In a report by Goldman Sachs, it was predicted that the economies of Brazil, Russia, India and China or BRIC for short, will emerge and overtake the current major economic powers such as that of the G7 nations by 2050. In fact, China has prematurely surpassed previous forecasts by moving past Germany and Japan to be the world’s second largest economy.
It has been touted that in the years to come, manufactured goods and services will be largely supplied by China and India while Brazil and Russia will be the major suppliers of raw materials.
Combined, the rapidly emerging four currently account for more than a quarter of the world’s land area and more than 40% of the world’s population
In the report, it was stated that BRICs’ currencies could appreciate by 300% over the next 50 years, providing a big tailwind for investors in BRIC assets.
As it stands, India is already renowned for their extensive capabilities in the fields of outsourcing and IT. Brazil is developing a space program as part of their plans to one day transport supplies to space stations. In addition to that, Brazil will also be hosting the next soccer world cup which will undoubtedly have a positive impact on their economy. In the last two years we have seen China host major sporting events such as the Beijing Olypics and the recent Asian Games, both of which resulted in an influx of tourist and a boost in government spending to upgrade and develop their infrastructure.
In a marketing and communications perspective, these countries represent significant and promising markets with endless possibilities as well as countless opportunities.
Increasingly, we see US and European companies and enterprises focus more sharply on the Asian economies, trying to carve out a bigger and more significant percentage of the revenue pie.
This means more sophisticated messaging, marketing and communications aimed at Asia and coming from Asia. This also means competition for every dollar is going to get intense. Companies that can recognise today the fundamentals that would drive long term growth and implement programmes that can ensure that will ulitmately consolidate and win.
The ground’s shifting and enterprises need to read the signs. We are living in interesting times indeed. What do you think will change in the next 24 months in your world?