Africa and The New Global Contenders Presentation Overview •CMO Council Introduction•The Global Corporate Realignment•New Emerging Market Multinationals•New Contenders and Disruptors•Challenger Brands in South Africa•Why Africa is Attracting Attention•Contrasting South Africa to South Korea MY PERSONAL BRAND JOURNEY My South African Connections South Africa. Never be Surprised! Introducing the CMO Council Brand-Centric Thought Leadership BrandExperience Geo BrandingEthicalBrandingSocialBrandBrandInspirationBrandAffinityBrandEquityBrandGlobalizationBrandPerformanceMeasurementBrandLocalizationBrandLogistics The Global Corporate Realignment Over40% of the Fortune Global 500 are nowheadquartedin emerging markets, up fromfrom 17% in 2000 Why Did These Companies Make The Answers… Canned foodbusiness bought byits family owned,Philippines-basedregional partner for$1.68 billion The New Elite: Emerging Market More than4,000companies in emerging marketsgenerate over$1Bin annual revenue. •Emerging-market companies >$1B revenue•Combined revenue New Category Contenders and Brands You Hardly Know Will Really Strategies for Global Growth* * The New Emerging MarketMultinationals: Four Strategiesfor Disrupting Markets andBuilding Brands byAmitava Western Market Entry ACQUIREWHAT CONSUMERSDESIRE Why Are Emerging Market Companies What Challenges Do They Face? •Localizationrequirements•Public prejudice•Tariffs and restrictions•Skills gaps•Brand distinction•Quality Perceptions What Characterizes the New Requirements to Succeed •Clear value proposition•Customer experience•Customer-centricity•Brand trust an affinity•Organizational culture•Operational excellence•Lean and green commitment A Sample of “Gazelles” in South Africa is attractingattentionWHYAFRICA Why Africa is attracting attention Why Africa is attracting attention WORLD’S FASTESTGROWINGPOPULATION: Africa now has1.46 billionpeopleand will reach2.5billion by 2050. WORLD’S YOUNGESTPOPULATION:50%<20 years of age (Those aged16-34yearsaccount for53%of income) Why Africa is attracting attention 45% of Africans live in cities Forecastedto exceed50%by 2035,60% –Africa is more urbanized than bothChina and India Why Africa is attracting attention “Afterseveral challenging years,South Africa’s grocery market -McKinsey& Company •Inflation & Frugality:46% ofconsumers reported three or morefrugal behaviors, the highest globally. actively hunting for specials and, onaverage, visit four different stores for •Key Players:Shoprite Holdings Ltd.,Pick n Pay Retailers Pty Ltd., SparGroup Ltd., Massmart (Walmart), and Woolworths Holdings Ltd. dominate. Why Africa is attracting attention MOBILE AND DIGITALMEDIAARE BIG (50% of Africans rely onfriends and family for Why Africa is attracting attention MOBILE DIGITAL MEDIA •1.2 billionmobile phone •570 million Internetusers(15% of population) •320 million social media •51%Smartphonepenetration Why Africa is attracting attention TV, RADIO AND PRINT STILLRULE TRADITIONAL MEDIA80% of Africans rely on TVfor grocery information Why Africa is attracting attention URBAN AFRICANS HAVE MODERN, Consumers equate popular brands with quality andwill pay a premium for them KantarBrandz Why Africa is attracting attention AFRICANS ARE MORE LIKELY TOCHOOSE BRANDS THAT MATCH Ipsos Brand Loyalty and Quality Perception Sources: McKinsey Global Institute–Lions on the Move II (2016), NielsenAfrica Consumer Surveys (2017–2019),KantarBrandZSouth Africa (2019– ContrastingSOUTH KOREASOUTH AFRICAto Contrasting South Africa to South Korea* South Africa** Indicator 60.4 M$390 Billion40th PopulationGDPGlobal GDP Ranking *Asia’s fourth largest economy Contrasting South Africa to WHAT DIFFERENTIATES SOUTH KOREA? •Long-term master planning•Shared identity and culture•World-class education system•Math, science, engineering focus•Manufacturing-driven economy•Export-oriented mindset•Public-private sector synergies•Family-controlled conglomerates Contrasting South Africa to South WHAT DISTINGUISHES SOUTH AFRICA? •Diversified economy •Complex society •Natural resources •Regional leadership•English language skills Contrasting South Africa to Different growth paths: South Korea built a manufacturingexport powerhouse (~$680B exports annually), while South Africadeveloped Africa’s most diversified economy with strengths in finance, Innovation in different forms: Korea is home to globaltechnology giants like Samsung and Hyundai and invests ~5% ofGDP in R&D, while South Africa is known for entrepreneurial ingenuity Education and talent: Over 70% of young Koreans completetertiary education, reflecting a strong STEM focus; South Africacombines respected universities and a young, multilingual workforceof ~25 million people. Contrasting South Africa to Regional leadership: South Korea is a global exportleader, while South Africa serves as a gateway to Africanmarkets, with the Johannesburg Stock Exc