Shoppers 'offer great business opportunities' for companies

The "uneven" growth of China's consumer class and those in other developing markets presents "tremendous potential for companies" if they choose to play in fast-growing categories, according to a report by consulting firm McKinsey & Co.

Two girls select scarf at a shop on September 24, 2013 in Beijing. [Photo/Asianewsphoto]

The report said that by 2025, when the number of consumers worldwide has reached 4.2 billion, those with discretionary income will, for the first time,outnumber those struggling to meet basic needs. That development presents "what may well be the biggest opportunity in the history of capitalism," according to the report.

For instance, United States-based beverage giant Coca-Cola Co, "recognizing Chinese consumers' preference for pulpier juices", in 2004 launched Minute Maid Pulpy, which had a thick texture adapted to Chinese tastes and included bits of fruit, according to the report. The fruit juice became China's most popular fruit juice brand in seven years and Atlanta-based Coke's first brand to reach $1 billion in emerging markets.

In another category waiting to be tapped, the report said the growth rate of the skin care market in Shanghai is projected to triple that of the entire nation of Malaysia.

Multinational companies aren't the only potential beneficiaries as the consumer goods landscape is redrawn, according to the report. In the fastest growing consumer packaged goods categories in China, Brazil and Mexico, eight of the top 50 companies were found in emerging markets, according to the report released Dec 23.

"These local entities - companies like Mexico's Grupo Bimbo - are venturing outside their home markets and skillfully leveraging their emerging market know-how, favorable cost positions and proximity to a rapidly expanding customer base," the report said.

As a result, their sales growth in emerging markets far exceeds that of US-based consumer packaged goods companies, according to the report.