Many global opportunities and risks are out there for consumer goods companies in both fully-developed and developing markets. Thus, it is important to be aware of the specific economic situation of each market in which a firm seeks to do business.
According to eMarketer: “As growth in Brazil, Russia, India, and China — known as the BRIC countries — slows, multinational consumer packaged goods (CPG) brands are examining other developing markets where young populations with a growing middle class are hungry for new products and experiences, according to a new eMarketer report, ‘CPG in Developing Markets: Consumers’ Digital Habits in Emerging Economies.’ Demographics, geography, infrastructure, and unstable political situations will create challenges for brands as they enter new territories. But these markets also present great opportunity.”
Click the chart to read more. [Note the strength of the mature U.S. marketplace]
As time progresses society is becoming more dependent on technology especially phones. Through smartphones particularly we can complete a wide range of tasks via our fingertips which has a great deal of interest in our society. So it is not surprising that mobiles are being linked to emerging markets. One is able to research the product, buy the product or look at similar products on their phones which appeals to many young people in that we want that instant gratification.
I think it is a great opportunity to start seeking new places with a young and eager middle class, to introduce new technological products. When introducing a new product anywhere it is important to do your research to make sure your product has any chance of lasting in the market. Marketers take risks though so as long as you have a good sense that a majority of people will like the product I say why not run with releasing it. The world today is moving in a technologically savvy direction, so my suggestion would be to keep introducing products to the young consumers of our middle classes around the world.