Enterprises have to change as the affluent young in emerging markets increasingly dominate the market. Businesses have to adapt to this trend, says Ashish Jhaver, Vice-President (Internal Audit), Royal Bank of Scotland Business Services Private Limited.

Addressing a symposium organised by the Loyola Institute of Business Administration, on ‘Changing Lanes on the Business Expressway’, Jhaver said the way of doing business is undergoing a radical change with the focus shifting to emerging markets like India. “Cities from India, China and Latin America are emerging as favoured destinations for investments for developed markets, shifting the balance of power from the West to East,” Jhaver said.

Additionally with changing consumer preferences, business enterprises are beginning to focus on younger markets that generate demand.

The success of tech-enabled services, which prioritised the comfort of the customer, has brought about the change in the business scenario.

“Technology has enabled exponential growth with the ability to reach out to people at less capital,” Jhaver said. Pradipta Mohapatra, Chairman and co-founder, Coaching Foundation India Limited, said, “While earlier enterprises struggled to get capital from investors for expanding, in the recent times getting funding is not difficult.”

New challenges

Though access to capital and capability to spread business globally has become relatively easier, Mohapatra said the challenge companies face is the understanding on running operations world-wide using minimum resources.

S Chellaiah, Professor, LIBA, said entrepreneurs should utilise opportunities by diversifying businesses and strengthening core competencies.

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