Everyone knows the Big Five emerging markets. Referred to as BRICS (Brazil, Russia, India, China and South Africa), this quintet represents the largest players. However, they are far from the only ones. The International Monetary Fund estimates that emerging markets will grow two to three times faster than those of developed nations in the coming decade. By examining the latest market research, we’ve identified five more emerging markets around the globe that represent rich opportunities for expanding specialty retail businesses – if they’re targeted correctly.
Peru
This year, Bloomberg rated this South American country the #4 emerging market. The ranking was based on more than a dozen factors, including an anticipated GDP growth of 27.4% from 2013-2017. Overall, its economy is growing by 6.2%. One key indicator is the construction industry, which expanded by 18.4% this January. According to market research, Peru is perfect for food and drink specialty manufacturers. They account for 33.4% of all specialist retailer sales with sales of PEN19,134.9 million in 2011. Looking ahead, the three fastest growing specialist retailer categories are apparel, accessories and luxury goods (growing at a rate of 7.71%), food and grocery (7.24%), and electrical and electronics (7.02%).
Czech Republic
This Eastern European country has a projected GDP growth rate of 21.1% by 2017. Specialist retailers have many opportunities for growth in this market. Sales in that sector amounted to CZK103,244.9 million in 2011. Those sales are predicted to rise to CZK366,014.3 million by 2016. The main earners here are the food and grocery category, followed by electrical and electronics. The latter is set to generate annual sales of CZK61,920.7 in 2016.
Turkey
The worldwide recession largely missed Turkey. There has been steady GDP growth at a rate of 3% over the past five years. On top of this, both consumer and commercial lending are incredibly strong. The lending growth rate grew by an impressive 24% this past March. Specialty retailers rang up TRY108,277.5 million in sales in 2011, a figure that is projected to reach TRY153,355.0 million in 2016. Electrical and electronics specialists dominated with sales of TRY28,418.4 million in 2011 with an estimated TRY40,650.2 million in sales by the end of 2016.
Colombia
With a strong credit rating, growing middle class, and marked economic expansion, this South American country is set to be a major player on the world stage. There are many opportunities for specialty retailers here, especially in the electrical and electronics category and the music, video, book, stationery and entertainment software space. By 2016, electrical and electronics specialists are predicted to see a 7.94% sales increase, while the music, video, book, stationery and entertainment software specialists are set to see a 6.23% rise.
Malaysia
GDP growth of this Asian country is predicted to rise by an astonishing 21.8% by 2016. Additionally, Bloomberg recently ranked them the #12 country for their ease of doing business, which makes them an advantageous partner for companies seeking a new expansion market. Food and drinks specialists lead specialty retail here with sales of MYR18,907.2 million in 2011. The quickest growing categories here in 2016 are projected to be music, video and entertainment software (10.35%), apparel, accessories and luxury goods (6.02%), and home and garden products (4.88%).
It’s time to start looking beyond BRICS – there’s a whole new world out there.
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Thanks for reading!
Nevin Martell
