Germany predicted to beat Silicon Valley in next digital race, according to GVG study

SAN FRANCISCO, Oct. 14, 2019 /PRNewswire/ -- By 2030, Germany could produce at least five digital giants—like Amazon in US retail or Tencent in Chinese media—in massive markets such as: food, retail, automotive, logistics and appliances because of world-class incumbents including: Aldi, BMW, Bosch, Metro, Otto, Schwarz Group, VW and others according to a newly released report Who Will Win Next Digital Race: startups, digital giants like Amazon or incumbents like Walmart, Tata, Lidl? published by GVG Capital, the #1 ranked global private equity firm in digital transformation. The report is based upon the world's largest digital transformation study spanning 5,000 companies across 100 countries.

The stakes could not be higher, with room for only 1 winner—digial giant—in each large market. 'Digital giants' are $100 billion+ winners that dominate their respective markets. $50 trillion in global consumer spending is anticipated to shift online by 2030—unleashing 40 new digital giants from 15 more countries like Germany and India in dozens of trillion-dollar markets from food to health. The first digital race produced 8 digital giants: 4 from Silicon Valley (Apple, Facebook, Google, Netflix), 2 from Seattle (Amazon, Microsoft) and 2 from China (Alibaba, Tencent), which included 7 of the world's 10 most valuable companies.

Incumbents have a window of opportunity because startups and current digital giants face structural challenges, government backlash, populist resentment and investor skepticism. Governments globally—Germany, France, UK, India, Brazil, UAE and others—are erecting tax and regulatory hurdles against foreign digital giants like Amazon and Facebook. No startup founded in the past 15 years has built a digital giant because it has become cost prohibitive to build a brand, technology and infrastructure at scale.

"German companies can outperform Silicon Valley—only if they improve customer experience 10X to disrupt their markets and exponentially accelerate their velocity of digital innovation", according to Mr. Love Goel, Chairman and CEO of US based GVG Capital known for transforming the only four incumbents in history to beat Amazon and build digital market leaders in trillion-dollar markets. Goel added, "Iconic incumbents with concentrated ownership—founder, family or private equity—have a significant advantage because of their speed in decision making and capital allocation."

FULL REPORT: https://bit.ly/35fbjLt

[ Back To TMCnet.com's Homepage ]