Spotlight on Brazil, Russia, India and China
Companies are spending more executive time investigating opportunities in emerging markets (Brazil, Russia, India, China). In the long term, these emerging markets are expected to expand, driven by their fast-growing middle class. The increasing importance of these markets is a major opportunity that should not be underestimated. That’s what we said in 2008 and 2009 when we introduced our Business Risk Report for media and entertainment (M&E). And it’s still true. What’s also true is some of these economies have been experiencing double-digit growth annually in recent years and continue to grow, despite the global economic crisis. Growth strategies in most companies in the US and Western Europe are linked to growth in these new markets. Companies are focused on the best way to enter, grow and brand their business in these markets. Brazil, Russia, India and China (BRIC) are attracting signiﬁcant attention because of a surge in demand for content. Accounting for 40% of humanity, they are the future for global media growth. Currently, some of the largest M&E companies are making less than 10% of their global sales from BRIC economies, but management within these companies is spending a disproportionate amount of their time dealing with these markets. To win in these markets, there are several success factors that global companies need to take into account. While there are many opportunities to tap, there are some unique challenges, too, in the areas of technology, distribution, regulations, piracy and so on, which global companies need to address. In the report that follows, we examine the M&E landscape in each of the BRIC nations and provide an overview of the opportunities, success factors and key challenges in doing business there. I would like to thank our team in India under the leadership of Farokh Balsara for their efforts in preparing this report and providing valuable insights.
John Nendick Global Media & Entertainment Leader, Ernst & Young
Economic growth coupled with large populations in Brazil, Russia, India and China, is leading to growing purchasing power. A multitude of consumers with increasing disposable income offer myriad opportunities to global M&E companies. However, these dynamic markets also present a unique set of challenges. To enter and win in these BRIC markets, companies must prepare, plan and partner carefully.
Global Media & Entertainment Center
Brazil, Russia, India and China (BRIC) economies are the future building blocks of the world economy. BRIC economies together account for over 25% of the world’s land coverage, 40% of the world’s population and hold a combined (GDP) of US$8.7 trillion.1 Together, they are among the fastest-emerging economies and will be the growth engines of the global economy. In this report, we examine the M&E landscape in each of the four countries and provide an overview of the key opportunities, challenges and critical success factors in doing business there.
As companies think through their globalization strategies, we decided to look at some of the important indicators of the market attractiveness for each of the four countries. Market size, growth rates, demographics and penetration of new media platforms are some of the indicators used. Figure 1 below, indicates that while Brazil and Russia have a high GDP per capita and urbanization rate, India and China score high on population, number of television households and mobile subscribers. This highlights the immense potential that these countries hold and the several opportunities they present.
Figure 1: Performance indicators across BRIC economies1
Indicators GDP1 (US$ billion) GDP growth (% change from 2008) GDP per capita1 (US$)...