Top 100 unicorns

Top 100 unicorns’

market cap

Consumers in emerging markets are fueling the growth of digital products and services

The Digital Revolution Is an Emerging-Market Revolution

Global challengers outperform both global peers and market indexes on long-term TSR and revenue growth in multiple industries

Compound annual growth in revenue, 2011–2016

Industrial goods Consumer goods Technology, media, and telecommunications

Health care

MSCI Emerging Markets

Global Challengers 100

Global peers

S&P 500

Total shareholder return, 2000–2017 (indexed to 100)

600

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

500

400

300

200

100

0

Global peersGlobal Challengers 100 MSCI Emerging MarketsS&P 500

NOTES:

Technology and telecom market share data includes the top 250 publicly traded companies in the selected sectors. Digital companies are either “digital natives” (those created as digital companies) or “digital adopters” (those that use digital technologies as an integral part of their business model). Revenue growth rates are based on available data from the 100 BCG Global Challengers, 846 MSCI Emerging Market index companies, 500 S&P 500 index companies, and 230 global peers. Global peers are multinational companies that operate in the same industries as the global challengers. Fixed exchange rates were used to remove currency fluctuation effects. All indexes have been weighted by the market capitalization of their constituent stocks. The global challengers index is basedon data from 92 global challengers that were publicly listed and from 245 global peers.

SOURCES:

BCG analysis; CapIQ; CB Insights; Datastream; eMarketer; Forrester Research, World Online Population Forecast, 2017–2022 (global) and Online Cross-Border Retail Forecast, 2017–2022 (global); iResearch; OECD.

Data in this infographic from 2018 BCG Global Challengers: Digital Leapfrogs.

12%

9%

4% 4%

25%

18%

8%

3%

11%

5%4%

1%

10%

6%

1%

–3%

33%Emerging markets

67%Developed markets

41%Emerging markets

59%Developed markets

33% of the top 100 unicorns are from emerging markets, accounting for 41% of these 100 companies’ total market cap

BCG’s global challengers are going digital at an accelerating rate

Global Challengers Are Setting the Pace

Traditional companies

Digital companies

2012

2017

17%

83%

59%41%

To win at digital, these companies use a combination of:

US

South Korea

UK

France

Germany

Japan

India 45%Indonesia 66%

Mexico 29%

Brazil 21%

Argentina 19%

Russia 18%

China 17%

Chinese consumers make more than 50 times more mobile transactions than US consumers

Digitally influenced spending in India will increase to more than $500 billion by 2025

Brazilians use the internet at some stage in 56% of all purchases

Emerging markets Developed markets Compound annual growth in the numberof online shoppers, 2009–2016 3

1766

Compound annual growth in the number of internet users, 2009–2016 (%)

Industry 4.0 and Service 4.0

Digital customer journeys and engagement

Business model innovation

Digitally enabled functions

Market share is shifting among segments of the technology and telecom industries

Emerging Markets Are Gaining Ground in Digital

2007

2016

Internet software and services

Electonic equipmentand components

Semiconductors and related equipment

Telecom equipment

32%

21%

34%

44%

Technology hardwareand equipment 37%

7%

5%

23%

32%

27%

LEAPFROGGINGCOMPETITORS

Digital Global Challengers Are Many of BCG’s 2018 global challengers—100 rapidly globalizing companies from emerging markets—are getting ahead of the competition by using digital technologies

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