Posts Tagged ‘emerging markets’

Today, businesses all over the world allocate resources to markets in the hopes of achieving growth. The current economic climate has been definitely producing challenges all over the world, especially in North America and Europe. However, there are other emerging markets in the Middle East and Asia.

Though it may look like things are slowing down, there is still a variety of countries that are excellent market choices for exporting US products. We’ve examined these markets by looking at the population and economic statistics while considering the dynamics of the global food and consumer industries. These dynamics include things like eating and drinking habits, modern retail trade and development, and cost of entry. Here are our top ten, not in any order:

1 – Vietnam

2 – Egypt

3 – Israel

4 – Peru

5 – Malaysia

6 – Saudi Arabia

7 – Colombia

8 – India

9 – China

10 - Brazil

Vietnam
Over the past couple of years, Vietnam has experienced consistent growth rates (of about 5-7%) and it helps that the country receives significant investment from multinationals. The unemployment rate is low; however, the income of the population shows us that it is still an emerging market. However, brands from the United States are quite well received. With a low cost of entry and a growing market, Vietnam has quite a bit of potential.

Egypt
With more than 80 million people living in Egypt, it is an obvious choice for US exports. In fact, it is the largest country in the Arab world. Although it is a historically poor country, it has been growing stably for the last few years and the population’s hunger for international brands has come with that growth.

Israel
Though the smallest country in this list, it has the highest income per capita. Most of the population is familiar with many US brands and has the money to buy them. There are many distribution options here.

Peru
Peru has a young population and is blessed with abundant natural resources making it a logical location for US exported products. Because of the country’s growth, higher demand for more products has quickly ensued and Peru has recently signed new trade deals with both Canada and the US.

Malaysia
Malaysia has experienced low inflation and unemployment levels over the last decades and is one of the highest per capita incomes in all of South Asia. Growth is stimulated by its diversified population and economy which means it is a great candidate for US exported products.

Saudi Arabia
As you probably already know, Saudi Arabia has more than 20% of the world’s oil reserves, but that doesn’t mean it isn’t a good country for exporting from the US. It is in fact one of the top markets for US products, especially consumer and food goods.

Colombia
Though much stigma is attached to Colombia, it is a promising market. Increased stability and a major port on the Caribbean Sea make this country a contender for US exporting.

India
One of the largest populations in the world, India is an emerging market for US exports. The cost of entry is relatively low and the market is growing. Now is the time to get into India.

China
China’s economy has a growth rate of just over 8% and though we import plenty of products from the nation, it is still a contender for US exported products. Though the food industry has experienced some setbacks in exporting to China, other sectors like personal care and household products have flourished.

Brazil
Right now, Brazil’s economy is booming and so is its population. They claim to have found massive oil reserves and it looks like Brazil may be a contender for greatness pretty soon. Exporting to Brazil will mean taking a look at its fragmented market and being able to cover its needs.

Small businesses that are looking for an exporting opportunity should consider the many emerging markets that are appearing all over the world. One of the biggest opportunities out there is the technology marketing. Considered one of the most popular emerging markets, technology marketing is helping bring the world a little closer together in places that one would not originally have considered.

Exporting can be difficult in the first place due to the many cultural differences and dynamics that must be taken into consideration and explored. Being ignorant of the culture you are exporting to is not a good idea. One small mistake can cost your company billions. When dealing with exporting to emerging markets, this ignorance can cause businesses to look away from the viable and profitable markets, making this miss out on sustainable business opportunities that could’ve launched them internationally.

While exporting to developing nations has, in the past, been filled with prohibitive and dubious ventures, there are many emerging markets there that offer the small business a wealth of opportunity to enjoy. These are the areas where innovative ideas, methods and technology are the most welcome. The reason for this is the lack of an established technological infrastructure. Small businesses that enter these developing economies with technology marketing fare well. They do not have to upgrade an archaic, existing infrastructure in order to do business. They are able to go in and establish the standard that is used from the present on.

Africa and South America are two areas in the world where technology marketing has provided small businesses with a wealth of opportunities. In Africa, cellular phones are the preferred mode of communication in addition to the method in which citizens of the many African nations transfer money and pay their bills. South America has welcomed and embraced Internet cafes, something that is still not accepted as the norm in the United States. These are the types of emerging markets that are starting to appear in other areas of the world and offer the expanding small business numerous opportunities for success.

Keep in mind that the lack of infrastructure can also cause issues that make it important for a small business to plan carefully. If the company is launching a service or product where some exiting technology needs to occur, the company must ensure it exists and they have access to it. Researching the technology already in place and building from it needs to be done or else the company will not be able to participate.

Additionally, careful planning must be made when it comes to social aspects, such as the cost of the service in the first place. Citizens of developing countries have little to no disposable income. What the small business provides them must be practical and affordable. If there is no need for what the small business is offering then there is no way the company will be able to convince the citizen to invest in the technology that is being put into place. Ensuring there is a need and an ability to pay for it should be one of the first research goals for any exporting business.