Emerging Markets

The Conrad Group has developed the following set of parameters to define emerging markets. It should be noted that these parameters are used as a basic framework and as such are subject to modification. Specific qualifiers include:

• Sound monetary policies
• Open market reforms
• Low or reduced tariff rates
• Emerging democratic process
• Increasing % of GDP spent on education and healthcare
• Growing middle class
• GDP growth above G7 average
• Rapid development of class B & C industries

Historically, those countries and regions now classified as emerging markets were considered to be backwaters in the world of international commerce. These countries typically maintained autocratic regimes, monopolistic industry structures, command economies and numerous import barriers.But over the past 10-12 years the changes have been dramatic. The changes are obvious and are manifested in the numbers. From 1990 to 1995 alone, Direct Foreign Investment in these regions almost doubled, going from 100 billion US dollars to 185 billion US dollars annually.

While emerging markets offer significant opportunities for growth, critical issues still remain. A lack of understanding of these unique challenges and the implications for the strategic planning process has led to mixed results with emerging market for international companies. The examples of failed entry strategies, forced exit and/or mediocre margin growth are numerous.

The Conrad Group maintains the challenge of maximizing shareholder value while minimizing the risk to shareholder capital through our in depth understanding of all aspects of doing business in emerging markets. By partnering with our clients, we consistently achieve success in these markets.