Global Leaders of Growth: The BRICI Markets
As globalization extends into greater reaches of the world and the Internet becomes more readily available, new countries will soon become drivers of online growth. Five of these countries, known as the BRICI countries, will make up 1.2 billion Internet users by 2015. Brazil, Russia, India, China and Indonesia, which now have more than 610 million Internet users, will double their users by 2015.
A report released by The Boston Consulting Group in late 2010 outlines the predicted growth of the BRICI markets, revealing these countries as major players in the evolution of the digital marketplace. There are a number of economic, social and cultural factors at work, and as more BRICI Internet users achieve higher incomes and create a greater online presence, businesses can capitalize on their entry into mainstream Internet use.
Together, the BRICI markets made up about 45 percent of the world’s population in 2009. The expected 1.2 billion Internet users by 2015 would be three times the number of Internet users in the U.S. and Japan combined. Internet penetration rates in these countries is expected to grow by 9 – 20 percent yearly, and PC penetration rates, which have been historically low, are expected to climb as well.
Currently, there are about 440 million PCs in the BRICI markets – The Boston Consulting Group expects this number to double by 2015. Along with the prevalence of mobile devices with Internet access, the Internet in BRICI markets will become more accessible than ever before.
What Does this Mean for Businesses?
Simply, a market of 1.2 billion Internet users can’t be ignored. Businesses that will expand into these markets will be able to monetize services, products and web properties that weren’t previously feasible, or profitable. As the trends from the BRICI market become more concrete, businesses will be able to see how these users are spending their time online, what their interests are and how to best reach them.
As it is, there is a general idea of how the Internet is used in these markets. Internet users in China spend more time instant messaging and listening to online music; users in India focus on email and job hunting. Those in Brazil spend their time on search engines and social networks, and those in Russia spend a balanced amount of time on all of the above.
Mobile Internet use is a major factor in BRICI Internet access. Because of the costs and resources associated with PCs, many users skip this stage and head directly to an Internet-accessible mobile device. For businesses, this means that many of their potential customers will be accessing the Internet from phones, which means advertisers must adapt their advertising and marketing methods to fit the mobile audience.
In the next few years, the BRICI market will make up a large percentage of worldwide Internet users. For businesses that can meet the demands of this ever-changing market, the BRICI countries represent boundless opportunity and global growth.
