- Bene­dict E.M. Steenkamp; Pal­grave Macmil­lan, 256pp.

What hap­pens when com­pa­nies in the de­vel­op­ing world de­cide sup­ply­ing low- cost com­modi­ties to big first- world brands is a mug’s game? We are about to find out as Asian or­gan­i­sa­tions start mov­ing up the food chain. Kumar and Steenkamp ex­plain how th­ese com­pa­nies will do it, map­ping out eight ways to go global. Many of the busi­nesses ex­pand­ing out of their home mar­ket are Chi­nese com­pa­nies, which are us­ing their mas­sive cash­flow to buy a stall in the cap­i­tal­ist bazaar. How they will fare when they have to out­smart, rather than buy, busi­nesses is the ques­tion. Al­though the an­swer is ob­vi­ous for one of the largest cat­e­gories, the national cham­pion route. Yes, the au­thors ar­gue, the model can work, cit­ing Emi­rates (though not the mass of national flag car­ri­ers that are no more). How­ever, it gen­er­ally doesn’t, as demon­strated by Malaysia’s dis­mal national car pro­ject, the Pro­ton. That France once cited yo­ghurt as a strate­gic national re­source demon­strates what hap­pens when gov­ern­ments get into busi­ness.

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