Branding News South Africa

Presentation highlights SA's opportunities in emerging markets

Donovan Neale-May, executive director of the Chief Marketing Officer (CMO) Council gave a presentation on Challenger Brands in South Africa at the Gordon Institute of Business Science late last week.

He noted that the McKinsey Institute research predicts that the share of Fortune Global 500 companies based in emerging markets will exceed 45% by 2025, up from just 17% in 2000. What is making these new contenders successful and which countries of the world are likely to benefit the most from the globalisation or regionalisation of their indigenous brands?

Presentation highlights SA's opportunities in emerging markets

Strategies and challenges

Many of these emerging market multi-nationals are category innovators, market disruptors and opportunistic acquirers of entrenched Western brands. They use frugal design, lean production, new technology, large cash coffers and economies of scale, from contract manufacturing and robust local markets to compete with slow moving and less agile incumbents.

What challenges do they face and what strategies are they employing to enter and expand in Western markets? Which companies from Africa are leading the charge and how are they gaining competitive advantage globally?

He believes South Africa will likely be a big winner in the emerging market sweepstakes. A good number of Africa's top 55 billionaires are South African industrialists and corporate leaders.

International icons

Some of its international entrepreneurs, like Elon Musk, Sol Kerzner and Mark Shuttleworth, have become global innovation icons and large home-grown companies, such as SABMiller, Richemont, MTN, Naspers, Standard Bank, FirstRand, Old Mutual, Discovery, Liberty Life, Nando's and Shoprite are well positioned to multiply their presence in Africa and other foreign markets.

His presentation looks at what has created success for some of the 1000 companies with revenues of over $1 billion that are now based in developing economies. He also reviews some of South Africa's most valuable brands and some of the key performance indicators of these global market aspirants. Download the presentation at

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