About Emerging Giants in Asia Pacific
A digital revolution is driving growth across Asia Pacific, transforming the way we live, work and do business. It is little surprise that this region is blazing the digital trail for the rest of the world:
- Demographically — Asia Pacific has a growing population, a growing workforce and a growing consumer class
- Digitally — It is home to a fast-growing population of digital natives
- Dynamically — A combination of better access to the internet, growing prosperity and improved education has created a new class of digital entrepreneurs who are uniquely positioned to identify and fill gaps in the regional market.
Asia Pacific has long been the engine of global prosperity driven by its network of industrial supply chains, but two shifts are now changing its growth-profile dramatically. First, Asian economies are becoming markets in their own right as their incomes rise. The second is that the ability to deliver products digitally has shifted the principal driver of regional growth from manufacturing to services.
The KPMG-HSBC Emerging Giants in Asia Pacific joint report takes an in-depth look at new economy businesses across the region that we believe will make a lasting impact on the global business landscape over the next decade. By analyzing economic and investment indicators in twelve key Asia Pacific markets and interviews with leading start-up founders and executives, we identify exemplary business models for future growth; as well as the conditions that will enable these markets to continue to thrive in today's constantly changing business environment.
Fast-growing technology start-ups are the new wave of SMEs contributing towards economic growth and more. By 2030, today’s emerging growth companies will transform how we think, work and live. A key factor in the region’s continued success is strong GDP growth, particularly in its emerging economies. Already taking in over one-quarter of the world’s total private investment dollars, Asia Pacific is catching up with North America as the world’s number one producer of the billion-dollar unicorns. It is little surprise that this region is blazing the digital trail for the rest of the world, demographically, digitally and dynamically.
KPMG Asia Pacific and KPMG China
Asia Pacific new economy businesses: Six key trends
Tap on the cards to read more...
Region-wide growth of
While China remains the leading ecosystem in Asia Pacific for new economy start-ups, India is catching up as a source of digital innovation, and Southeast Asia is establishing itself as a key market.
B2C now; B2B soon
B2C companies, such as e-commerce and payments, are attracting the majority of investment in emerging markets, but more attention is shifting to B2B in areas such as enterprise productivity, education, healthcare and clean-tech.
A rising middle class and digital-savvy Gen Z consumers are driving digital economies across the region; with aging populations spurring innovation in markets like Japan.
Localized business models
The region’s distinctive societies, economies and regulatory environments are all contributing to the rise of “hyperlocal” business models in Asia Pacific.
Robotics and automation are transforming factories, allowing companies in Asia Pacific to improve efficiency, traceability and transparency across their supply chains.
ESG on the rise
Increasing adoption of carbon emissions tracking, alternative and renewable energy and green finance solutions will create new opportunities for start-ups.
Asia Pacific’s Emerging Giants are bold, ambitious and cutting-edge in the new platform and software applications they are offering. They are courageous about who they choose to partner with, which markets they are targeting, how they shape their business models, transforming company culture and mission statements. Perhaps most importantly, they are transforming and pioneering the technology landscape over the coming years, in addition to thinking about what is useful to their customers now.
Head of Technology, Media and Telecommunications
KPMG Asia Pacific
Despite all the recent factors that have impacted the global economy, Asia Pacific remains a growth-oriented region. Here are some key takeaways from our study of these new economy businesses.
- Seizing opportunities: The scale of the digital transformation now underway — and the availability of funding supporting that transformation — is expected to continue to support the growth of technology start-up ecosystems.
- Characteristics of Emerging Giants: While there is no specific formula to be an “Emerging Giant”, the companies we identified were standout players in a wide variety of disciplines, including one or more of the following — superior technology and/or technical knowledge, hyper localization, mastery of logistics, successful adaption of business models and a culture that attracts and retains talent.
- Partnerships and working with regulators: Collaboration is a win-win, with start-ups gaining access to market exposure and customers while corporates obtain innovative technology solutions that can help improve their business operations or access new markets.
- Tax and ESG considerations: As today’s Emerging Giants aspire to become tomorrow’s unicorns, formulating effective ESG and tax strategies will be a cornerstone for future growth.
- Support to scale up: Governments continue to be supportive of new economy expansion, with a wide range of measures and schemes to attract founders, investors, and talent.
- Daring to think big: It always starts with a seed of an idea, followed by thinking big, being disruptive and executing with full passion.
Leading 100 Emerging Giants in Asia Pacific