Giant emerging-market firms continue to advance everywhere
Together the emerging-market countries now have more than 1,000 firms with
annual sales above $1 billion. Many are content to stay at home—after all, their
markets are growing at least twice as fast as the rich world’s. But some are determined to venture abroad, invading foreign markets and buying
foreign companies. They are sharpening old skills and acquiring new ones. And in
the process they are reconfiguring entire industries.
The Boston Consulting Group (BCG) has been producing an annual study of the top
100 such “global challengers” from emerging markets since 2006. To qualify,
besides having revenues above $1 billion, challengers must have a broad global
footprint, with foreign revenues equal to at least 10% of the total, or $500m.
Their global aspirations must also be credible, as measured by a combination of
objective criteria and a poll of industry experts.
First, the new list is notable for its variety. In 2006 it was dominated by 84
companies from the four BRIC countries—Brazil, Russia, India, China—including 44
from China alone. In 2013 it includes firms from 17 countries, up from ten in
2006, and only 30 Chinese ones. In 2006 the list was dominated by heavy
industries. Today it looks more consumer-oriented, with firms in financial
services (China UnionPay), e-commerce (Alibaba Group, also Chinese), health care
(South Africa’s Aspen Pharmacare) and food manufacturing (Indonesia’s Golden
Agri-Resources).
