Emerging Markets - The Game Changers

Emerging markets …. developing nations …. whenever these words flash into our minds we get reminded of bloody histories, inefficient governments, military coups, humungous debts among many other not so encouraging facts, the Asian tigers and dragons were just figments of imagination and a fool’s hope, but, the last decade changed everything. The global power houses changed, balances shifted, these emerging markets now became integral and important players in the world economy.

The “developed” economies are now looking at weaker shadows of themselves, unemployment levels on a high, consumer confidence on the decline, and no beacon of hope for the near future. Whereas, these emerging economies have now come back in full glory from the hit they took during the 2008 crisis. Some of these economies like China, India and Brazil are riding waves of success, due to strongly export driven economies, huge capital inflows and strong financial institutions to back them up.

For understanding what makes these markets, what they are, one must understand the strengths these markets possess. High incomes, higher saving rates, well-educated populace, competitive wages, strong and stable political and economic systems, abundant resources and the ever expanding middle class are but some of their over whelming strengths.

There are certain trends seen in these emerging markets, like:

·     Population growth

·     Market vitality

·     Middle class

·     Purchasing power

·     Consumer connectivity

·     Product innovation

·     Women consumers

·     Young populations

Taking everything into consideration what one can state is that, these markets are growing and will continue to do so, in fact there are views which support the fact that some of these markets are no more “emerging”, but that they have already emerged. Ultimately whatever be the status that would be bestowed upon them, the only fact that remains is, these nations are changing the name of the game, they are the quintessential game changers, the underdogs, and they have just snatched the game away from the “advanced” nations from under their noses and, there is nothing that these nations are able to do about it. These emerging markets are the change and the world is yet to witness their complete potential. The world better watch out.

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Written by Sushama Vasudevan  (sushama.pgdm14c@greatlakes.edu.in)