Iconosphere 2009

BRIC and Beyond:

Laying the Foundations
for a Global Future
Jeff Yang
VP, Consumer Strategist
Global View

Valeria Piaggio
VP, Consumer Strategist
Global View

Shreya Mukherjee
Director, Consumer Strategist
Global View
Agenda
• The E Opportunity: Why Emerging Markets are
important for marketers tomorrow—and today
• Getting to know the E Consumer: Three critical
forces driving consumption and growth
• Bringing it back to business: How to take
advantage of the E Opportunity – even if your
brand is domestic
 Consumers’ spending power in
emerging economies is expected to
rise from $4 trillion in 2006 to more
than $9 trillion by the middle of the
next decade. By that time, almost a
billion people will enjoy incomes of at
least $5,000 per year.
Economist 5.15.08
 According to World Bank research
in 2000, developing countries were
home to 56% of the global middle
class, but by 2030 that figure is
expected to reach 93%.
Knowledge@Wharton 9.7.08
 More and more economists think
the United States and the rest of the
world may be moving in different
directions.
Newsweek 2.4.08
Emerging Opportunity
Shelter from the storm. With the global economy in a downward
spiral, the fast-growing EM economies offer greener pastures where
growth is still robust, and products and brands can still flourish.

Photo courtesy of Luciana Stein, Iconoculture Cultural Fluent, Brazil

Emerging Opportunity
• Coming into their own. Unlike developed markets, EM countries
have a rapidly expanding consumer base – due to higher
birthrates and/or the move of big parts of the population up from
the bottom of the pyramid.

• Aspiring toward more. It’s not just the size – it’s the rise. EM
consumers are surging into the middle class, with booming
disposable incomes and a growing taste for the finer things.

• The power to spend. The rising income of EM consumers is

being further boosted by two critical factors: strong local
currencies and increased access to consumer credit.
BRIC
Brazil
Russia
India
China
BRIC: Brazil, Russia, India, China
• What sets apart the BRIC countries?

MASSIVE GEOGRAPHICAL SIZE

DEEP RESOURCES

HUGE POPULATIONS
BRIC
Sources of Power
BRIC countries source of power
Brazil: Coasting as Commodities Soar
• “A large share of the world's beef, orange juice, soybeans and
iron ore comes from the great green elbow.” (Economist 4.17.08)

Top left: Flickr.com/Photos/LFCastro image; bottom left: Flickr.com/Photos/Giselle

image; middle: Flickr.com/Photos/Estarsid image; right: Clarin.com image
BRIC countries source of power
Russia: Plenty in the Tank
• Russia’s GDP has been
growing
an average of 7% per year for
the past decade.
• Real disposable income has
nearly doubled in the past five
years (Economist 6.5.08).
• Goldman, Sachs & Co. predicts
Russia will be the world’s
eighth-largest economy by
2025, with a per capita income
of $45,000 (BusinessWeek
2.20.06).
Flickr.com/Photos/Vtwhitelight image
CHINDIA: China and India
People as a primary resource
• China’s growth has been driven by
manufacturing, but it’s building its
postindustrial base.
• India has succeeded in sectors like
IT, software and pharmaceuticals,
but is investing in industries like
automobiles and computer
hardware.
• The two have complimentary
strengths and an increasingly warm
relationship. The implications for the
future are profound.

Photo courtesy of Naudia Lou, Iconoculture Cultural Fluent, China

CHINDIA: China and India
What happens when the two biggest and fastest growing
countries in the world join forces?
“Together, the dragon and the elephant rule the world.”

Left: Photo courtesy of Naudia Lou, Iconoculture Cultural Fluent, China;

right: photo courtesy Anindita Sengupta, Iconoculture Cultural Fluent, Inda
The Next Tier
“Frontier markets” or the “Emerging Emerging”
• This next bloc of EMs includes high-profile economies
like Mexico and Turkey, but also unfamiliar ones such
as Bangladesh, Egypt, Indonesia, Iran, Nigeria,
Pakistan, Philippines and Vietnam.
• With their large and growing populations, these
countries have the capacity for the kind of growth that
over the next several decades may rival the BRICs, and
are certain to far outstrip the G7.
Worldwide Impact

Global Culture
Economy

International
Politics
Business
The EM-Effect: International Politics

Flickr.com/Photos/Nafmo images
The EM-Effect: Global Economy

IMAGE SOURCE
The EM-Effect: Business
60 of Fortune magazine’s top 500 global companies are
now based in emerging markets.

