GMM Lecture 7

Management > Global Marketing Management > Lectures > Emerging Markets

Emerging Markets

Characteristics of Big Emerging Markets (BEMs):

• Physically large (although there are often vast areas of land which are unpopulated, as they are uninhabitable)
• Large market (though the spending power of the market may be variable. For example, city dwellers on the coast of China have far greater spending power than those in rural areas)
• Strong economic growth
• Undergoing economic reform

Challenges in emerging markets:

• Inefficient technologies (Flying Geese strategy has been helpful, as demonstrated in Asian countries, such as China and Korea)
• Developing infrastructure
• Unstable economic/political structure (For example, the CCP in China still have a strong hold and foreign companies to India have to pay 40% tax)
• Rise and rise of the middle class

Emerging Markets continued