Four scenarios on how markets and economies across the world will evolve were presented by Mr Adil Zainulbhai, MD-India, McKinsey and Co, on Day One of AdAsia 2011. The findings, based on an ongoing survey among 2,500 senior executives and economists, show a high level of volatility, with fluctuations witnessed between March and September.

“Even the folks setting the economic policy are having a tough time predicting what will happen. Volatility is high, and my expectation is that we will remain in the uncertainty zone for the next few years,” said Mr Zainulbhai. “It is worrying that so many senior executives think the developed markets will not do well now, compared to eight months ago.”

Among the factors he cited would drive the markets in future are the connected “global grid”, “pricing the planet” (crunch on resources), and an extended “role of the State in the market”.

Aspiring, Digital Asia

Asian consumers are seeking the best of brands even if they are unaffordable, according to McKinsey's consumer and shopper insights. While 72 per cent of Indian respondents replied in the affirmative, the corresponding number in China was 50 per cent, and in the US was 26 per cent.

“The finding shows that clearly, brands are important in Asia,” explained Mr Laxman Narasimhan, Director, New Delhi, McKinsey and Co.

According to the same study, Internet users in China number 485 million, and are expected to touch 750 million by 2015. In India, there would be 350 million Internet users in 2015, up from 100 million in March 2011, he said.

Against a world figure of 38 per cent who research online and purchase offline, and 20 per cent who research online and purchase online, the Indian respondent figures stood at 34 per cent and 3 per cent respectively. This number is fast changing with the off take of e-commerce, Mr Narasimhan said.

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