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Repercussions Of The Bric Report

Posted by Anonymous on 6/10/2004 at 7:03 AM ET 250 Points
With Goldman Sachs coming out with the BRIC Report, I have been wondering that if Brazil, Russia, India and China are to be the future Economic Superpowers, then why is it that Global Companies are not indulging in marketing and brand building activities in these countries on a scale similar if not higher, to the amount of marketing and brand building that they do in the European Nations and America.
Obviously, if you start building your brand Identity now, you get your pay-off after quite a few years and hence, shouldnt American companies start focusing on these emerging markets more than they focus on the saturated markets such as Europe and USA.? What will be the repurcussions of this BRIC report on the Marketing Plans of these conglomerates?
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  • Posted by Peter (henna gaijin) on 6/10/2004 at 1:00 PM Member
    The fact that these four countries are called *FUTURE* superpowers is key. The question is when. And I believe it won't be for at least another generation, assuming the countries can successfully handle the challenges they have coming up.

    Countries move from developing to superpower over a long period of time. There is a process of moving from a manufacturer of low tech goods up through manufacturing higher tech goods through starting to being a consumer economy through moving to an investor economy. If you follow Japan's history, it was only 1985 or 1990 that you would call them an economic superpower (and they started the process just after WWII, if not before). You could follow the similar growth patterns for Taiwan and Korea, which are a little behind Japan but trying to catch.

    There are many challenges each country will have to get through to pass from stage to stage. There is much talk now that China is about to hit a bump as they try to prevent an economic buddle from popping. India seems to be dealing with a change in Government Ok. Russia still has many questions due to arresting the leader of their largest company. And there is always politics, corruption, infrastructure problems, polution, wars, etc. to challenge each BRIC country.

    What is different about these countries from past countries that went through the growth cycle is the shear size of the population. But they are not a consumer economy yet (most of their populations live on a few dollars a day). It will be interesting to see how this all comes out.
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