Most Companies See Growth In Developing Markets

Most companies like Avon (AVP), Campbell Soup (CPB), Coca-Cola (KO), PepsiCo (PEP), H.J. Heinz (HNZ) and Procter & Gamble (PG) are depending on the developing markets of Asia/Pacific and China for growth.

In spite of the current economic meltdown, sales growth has been recorded across companies for this segment. For example, Avon’s sales grew 9% in China while Procter & Gamble saw sales growth of 11% in the Asia Pacific region. In addition, soup companies such as Campbell Soup are also targeting markets, including China (Shanghai is the leading soup market in China with highest per capita soup consumption with almost 72% of the population consuming a bowl of soup everyday) for expansion. Also, in case of Heinz, Asia accounts for a big market, although sales in 2009 increased only 1.6%, primarily due to currency volatility.

Many more companies are trying to expand their operations in the developing markets and in China due to the huge untapped potential.

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Comment by Dr Sebastian O. Uremadu

2009-06-26 11:24:50

Yea, no doubt , ASIAN/Pacific region seems to be the thing for the emerging markets now due to the culture and high IT base of the zone .More-over, the zone is noted for its richness in spiritual and material wealth. It is the zone ie middle-east , of the great religions:Christianity(JESUS), Islam(MOHAMMED)and Israel.The land is indeed blessed with milk and honey. In 2007 when I attended a conference in Tunisia, I passed through Egypt. It was then I saw that these countries are very rich in foods(fruits vegetable, and other foods). They also have good tourism potentials, etc. So their places are very natural and they have the market. The zone has potentials to help salvage the ongoing global financial crisis. African countries like Nigeria, and others , to some extent, have such potentials and the word has to exploit them. THANK YOU.

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