Technology and the internet have driven wide growth and innovation around the world, but this has been most widely felt in developed countries where more people have been able to take advantage of these innovations and the opportunities they create. Now, looking ahead, many economists and business analysts are looking to emerging markets as the scenes of extraordinary growth in the next 10-20 years. As such, the BRIC countries (Brazil, Russia, India, and China) have shown the greatest immediate promise for emerging markets as they are the next to essentially come-of-age economically and have seen great deals of attention and investment as a result.
Now, the CIVETS countries (Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa) are being slated as the next wave of emerging markets (after the BRIC) that will attract business, investment, and show tremendous growth. This newly anointed group presents unique opportunity for many reasons. First, the underlying characteristics of a CIVETS nations is a multifaceted economy and a young, expanding population, according to John Mulholland of the UK's Guardian. Both of these characteristics support the growth of the internet and technology in these economies opening the door for businesses from different sectors but especially those in tech-related areas within e-commerce, SEO and internet marketing, mobile services, tech devices, and internet-based solutions.
CIVETS countries are expected to experience growth rates of 4.9% over the next two decades compared to the 1.8% expected in G7 countries, according to the Economist Intelligence Unit. Stability, soundness of institutions, and the growth rate up to this point have all led to these expectations. As an example, Colombia's GDP has doubled over the past 10 years.
Expansion for Businesses
Companies have the opportunity to make their mark on these economies early with competition lacking at the moment as outside investment and expansion into the market has yet to take hold. This point is brought forward by Christian Arno in a recent Search Engine Watch piece. The value in entering a market early that is set for very high growth should not be underestimated. From an exposure and branding perspective, to PR and marketing, there is simply tremendous potential to gain brand recognition and establish a loyal customer base early in the evolution of market.
Check back tomorrow, and I'll get deeper into the tech and internet opportunities of the CIVETS countries and the how their younger population factors into their future.