When striving to become an international brand, it’s often easiest to operate in developed markets. However, you might have a higher growth potential in markets that are in the early stages of development. Emerging markets offer yearly growth rates of up to 5%. Compare this to a 2-2.5% growth rate in developed countries, and you can see the potential.
Top 5 Emerging Markets
The growth factor in an emerging market could be huge, but what are the risks? Before entering any new market, do your research on the demographics of the region and the likely demand for your product or service. In emerging markets, several other factors are just as important. These include the political and economic status of the region, the ease of doing business there, the cost and time involved in setting up a business, access to credit and more.
Here are the top 5 emerging markets around the globe.
China has a growing population of 1.4 billion people. Plus, the average Chinese consumer is becoming wealthier, with a strong interest in premium products and services, especially those related to entertainment and relaxation. The Chinese government has implemented several reforms to make it easier for foreign companies to enter the Chinese market. These reforms have moved China up to the 46th position in the World Bank’s Ease of Doing Business report. This places China as the top emerging market to do business in.
In 2015, it took about 53 days to start a business in Indonesia. By 2017, this was reduced to approximately 23 days. Products and services related to infrastructure and medical facilities are expected to show an increase in demand. Indonesia is blessed with an abundance of raw materials, making it an ideal country for manufacturing companies to source low-cost materials. Indonesia has a relatively stable political climate, low labor costs and a burgeoning young population.
Vietnam is a lucrative emerging market for many international companies like Nintendo, Sharp, Nestlé and Lenovo. Vietnam is one of the most politically and socially stable countries in Southeast Asia. The country has a population of 95 million, including a fast-growing middle class with plenty of purchasing power. Vietnam has made several regulatory and economic reforms to be included in global trade organizations like WTO and ASEAN. The Vietnamese business environment is friendly for foreign companies; it now takes about 17 days to start operations there.
India has a population of 1.3 billion, making it second in world population rankings. According to a report from the McKinsey Global Institute, by 2025 no less than 69 Indian cities will have a population of 1 million residents. This gives marketers access to a massive pool of middle-class individuals. The Indian government has also been focusing on making it easier to do business in the country. These reforms, in conjunction with India’s young workforce and a robust startup ecosystem, make India an important country to consider.
It takes just one day to open a business in Georgia. This Eastern European country of 3.7 million people has instituted such good economic and governance reforms that the World Bank has dubbed it a “Star Reformer.” Georgia has excellent trade agreements and relationships with China and the EU. It is highly supportive of companies in the energy, agribusiness and tourism sectors. Georgia’s government has a project to make every village and town a 4-star location for both residents and tourists. This policy opens up new avenues for many international companies, especially those with products or services related to construction, transportation, energy and tourism.
Localizing for Your Preferred Emerging Markets
When you localize content for your brand, you need to build a connection to each target region by gaining an understanding of its local language, culture and product preferences. Translating and localizing your branding, website, social media accounts, apps and packaging materials are all essential steps in breaking down barriers to communication.