'Emerging economies need to consolidate'

India needs to consolidate its market to enable its companies to compete with multi-national corporations (MNCs), Jagdish Sheth, professor of marketing, Goizueta Business School, Georgia, said at an international conference on 'Marketing Paradigms for Emerging Economies' at Indian Institute of Management, Ahmedabad (IIM-A) on Wednesday.

"Growth opportunities in emerging economies will require non traditional and local approaches to market development. Improving on affordability and accessibility will be the key areas of marketing and local brands from emerging economies will become global brands," he said.

Sheth said the twenty-first century will be driven by large emerging economies such as India, China, Brazil, Mexico and Russia.

"With the opening of Indian economy after 1991, MNCs could not eat the market share of the local players. Consolidation is need of the hour. The local brands of emerging economies are set to become global brands in the coming years," he pointed out.

China is the largest economy based on purchasing power parity (PPP) index and has just surpassed Japan. It will be the largest single economy by the year 2020, while India is the fourth largest economy and will become the third largest economy by 2020, according to BRIC report of Goldman Sachs.

"For improving acceptability in emerging economies, one needs local ingredients like herbal medicines (Dhanbar, Tiger Balm), soft drinks (Inca Cola, Vitasoy), local brands like Bacardi Rum, Absolut Vodka, Haier Appliances, Amul Butter and local approach like Lijat Papad (home made pickles and snacks), Bata Shoes and Amul Dairy," said Sheth.