The document discusses the rising economic power of Asia, particularly China and India. It notes that Asia will continue to be the global growth leader according to IMF forecasts. By 2020, the population of the "Asia 10" countries is expected to grow by 290 million people, with China accounting for 64% of the growth. The shifting economic center of gravity towards Asia presents both opportunities and challenges for businesses. Research can help companies adapt to the changing business and cultural environment in Asia and create new sources of competitive advantage.

1. Meeting the Needs
of a Rising Asia
OPPORTUNITIES AND CHALLENGES AS
THE BUSINESS WORLD SHIFTS EAST
BY MICHAEL STANAT, GLOBAL RESEARCH EXECUTIVE,
MARCH 8 2013, AIMRI BARCELONA CONFERENCE

2. Asia’s Century
 IMF predicts Asia will “remain the
global growth leader,” growing 2%
more than world average in 2013
 Asia recently overtook Europe by
having more millionaires.
 By 2020, “Asia 10” will likely add
290 mn people.
 Asia 10 is expected to surpass US
by 2016 & be 17% larger by 2020.
 China estimated to deliver most of
this growth (64%) vs India’s 17%
Other Sources: Capgemini, RBC, DBS Bank Singapore

3. Today’s China Market
 World’s 2nd largest economy
 Emerging middle class
 Local competitors
 Rising labor costs
 Reduced growth
 Yuan opening to the world
 Region becoming innovation hub
 New emphasis on consumption
 Chinese spending on property,
companies and tourism
 Economic activity in tier 2-5 cities
Source: McKinsey Quarterly
A need for insight amid change

4. Countries Depending on China

5. Rising Affluent Consumers
 China is the world’s top consumer of
Luxury Goods
 Tend to be younger
 Considered a reward
 Luxury market expected to grow 18%
 Champagne sales +33% each year for
past 3 years
 Growth despite high import fees and
markups
 Chinese traveling abroad
 Conspicuous consumption

6. eCommerce

7. Technology boom
 World’s biggest smartphone
market, overtaking U.S.
 China aiming to build world’s
largest 4G LTE network
 Plan to increase the country’s
online population to 800 mn
by 2015
 Cloud computing, ecommerce
& mobile payments
Photo: nextbigfuture.com

8. What’s next?
• Asia becoming the center of economic
gravity
• Opportunities
• Challenges
• Different approaches for insight
• New business & cultural norms
• New expectations & skill set needs
• Sources of competitive advantage
• As an innovation center
• Serving low-income consumers in the
developing world
• Cost advantages
All of this = Change!

9. Corporate Culture Changes
 Relationships vs
transactions
 “Guanxi”
 Group orientation
 Hierarchy
 Communication styles
 Face-to-Face
 Negotiation

10. Research Topics
 Branding & marketing mix
 Brand China
 Competitive Intelligence
 Innovation
 Operational efficiency
 Social Media
 Consumer loyalty
 New Product Development
 R&D
 M&A Due Diligence

11. SIS Global Growthtm
 Marketing & Communications
 Emerging markets consulting
 Strategic consulting
 Expert procurement
 Strategic planning support
www.sisglobalgrowth.com

12. Conclusions
China’s economy is in transition, amidst a major
shift east.
With increased development in China’s economy,
new opportunities & challenges exist for businesses.
Researchers have an opportunity to help clients
create value & be more competitive.

13. Quotations about growth
 “Growth means change and change involves risk, stepping from the
known to the unknown.”
 ---George Schinn
 “When you're finished changing, you're finished.”
 ----Ben Franklin
 “Be not afraid of growing slowly; be afraid only of standing still.”
 ----Chinese proverbs
 “It is only the very wisest and the very stupidest who cannot change.”
 ----Confucius
 “Change and growth take place when a person has risked himself and
dares to become involved with experimenting with his own life.”
 -----Herbert Otto