In the paper titled ‘Reaching the emerging markets beyond BRIC,’ the company highlight the successful strategies used by companies such as Unilever to appeal to the consumers in these countries, such as using grassroots distribution in Indonesia and sponsoring charitable programs in developing markets.
The report also highlights the huge growth in wealth and population in the developing world, with the balance of power in terms of consumer spending likely to shift over the next few decades.
Pitfalls for investing
Emerging markets beyond this select group of countries are increasingly being targeted by companies and advertisers in order to expand their market reach.
However, the report also suggests a cautious approach in deciding which markets to invest in, pointing out that in many low-ranking emerging markets, such as Kenya, consumer spending is low and essentials still comprise around half of the average household budget.
The company suggests that it is therefore very important to tailor promotions of products to local markets.
Unilever's emerging market strategy
Cosmetic giant Unilever has been lauded for its progressive strategy in emerging markets outside the BRIC, particularly for its personal care brands.
In Indonesia, the company has a programme to provide family planning workers with another source of income by encouraging them to work with Unilever distributors, thus adding to its distribution network and, at the same time, encouraging more women to attend family planning clinics.
They have also been praised for increasing knowledge of their Lifebuoy soap brand by sponsoring a hand-washing program in emerging markets, with the aim of reaching one billion people in emerging markets by 2015.
"Beyond the BRIC"
'Beyond the BRIC' shows that in the years from 2000 to 2013, the percentage of global GDP controlled by emerging markets has gone from 37% to 50%. Despite the currency crisis affecting many countries, Euromonitor analysts are confident that the fundamentals of these economies point towards strong growth in the future.
The BRIC is a collection of fast-growing emerging markets comprising Brazil, Russia, India and China, and is often the first place which companies look when developing products beyond the Western world.
However, the Euromonitor report highlights the fact that these countries are now suffering from slowing economies, particularly China and India, and their middle class is also becoming "more savvy and selective" in buying products.