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Emerging Markets – If your business is in one, you need to reach out to the developed markets. If your business is NOT selling in one you need to start ASAP!

I receive this question a lot: “I am a Small or Mid-Size Enterprise (SME). I have a minimal and strict budget to begin to enter cross-border market expansion. Where should I focus my marketing?”

Another question is: “We are a Large Enterprise (LE). We have some knowledge and experience in cross-border sales, but the world markets are changing. Where should we be focusing our marketing energies? What Emerging Markets, or Emerged Markets or Seeding Markets offer us the potential for solid growth for a 5 to 10 year period?”

First, whether you are an SME or an LE, your market strategy, target markets and product-market mix must be developed on an individual business bases, and on a specific market and product bases. There are a number of previously issued blog posts that address these points.

Although I can’t address your specific needs in this post, what I can provide is some markets that should be on your target market review list. As you review each, some may fit and some may not. In performing these target market reviews, I suggest you status tag each target market using the six unique World Market Status Tags described in the many posted blogs on marketing.


Market Definitions

I am going to address developing markets and emerging markets for you to consider. These suggestions in no way should distract you from the developed country markets. All the developed economies, even in a recession, have quality buyers with disposable income. Therefore, even during bad local economic conditions, do not avoid working the developed economies.

In addition to the developed market economies (“Established Markets”), I place the balance of the economies into three categories. The first is the “Emerged Markets” that includes the BRIC, which covers the countries of Brazil, Russia, India and China, plus a few others.

My second category is the “Emerging Markets,” also referred to as The New Frontier, which cover the countries of South Korea, Indonesia, the Philippines, Turkey, the Czech Republic, Poland, plus a few others. My last classification category is the “Seedling Markets.” These are countries or regions where there is a limited number of buyers with large amounts of discretionary income, and the balance of the consumer base has little or no discretionary income. These markets usually have a very small number of middle class consumers.

Low discretionary income does not mean you should ignore the market. It depends upon your product mix, the needs of the population, and whether you can deliver a competitively priced product. In each of these markets push the product that meets their needs and makes you a good profit. If this criteria is established as a result of your target market review and analysis, then go for it. For a further discussion of Seeding Markets, review the Blog which addresses the topic of Sales to Low Population and Low Sales Volume Countries (LPLSVs).


Established markets

Market Analysis

Emerged Markets- The laws of economic gravity are catching up with the BRIC. The law states the bigger the economy becomes the harder it is to grow fast. That does not mean you should avoid the Emerged Market. It just means that the weight of these economies will bring them into the growth rate range of about 5% GDP per year. That rate is still a very good rate of growth and depending upon the results of your target market research and analysis, it could still identify one or more of these countries as a high return, high ROI, for specific products offered by your business.

Recent research by Morgan Stanley, an investment advisory house, suggest the economic gravity law is now in the progress of bring the BRIC markets down to the 4% to 6% GDP range. They forecast China will drop 3.1%, Brazil will drop 0.8% and India will drop 0.3%. These are not numbers that you should worry about. If your target market research and analysis says a BRIC county is an Amazing, Excellent, Great or even Good market for one or more of your products, do not let these forecasted drops in GDP effect your growth plans.

Emerging Markets – These are the next wave of high GDP growth countries where a new and growing middle class, and also an expanding upper class, will gain more and more discretionary income. Once they have this new found cash flow, they want to buy things that up ticks their standard of living and their status in life. You should definitely place the Emerging Market countries on your target market list. That does not mean they will be right for your product mix. However, you do need to do the research and analysis to establish the status of each market as it relates to each of your products.

New countries will be added to this Emerging Market list, but the current leaders are: South Korea, Indonesia, the Philippines, Turkey, the Czech Republic, Poland. Research each, and see if pursuit of one or more of these countries is right for you at this time.

Seedling Markets – These can be great markets for selective products. If any of your product mix fits the needs of a Seeding Market, and you can find a means to delivery a quality product that beats the price of local and international suppliers of that product, then go for it. Review the Blog  - Sales to Low Population and Low Sales Volume Countries (LPLSVs) and all the other Blogs that address marketing. If your market research and analysis shows it is right for your business and products, then try it!

We welcome the opportunity to help you grow. To learn more about Established Markets, Emerged Markets, Emerging Markets, and Seedling Markets continue to monitor this Blog and visit the World Market websites.

References:
https://www.cia.gov/library/publications/the-world-factbook/index.html
http://www.internetworldstats.com/
http://www.cnbc.com/id/47566735