Mega-City Markets

One issue anticipated in the FMCG world of global brands and local varieties is a shift over the next decade in the role of mega-cities as discrete markets. Today, most multinational companies still consider their markets by national or regional boundaries – e.g. Turkey, Canada or EMEA. However with ever increasing urbanisation and more emerging mega-cities, some are starting to see that the global shift in population and economic wealth is fast creating a different focus. Given that there is more in common between many residents of Shanghai and those in New York, Mumbai and Tokyo that between residents of Shanghai and the rural Chinese population or the residents of New York and people in Montana, several companies are looking to follow other’s initial forays into creating products that are targeted solely at urban populations. While Metro, the largest and fastest growing free newspaper, is now available in 56 cities in 18 countries and has therefore become a lead signpost in this area, there are a number of other ‘city only’ products and services already on the radar – streetcar and Coca Cola’s Full Throttle energy drink are two other well recognised ones.

 

As the numbers and commonalities in terms of lifestyle and attitude between a significant proportion of inhabitants in different mega-cities increasingly align over the next ten years, more companies will focus on the global urban consumer as a key market segment. In India, Hindustan Unilever and P&G have both declared an increasing focus on the urban market. Going forward, one can expect to see most FMCG companies start to shift from the traditional country based P&L focus to one where mega-cities are re-categorised as distinct markets, with different products and services targeted at the increasing portfolio of global commonalities.

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