With their growing economies, rising incomes and young, expanding populations, the five emerging markets of Nigeria, Indonesia, Mexico, Philippines and Turkey offer a wealth of opportunities for marketers facing stagnant demand in developed markets. However, these countries are far from homogenous, each with its own advantages and drawbacks. Following on from our recent BRICS report, this new global study compares and contrasts the “NIMPTs” and their potential as consumer markets.
The five emerging markets of Nigeria, Indonesia, Mexico, the Philippines and Turkey (collectively dubbed here the “NIMPTs”) are tipped to provide some of the most exciting growth opportunities for consumer goods manufacturers.
All five economies performed well over the review period. Indonesia and Nigeria showed the strongest real GDP growth between 2008 and 2013, averaging 6%, followed closely by the Philippines (5%).
While smaller than their BRICS counterparts (Brazil, Russia, India, China, South Africa), the NIMPT countries have similar levels of purchasing power on a per capita basis.
Although their economies are very different in size, with Mexico’s GDP being more than four times that of the Philippines in 2013, all offer promising long-term potential for investors.
The five markets have large populations, ranging from 75.6 million in Turkey to 247.2 million in Indonesia. They all experienced population growth over the review period, with Nigeria’s increasing at the highest rate, of 13%.
All the NIMPTs have relatively youthful demographics. The highest mean age among the five countries in 2013 was 30 years (Turkey), which was still far lower than in most developed markets.
Compared to developed markets, average household sizes are large in all of the NIMPTs countries but this is gradually changing due to urbanisation, the growing number of working women, lower fertility and later marriage.
Indonesia and the Philippines are still predominantly rural, with only 49% and 45% of their populations classified as urban. Despite this, Greater Jakarta is believed to be the world’s second most populated urban area, with over 26 million people.
Big cities are expanding in all countries as a result of on-going industrialisation. Mexico and Turkey are the most urbanised of the five, with almost 79% and 71% of their populations living in urban areas in 2013.
All five countries have suffered for several years from a combination of ethnic tensions, anti-government protests, drug-related violence and national insurgencies. Poverty and income disparity are prevalent, creating a huge wealth gap between rich and poor.
However, a new middle class is expanding, due to social reforms and wealth created by economic progress trickling down to reach more consumers.
In 2013, Mexico and Turkey recorded the highest per household disposable incomes of the five markets, at US$32,282 and US$29,818, respectively, while Indonesia ranked lowest with a per-household disposable income of US$8,044.
Indonesia made by far the fastest progress over the review period, as economic growth, low unemployment and high commodity prices led to a progressive rise in earnings and boosted consumer confidence.
Unemployment is 5% in Mexico and 23% in Nigeria. However, what all five have in common is very large informal sectors, which distorts employment figures and makes for low wages and poor job security.
The use of the internet and mobile phones rose rapidly throughout the five markets during the review period – in some cases from a very small base. This has had a major impact on consumer lifestyles and companies’ methods of marketing communication.
Turkey and Mexico are most connected of the five nations, with internet usership rates of 46% and 44%, respectively, in 2013. Indonesia lagged behind with just 16% of its population using the internet and less than 3% of households having a broadband internet enabled computer.
Indonesia nevertheless ranked highest when it came to mobile internet subscriptions, with a massive 100.5 million subscriptions in 2013 (equal to 1.6 per household), compared with just 16.6 million in Mexico (0.6 per household).
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