Are Emerging Markets Still Relevant?

By SCMR Staff
October 31, 2013 - SCMR Editorial

Over the past few years, changing trade dynamics have placed a greater focus on emerging countries.

As a result, these countries, such as Brazil, Vietnam, Bahrain and Mexico have experienced impressive growth in trade, manufacturing and growing consumer demand for goods. However, this year, many of these countries seem to have hit a “bump in the road”. The bumps vary by country but for many, they may include currency issues, rising inflation, infrastructure concerns and shifting focus towards improving conditions in Europe and the US.

Despite these “bumps”, the emerging countries continue to grow, albeit a bit slower. Investments are still being made, companies are still expanding and the consumer-base continues to grow in these emerging countries.

For example, Southeast Asian countries such as Indonesia, Cambodia, Laos and Vietnam are expanding ports, roads, rail and airports. Meanwhile, the current economic situation may have resulted in temporary slowdowns in companies’ financial sheets. However, consumer-goods company Unilever, which reported slower sales for its most recent quarter, derives almost 60% of its total sales in emerging countries and is maintaining its strategy to invest in these countries by expanding and introducing new product lines. 

The population in emerging countries is also growing and outpacing Europe and US. In fact, these developing countries comprise 80% of the world’s population. According to Ernst & Young, by 2030, it is believed two-thirds of the global middle class will live in the Asia-Pacific region, up from just under one-third in 2009. India’s middle class, meanwhile, at around 50m people, or 5% of the population, is expected to grow steadily over the next decade, reaching 200m by 2020.

The potential of these developing countries remains strong and still influences business strategies. Over the past few years London-based Transport Intelligence has studied these trends and has just launched its latest survey to measure the current trends.  The results will support its exclusive and unique index comparing the world’s major developing logistics markets and will help Ti analysts gain an insight into some of the challenges present in doing business in these emerging markets. Among the questions that are asked in the survey include what emerging country will emerge as a major logistics market in the next five years? Which tradelanes will have the greatest potential for future growth? And what vertical sectors will have the greatest potential for future growth in emerging markets?

To take part of the survey, just follow the link below.

https://www.surveymonkey.com/s/EmergingMarketsIndex2013

Survey respondents will be entered for a chance to win one of four available iPad Minis. Also, as a thank you, all participants will receive a copy of the white paper highlighting the findings of the survey. Furthermore, participants will receive a free report from our Logistics Monitor series (subscription price £495), containing a snapshot of the transport and logistics industry with expert insights from Ti’s Senior Analysts.



Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The long-simmering court battle over whether FedEx Ground’s workers are independent contractors or employees appears headed to the appellate courts—and maybe the U.S. Supreme Court.

Carload volume headed up 4.3 percent to 298,376, and intermodal units, at 273,376 containers and trailers were up 4.8 percent annually.

In light on various service-related freight railroad service issues, the Department of Transportation’s Surface Transportation Board (STB) recently announced it is now requiring Class I railroads to publicly file weekly data reports on service performance. These weekly reports are slated to begin on October 22.

According to its data, spot market volume for the month of September was up 32 percent on an annual basis and set a new record for the 14th straight month, with gains for each of the three equipment categories it tracks, including load availability for: dry vans up 42 percent; refrigerated (reefer) up 24 percent; and flatbed volume up 46 percent.

FedEx Freight and Con-way Freight, two of the largest non-union LTL carriers in the nation, are battling organizing efforts by the Teamsters union in a closely watched unionization effort.

Article Topics

News · Global · Logistics · Trade · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.