High-profile emerging markets

Emerging markets have been growing significantly in recent years, but they are still small in scale and there are many uncertainties.
However, it is true that economic growth due to increases in population and capital is remarkable, and it is becoming increasingly important for emerging countries to understand the trends in each market.
We will now introduce emerging markets to those who are considering expanding overseas in the future.

What are emerging countries?

Emerging countries are countries where rapid population growth is expected and economic growth is expected. Examples include the BRICs, which stands for Brazil, Russia, India, and China, and the VISTA, which stands for Vietnam, Indonesia, South Africa, Turkey, and Argentina. These countries have large growth rates and are very diverse.
As the population increases, consumption expands and becomes more diverse, and an influx of people and goods from both within and outside the country is expected to lead to market development.

Why is expanding into emerging countries attracting attention?

As mentioned above, what is particularly noteworthy is their high growth potential. It is expected that around 2039, the GDP of the BRICs will exceed that of the six countries of the US, Japan, Germany, France, the UK and Italy.

Other advantages include the vastness of the country's land area, abundance of natural resources, and a large labor force. Although there are concerns about the domestic situation, the benefits that can be gained will be greater than these.

Important points to consider when expanding your business into emerging countries

Emerging countries offer benefits such as high growth potential and the potential for increased mobility of people and goods, but at the same time they also pose several business risks.

Understand business risks

Emerging countries are prone to market and economic risks due to overseas influences.
For example, if there is a large inflow or outflow of capital from a large company, it will fluctuate greatly. Since there are few domestic investors and foreign investors hold a lot of capital, it may be difficult for a country to control its economy and funds.

Another risk is domestic instability. The Myanmar government could be taken over by the military, or there could be airstrikes by Pakistan. If such protests occur frequently due to political dissatisfaction, it could have an impact on economic activity.

Thinking about your marketing strategy

Marketing is essential when expanding into emerging countries.

Your customers are people who have lived in different cultures overseas. They have completely different ways of thinking than Japanese people. The things and services they need will also be different. Therefore, you need to create a strategy that can be used overseas. Thorough research is required, such as directly interviewing the opinions of local people.

The appeal of business in emerging countries

Emerging countries, with their high growth potential and rich diversity, are ideal countries for seizing new business opportunities.

Securing profits

The ability to secure profits in emerging markets is a big attraction. At first, the market size is small and there are risks due to domestic conditions, but the profits will expand as the market grows.
Emerging countries can easily attract capital and people from other countries and have little competition, allowing them to make large profits at low cost.

Reduce costs

Emerging countries are characterized by a growing population and abundant natural resources. This allows them to reduce labor and raw material costs. Labor costs in emerging countries are cheaper than in developed countries.Therefore, there will be no problem in securing a labor force due to population growth.Securing excellent local talentis also important.

If you want to start a business with an emerging country, choose "DigiTrad"

This time, we addressed the topic, "How should you expand your business into emerging countries? What are the risks and attractions of the market?"

STANDAGE uses its own trade cloud service to provide "Digitrad", a service that can "completely" handle trade for small and medium-sized enterprises. "Digitrad" allows you to develop overseas sales channels at low cost thanks to the application of IT introduction subsidies. We can also handle small-scale, low-value trade and domestic purchases that cannot be done by large trading companies, so please feel free to contact us.

• Twitter
• Facebook
• Hatebu
• LINE
• Pocket