Global market research company Euromonitor International released today a new strategy briefing, “Cities of the Future: Emerging Market Champions”, highlighting the most developed cities in emerging markets alongside their business opportunities and challenges.
Despite being located in underdeveloped regions, top emerging cities feature elements of developed markets, including modern lifestyle, use of internet and high demand for quality products. The strategy briefing highlights 17 emerging market cities including Montevideo, Santiago, Dubai, and Shanghai.
“Expanding to these cities can be an interesting option for companies that are not yet ready to engage underdeveloped markets at full scale, but are looking for relatively safe expansion options,” explains Director of Strategy Briefings at Euromonitor International, Gina Westbrook. “However, because they are dramatically different from other cities in their respective countries, they require a well thought out business strategy.”
According to the strategy briefing, over the next 15 years, emerging cities will continue catching up with developed countries due mainly to more rapid economic growth. 14 out of the 17 cities discussed will grow in the number of households with income over US$45,000, which is considered an international benchmark for the middle class group in developed countries.
“A common characteristic among emerging cities is high discretionary spending. Due to higher disposable income and growing number of single-person households, the most developed emerging cities present a lower proportion of spending on basic items,” continues Westbrook. “As a result, there is more room for spending in leisure activities and non-essential products, making these cities an excellent starting point for consumer goods companies looking for expansion opportunities outside their home markets.”