Seeking new opportunities and the fast lane for growth for your brand? Then look no further than the fastest-growing global markets.
According to the 2018 PwC CEO Survey, corporate CEOs are confident in the global economy to grow reliably in the year ahead, with the highest-ever jump in CEO optimism related to the global growth outlook in the survey’s history.
Advanced economies around the world are being predicted to grow by 2.2% this year, according to the World Bank. Comparatively, there’s more than double the growth opportunity in emerging and developing economies, with a projected 4.5% growth rate in 2018.
Even if your brand is already doing business or selling in multiple countries around the world, identifying the specific local markets around the world that are outpacing the rest of the world and pinpointing those that are projected to grow significantly in the coming years can provide your company with a clear path to faster growth. On top of that, targeting fast-growing markets can provide your brand with a strong competitive advantage when your competitors are ignoring certain markets or are simply late to the game.
Asia Is a Growth Engine
When looking at global growth opportunities, start with Asia. The region is the fastest growing in the world, with China and India leading the way, according to the Organization for Economic Cooperation and Development’s (OECD) latest Economic Outlook report.
The PwC CEO Survey also points to Asia as the area outside of the United States with the highest level of confidence for growth in the coming year by the CEOs surveyed, with various countries boasting GDP growth in excess of 6.0%.
In comparison, the Euro area is estimated to grow at a 2.4% rate in 2017 and 2.1% in 2018. Although the Euro countries represent growing markets, it’s clearly less than the current and future trends in Asia.
As reference, GDP in the United States is estimated to grow by 2.5% in 2018 before dropping down to 2.1% the following year.
In the Asian region, China’s growth was estimated by the OECD to be approximately 6.8% in 2017. The country is projected to grow by 6.6% in 2018 and 6.4% in 2019 in a steady-growth pattern for the coming years. Underlying the economic growth, industrial production growth and corporate profits have been increasing.
Stabilizing market growth has been an objective of the Chinese government. China’s president Xi Jinping has been striving to keep credit growth under control, perhaps leading to more balanced, steady, and reliable growth than the hypergrowth of years past.
India’s healthy growth rate is being pegged at roughly 6.7% this past year to 7.0% in 2018 and 7.4% in 2019. The OECD report points to reforms that are helping to boost investment, productivity, and growth in the highly populated country.
Martin Mackay, President Asia Pacific of CA Technologies, stated this month at Davos that the company is eyeing a significant growth opportunity in India. Mackay said, “We look at India as a massive growth market. Its growth potential is accelerating.” The $4 billion company is expanding its presence in Asia with a special focus on India.
Vietnam’s economy is being forecast to grow by 6.5% in 2018, according to the Asian Development Bank. The country is experiencing a buildup of foreign capital, due to the government’s concerted effort to make the Vietnamese market attractive to foreign companies. One example of recent investment in the country was by the telecom giant Samsung, with an investment of $2.5 billion. This brings Samsung’s total investments in the country to $6.5 billion.
According to the World Bank, economic growth in Cambodia is strong, and the trend is expected to continue. GDP growth was at 6.8% in 2017 and is projected to be at 6.9% in 2018, as its tourism sector looks be recovering.
This growth in Cambodia carries risk, however. Governmental corruption is endemic, and the country ranks 150th out of 168 on Transparency International’s Corruption Perceptions Index.
Although its population is small, the economic engine of the Kingdom of Bhutan is strong. The World Bank is projecting GDP growth of 7.7% for the country in 2018, and a staggering 10.5% in 2019. One of the keys underlying these projections is Bhutan’s potential for hydropower generation. (For all of its robust GDP growth, the government of Bhutan, it should be noted, ironically prefers to measure its progress through its Gross National Happiness Index rather than the standard GDP.)
Indonesia is expected to grow by 5.0%, as consumption increases due to rising household incomes. According to CSA Research’s Digital Opportunity: The Top 100 Languages for 2017 report, Indonesian represents the fastest-growing language online, with a market share increase of 101%.
Not growing as quickly as many of its neighbors, but still representing an economy that is solidly expanding is South Korea, with a growth rate of approximately 3.0% through the year 2019 according to the OECD report. This is seen as being buoyed by stronger global trade and greater fiscal support.
New Zealand’s economy is also looking robust, with GDP growth predicted to increase to more than 3.0% in 2018 and 2019, with stronger investments and exports supporting the growth trends.
What All of This Growth Means for Your Brand
Targeting fast-growing markets around the world for your global expansion provides your company with a path to more substantial, accelerated growth. In addition, targeting fast-growing markets can provide your brand with a strong competitive advantage.
When looking at global growth markets, Asia is where the action is. It behooves you to evaluate the Chinese, Indian, Vietnamese, and other Asian markets as potential areas in which your business can gain traction, adopt new loyal customers, and support your evolution as a business.