Left: NEED IMAGE SOURCE; right: photo courtesy of Sairica Rose,

Iconoculture Cultural Fluent, Spain
The EM-Effect: Culture

Left: Photo courtesy of Luciana Stein, Iconoculture Cultural Fluent, Brazil;

top middle: photo courtesy Sairica Rose, Iconoculture Cultural Fluent, Spain,
bottom middle: photo courtesy Jason Hughes, Iconoculture Cultural
Fluent, Canada; right: photo courtesy Lindsay Paterson, Iconoculture
Cultural Fluent, France
Getting to know the EM Consumer
Three consumer patterns that are key to understanding
this upwardly mobile group:

• The New and Leapfrogging Consumer

• Glocal Aspirations
• Women Power
Leapfroggers
Shedding the shackles of poverty, communism, economic crisis or nonexistent
consumer credit, emerging consumers are embracing consumption at broadband
speeds. The jump to adopt new products and services is quite abrupt and often
misses some steps in between. And even though recent economic woes have
deaccelerated the pace, the emerging consumer has tasted the good life and is not
about to give it up.

Left: Photo courtesy of Anna Coppola, Iconoculture Cultural Fluent, Russia;

others: photos courtesy of Paula Alvarado, Iconoculture Cultural Fluent, Argentina
Leapfroggers

Photo courtesy of Anna Coppola, Iconoculture Cultural Fluent, Russia

Leapfroggers

Photos courtesy of Anna Coppola, Iconoculture Cultural Fluent, Russia

Leapfroggers

Photo courtesy of Naudia Lou, Iconoculture Cultural Fluent, China

Leapfroggers

Photo courtesy of Paula Alvarado, Iconoculture Cultural Fluent, Argentina

Leapfroggers
Metatrend: Mobility

Key values: aspiration, access,

empowerment, savvy

Photo courtesy of Anna Coppola, Iconoculture Cultural Fluent, Russia

Leapfroggers

Video to be inserted here.

Glocal Aspirations
Global with a local twist seems to be the right concoction. Emerging-market
consumers are eager to adopt what they see as a more modern and cooler lifestyle
while adapting those things to their particular needs, preferences and wallets. Some
product categories require more localization than others: food/beverage, fashion and
health/beauty are areas where taste, tradition and other cultural factors are at play.

Left: Photo courtesy of Anindita Sengupta, Iconoculture Cultural Fluent, India;

middle: photo courtesy of Anna Coppola, Iconoculture Cultural Fluent, Russia;
right: Flickr.com/Photos/Betchaboy image
Glocal Aspirations

Photo courtesy of Naudia Lou, Iconoculture Cultural Fluent, China

Glocal Aspirations

Photo courtesy of Naudia Lou, Iconoculture Cultural Fluent, China

Glocal Aspirations
Metatrend: Complexity

Key values: experience,

discovery, tradition, growth

Photo courtesy of Anindita Sengupta, Iconoculture Cultural Fluent, India

Glocal Aspirations

Video to be inserted here.

Women Power
Women in emerging markets are generating a new wave of feminism that is unique
to their cultures, characterized by the desire to balance new and traditional roles.
This movement is marked by big strides women are making in education, health
and business, as well as smaller ones in politics. There are everyday wins as well,
from who does the dishes to who drives the family car (or fixes it, for that matter).
Big or small, all improvements count. The result? EM women are changing history,
their local economies, their families and their own lives.

Left: Photo courtesy of Patrick Corcoran, Iconoculture Cultural Fluent, Mexico;

middle: photo courtesy of Luciana Stein, Iconoculture Cultural Fluent, Brazil;
right: photo courtesy of Juliana Medrano, Iconoculture Cultural Fluent, Argentina
Women Power

NEED IMAGE SOURCES

Women Power
Metatrend: Complexity

Key values: empowerment,

power, change, growth

Photo courtesy of Luciana Stein, Iconoculture Cultural Fluent, Brazil

Women Power

Video to be inserted here.

Brazil: Casas Bahias
Category: Retail
Selling Affection

CasasBahia.com.br image; YouTube.com video

Russia: IKEA
Category: Home
An Agent of Change

Left: RussiaWithLove.Blogspot.com image; right: Carpetblog.typepad.com image

India: Maruti Suzuki
Category: Auto
Unity in Diversity

Please insert video here

http://www.marutisuzuki.com/commercials.aspx

CarsIndia.org image; MarutiSuzuki.com video

China: Olay (P&G)
Category: Beauty
Connecting with Today’s Women

Middle: FMD1.com image; others: Olay.com.cn images

Key takeaway: The world of 2020
Today’s centerless world won’t be that centerless
anymore, not when Chindia is poised to be the
next global superpower.

Emerging nations will be dominating, and brands

that did not get acquainted with those markets
and their millions of consumers will have to do
too much, too late.
Jeff Yang
VP, Consumer Strategist
Global View
jyang@iconoculture.com

Valeria Piaggio
VP, Consumer Strategist
Global View
vpiaggio@iconoculture.com

Shreya Mukherjee
Director, Consumer Strategist
Global View
smukherjee@iconoculture.com