The Next Emerging Markets After BRIC

As indicated in the recent Business Perspectives on Emerging Markets 2012 to 2017 Report conducted by the Global Intelligence Alliance or GIA, the countries China, India, Russia and Brazil which make up the famous acronym BRIC, will keep their leading spots in the list of the world’s developing markets for 2012 to 2017. In the top 30 ranking of emerging markets in which international companies will have plans of targeting from the year 2012 to 2017, most emerging markets, aside those of the BRIC, are found in Latin America or Asia with Argentina, Turkey, Mexico, Vietnam, South Africa and Indonesia getting the highest spots among secondary developing markets.

According to IMF’s projections of economic growth for the years 2012 to 2017, Russia and Brazil will experience a 3.9% and a 3.7% increase respectively in comparison to China’s 8.5% and India’s 7.4%. These projections show that Russia and Brazil are attracting investments worldwide for reasons aside their rates of growth like their domination within their own regions, their potentially enormous domestic markets and their natural resources.

Right after the BRIC countries, Indonesia gets the next highest spot, fifth place, as an upcoming developing market having more than 25% of companies. South Africa bags the sixth position, Vietnam the seventh, Mexico the eight, Turkey the ninth, and finally Argentina the tenth.

Vietnam, among the secondary and promising emerging markets, is favored among retail and consumer, resources and energy industry players as well as logistic while healthcare and pharmaceutical companies have a preference for Mexico as the developing market to direct attention on for the coming years.

Industrial, chemical and manufacturing as well as players of the commercial services industry have set a clear target on the Indonesia as the fifth and South Africa as the sixth emerging markets until 2017. Players of the automotive industry on the other hand pick South Africa as the most significant Emerging Market right after BRIC.

GIA’s Business Perspectives on Emerging Markets 2012 to 2017 Report states that the reasons of international companies in investing in emerging markets may be complex. However, the reasons usually revolve around the possibility of establishing international market share and long-term revenues more quickly than in recognizing markets. The reasons have significantly come to be less about the lower cost of production, although for some, it still is a driver.

Practically all companies that GIA surveyed, about 91% of them, say that they could’ve done a lot better regarding their emerging market strategies. The foremost regrets include not getting better intelligence about the market, not entering earlier and not further adapting to local settings.

According to Pete Read, the head of GIA’s Strategic Analysis and Advisory, various emerging markets interest companies for various reasons. The rapidly growing giants like Brazil and China are naturally at the top of a lot of companies’ target lists.

However, further below the rankings, we will find the little Singapore in the 15th position, preferred because of its reputation as South Asia’s hub for expansion, along with a giant country like the Nigeria that ranked 16th, where spending power is far lower and investing is way risky. But, its population of 170 million is near that of Brazil’s.

The economic growth of Nigeria has significantly been steady and strong lobbying between five and ten per cent for many years now. The term “emerging markets” serves like a catch-all which masks a lot of differences among countries as much diverse as Mexico, Turkey and South Korea, reason why intelligence of local condition tends to be always important.

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