Emerging markets simply refers to the BRICS countries.
The term covers so many more markets that just Brazil, Russia, India, China and South Africa. Further countries are seeing an economic transformation, including the Philippines, Indonesia, Nigeria and Ethiopia (or ‘the PINEs’). Fueled by a growing middle class and strong economic performance, as well as advances in technology, improved healthcare and education, these countries are experiencing their own business boom.
Only big businesses can succeed in emerging markets
It is easy to assume that only large, well-known companies can survive the move into emerging markets. This is not the case. Smaller businesses have the opportunity to become part of a developing economy, to provide consumers with new services on a more personal level and to work with local companies to expand alongside the country’s economic infrastructure.
Internet penetration is too low for online growth.
Internet penetration in developing countries is increasing every day, with the smartphone adoption rate growing nearly twice as fast in emerging markets as it is in more established markets (KPCB). In the Middle East, 95% of Jordanians now own a cell phone, and in a recent study, Jordan ranked second in Internet usage in the Arab world.
Emerging markets are just too risky.
There are always risks to consider when investing in a new market, however developing countries provides exciting, new investment opportunities. For example, in Emerging Trends in Real Estate Asia Pacific 2014, a joint report from the Urban Land Institute (ULI) and PwC, the Philippines’ capital of Manila was ranked in the top five cities in the region for its investment potential.
It’s all hype.
These increasingly buoyant economies are creating great potential for businesses. As underdeveloped countries become more developed economies, businesses have reason to be extremely enthusiastic. Whilst there are challenges that must be taken into account when strategizing a move into an emerging market, vast opportunities are being created – as long as strongly researched decisions are made and realistic strategies are in place.
The important thing is to ensure you do research using the internet and also from stories published concerning development in countries of your choice. You can get more information from online journals also.