Emerging Market:

Few days back, I was reading some articles related to the new markets in the world where the companies are exploring market for their growth.
In this recession recovery period, we all have the same question, what is next? Where to go? Since business is coming at the edge of stagnation in the existing market. Where are the opportunities? Everyone is looking here and there. From automobile to telecom, all domain companies are searching for emerging market.
Then I decided to know what emerging market is? How do we decide that this country can be emerging marketing and I got to know-"Emerging markets are nations with social or business activity in the process of rapid growth and industrialization”. The phrase was defined in terms of economics and levels of wealth. Emerging markets are economies with low-to-middle per capita income.
In recent years, few terms have emerged to describe the largest developing countries such as BRIC (word is given by Goldman Sachs) that stands for Brazil, Russia, India, and China, BRICS (BRIC + South Africa) and CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa).Some experts believe that they are enjoying an increasing role in the world economy and on political platforms.
Few months before there was a statement from CEO of HSBC bank, he said, "After BRICs, look to CIVETS for growth”. As per his statement-The size of the emerging market middle class will swell to 1.2 billion people by 2030, from 250 million in 2000.hence banking sector has a lot of scope to further grow in these countries.
Emerging markets are characterized by strong economic growth, resulting in an often marked rise in GDP and disposable income. As a result, people in emerging countries are often able to buy goods and services that they previously would not have been able to afford. This provides international companies with the opportunity to tap large, new customer bases, potentially driving significant growth for a number of companies and industries. Though disposable incomes in emerging markets are rising, many of their citizens are still relatively poor. Luxury goods such as high-end automobiles and designer clothes are sure to benefit from the increased purchasing power of emerging economies, but everyday luxuries such as cell phones and brand name food products are becoming popular much more quickly. For example, the number of wireless subscribers in India grew at a compound annual growth rate of 91% from 2000 to 2005, and coca-cola company predicts that the BRIC countries will account for 41% of the company's growth by 2008.

Companies that benefit from growth in emerging markets:

Auto companies:
Ford Motor Company (F), General Motors (GM), Toyota Motor (TM), Honda Motor Company (HMC), and other car companies would benefit from increased demand for automobiles. As emerging countries improve their infrastructure and their GDPs continue to rise, the demand for cars is likely to increase as well.
Food and beverage manufacturers
Coca-Cola Company, PepsiCo, Kraft Foods and other food and beverage manufacturers have seen strong growth in emerging markets in recent years. As incomes rise, packaged food becomes more accessible for a larger percentage of the population, stimulating demand for these companies' products.
Mobile (telecom) companies:
The Indian telecommunications industry is one of the fastest growing in the world. According to the Telecom Regulatory Authority of India (TRAI), the number of telephone subscriber base in the country reached 653.92 million as on May 31, 2010, an increase of 2.49 per cent from 638.05 million in April 2010. With this the overall tele-density (telephones per 100 people) has touched 55.38. The wireless subscriber base has increased to 617.53 million at the end of May 2010 from 601.22 million in April 2010, registering a growth of 2.71 per cent.
Not only will India surpass China in terms of the total number of active subscriptions by 2013, but, according to Informa's forecasts, the Indian market will have a higher subscription penetration rate (75 per cent ) than China's by the end of 2011 (69 per cent ). By the end of 2014, India's subscription penetration will be 101 per cent.
Raw material suppliers:
BHP Billiton, Rio Tinto and other integrated mining companies have already benefitted from the explosive demand growth of emerging markets, especially China.
Industrial gas companies:
Praxair, Air Products and Chemicals, and other industrial gas companies stand to benefit as demand for their product grows; current per capita gas consumption in emerging markets is very low compared to developed countries. As consumption rises, demand for industrial gases will be stimulated.
Advertising Firms:
As growth in advertising spending slows in mature markets such as the United States and Western Europe, advertising conglomerates like Omnicom Group (OMC) and Interpublic Group of Companies (IPG) are shifting their focus to Russia, China, India and other emerging markets, where advertising spending is growing at much higher rates.