Many major companies’ earnings reports serve as a global map of where U.S. products and brands are making inroads in trade. These new areas of commerce hold the potential for new revenue to make up losses sustained during and after the Great Recession in the markets of the United States and Europe.
Since opening up to the global markets in 1991, the country has seen steady growth with better jobs and more disposable income among its residents. This area’s GDP has grown above 8 percent per year, according to an investment report from Ernst & Young India. The rise of urbanization and technology has made the country ripe for expansion of various American products and fairly well insulated from the global downturn. Familiar U.S. brands such as Starbucks and McDonald’s continue to evolve with their Indian sites. Starbucks CEO Howard Schultz predicts that India will become one of the chain’s top five markets, while McDonald’s is moving toward vegetarian sites in the country. With a demand for cleaner fuel, U.S. investors are looking ahead to the export of liquefied natural gas to the country.
While this market certainly is not new, no list of emerging markets is complete without it, given its continued explosive growth that supports nearly all markets in the world. U.S. cities nationwide have seen their exports to China soar. In 28 states, China is the largest recipient of U.S. goods. Computers, food and chemical products are among the most popular items sent to the country. For Starbucks, who already has 700 stores in the country, plans for 1,500 China sites would make the area the chain’s biggest market outside of the United States.
While it might lag as a home to millionaires compared with Russia and Hong Kong, all three are ahead of the United States in this area as hot zones of money. Colombia and Brazil both work hard to be investment friendly, and Brazil in particular has been the focus of many U.S. interests as a regional leader in business. Brazil also will be a star on the world stage for the 2014 World Cup and 2016 Olympics, which offer a wealth of marketing potential for businesses and brands. Investing in Mexico has also experienced a resurgence, and the country's buying power for American goods has greatly increased as well.
This area was among the top 10 of U.S. export markets in 2011 according to the U.S.-China Business Council, and it shows continued robust growth. The country’s gateway access to China ties the two markets together, making it easy for many U.S. manufacturers to cover both areas with targeted shipments. Many U.S. retailers have relied on their shops in Hong Kong to help lift overall store results. Most chains you would see in U.S. malls, such as Forever 21, Abercrombie & Fitch and The Gap, keep a strong presence in the area.
About the author: Denise Ferrier is a freelance business blogger.
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