SMAC (Social, Mobility, Analytics and Cloud) brings important technological contributions for making this happen. SMAC, especially Mobility, brought a sense of empowerment to many, and a lot of mobile apps are being developed as a result of it. Further, startup culture is rapidly flowering in the technology space, and most of them focus on high technology mobile apps for urban markets.
Market with Growth Potential for Mobiles
If we analyze the data related to mobile subscription, per 100 inhabitants, as per following plot in Figure 1, we see that a rapid growth in that is happening in the developing countries (about six times to that of developed countries).
Logically also, it could be understood that in the developing countries, in semi-urban and rural areas, a big family or locality share a mobile phone subscription, and as they grow in their earning power, the number of mobile subscription for that family or locality also grows. Understanding this growing market, many companies are also focusing on related business opportunities.
Hence we must also understand ‘what this market is’ and ‘what its needs are’.
Emerging Market
As per Wikipedia, an emerging market is a socioeconomic classification applied (with varying definitions) by economists and political scientists to countries that have economic activity stronger than a least developed country but generally weaker than a developed country. This may include newly industrialized countries, and those that may be developed markets in the future or were in the past.
A country may be classified as a “frontier market” if it no longer meets the criteria for an emerging market due to economic slowdown. It may be a nation with social or business activity in the process of rapid growth and industrialization. The economies of China (excluding Hong Kong and Macau, as both are developed) and India are considered to be the largest. According to The Economist, many people find the term outdated, but no new term has gained traction. Emerging market hedge fund capital reached a record new level in the first quarter of 2011 of $121 billion.
The four largest emerging and developing economies by either nominal or PPP-adjusted GDP are the BRIC countries (Brazil, Russia, India and China). The next five largest markets are South Korea, Mexico, Indonesia, Turkey, and Saudi Arabia, although South Korea is not considered as an emerging market by most sources. Iran is also considered as an emerging market. More @ http://en.wikipedia.org/wiki/Emerging_markets
The Developmental Needs of Emerging Market
The ‘Millennium Development Goals’, as defined by United Nations, talk about the needs for development for the emerging market, as illustrated in Figure 2.
As per Figure 2, eradicating extreme poverty and hunger is the first goal towards achieving development. The second goal talks about achieving universal primary education. Further these goals talk about women empowerment and gender equality, providing right healthcare facilities related to child mortality, maternity and other cases. Next, the focus moves towards ensuring environmental sustainability, and then towards developing global partnership for development.
Hence technological contributions in agricultural, educational and healthcare sectors, in emerging markets, are important to help bring these improvements – help achieve Millennium Development Goals. Further, it is important to manage finance for the one who earns, to raise the bar in which people live.
Anvita Bajpai - Author of "Life, Odds & Ends", Speaker, and Lead Consultant, CTO Office, Wipro - is an IIT Madras and IIM Bangalore alumni ...
