Market entry - The right road for your business 

Dr Marc van Grondelle

Head of Joint Ventures

KPMG in the UK

JVs will not go away. They will grow in number. They will always be difficult. Many CEOs dislike joint ventures and enter them only reluctantly. But JVs are here to stay. Indeed, over the next few years we expect to see them accounting for an increasingly large share of corporate top and bottom lines. So CEOs need to equip themselves and their teams to deal competently and confidently with the challenges JVs present. Those who embrace the challenge and invest the time and effort to tailor their business model, capabilities and approach will extract more value from their ventures, both in emerging markets and elsewhere. And this will make them stand out from the competition.

Milan Sallaba

Partner, Transaction Services

KPMG in the UK

No longer are the Emerging Markets seen as the domain of cheaper production; the moves into these markets are now predominantly fuelled by higher growth rates unavailable in the domestic Western markets. However, the considerations when entering markets are often complex: understanding local markets, garnering local knowledge, tracking competitors and identifying input costs are but some of the issues facing the CFO.

So where are companies looking to go? The BRIC countries (Brazil, Russia, India and China) are still very much regarded as the premier tier for Western organisations; having a good quarter of the global population and a rising middle-class means they retain their attractiveness, although there are still lessons to be learnt here.

Aman Wang

Head of UK China Practice

KPMG in the UK

The Hong Kong capital market has an ability to attract international companies that do business or wish to do business in China. More than just its proximity to the Chinese mainland, what makes Hong Kong special is its ability to efficiently accomplish and assist companies' short and long term goals. For example, Hong Kong is a free market. It has no capital controls and has a favourable tax environment. It is a well-established market with strong fund-raising capabilities, reasonable valuations, strict listing & disclosure standards, and an advanced technology & infrastructure platform. Furthermore, Hong Kong also helps companies strengthen their brand and raise their visibility by bringing companies closer to Asia.

Thus, by listing in Hong Kong, international companies can tap into the huge capital pool and diversified investor base in Asia, and particularly in China. Hong Kong already attracts many international companies looking to do business in China, yet, given the above advantages, we expect Hong Kong will continue to be a capital markets centerpiece for global companies looking to do business or IPO well into the future.

Stuart Crisp

Partner

KPMG in the UK

The 'Great Africa Business Migration' has spurred serious discussions around the realities of doing business on the continent. Transacting in Africa poses complexities that companies need to factor in. Complexities stem from the heterogeneous nature of Africa - with 55 countries of different regulatory, tax and competitive environments.

In the sixth episode of KPMG’s Africa Conversation Series, experts discussed the most pertinent trends and challenges related to making investments in Africa today.

Eduardo Navarro

Head of Brazil High Growth Markets

KPMG in the UK

Given Brazil´s strong growth fundamentals supported by financial stability and infrastructure investment, it is no surprise that companies are considering expanding their business in the Brazilian market. Over the past three years, 45 million Brazilians moved into the middle class. And with their ascent into the new social stratum came a world of consumer opportunity.

But decisions made now can have enduring consequences. Lack of market understanding or insufficient forward planning can blight a venture in years to come. Commercial and operational issues, taxation, intellectual property, employee remuneration and regulation all bring challenges in new markets and jurisdictions. Meanwhile pricing, innovation, supply chains and routes to market in one industry or sector may turn out to be quite different in another.