Local Brands and Global Brands: Competition in Emerging Markets

Abstract

This paper examines market dynamics of global and local brands in consumer packaged goods category in China, India, and Turkey. These are large markets with robust growth expectations and varying levels of retail modernization. This research analyzes trends in market shares of local and global brands in three product categories in the fast-moving consumer goods space, carbonated drinks, chocolate confectionery, and detergents (laundry care). It examines responses of local brands to entry of global brands and uses the Dawar and Frost (1999) framework to provide an initial basis for local brands’ responses. Similarities and differences in the three markets are discussed.