Building a true global market is easier said than done.
It requires a lot of market research to know when and where to expand to; you need to know what’s trending and how fast the economy is growing, as well as the expected population growth rate and GDP.
It can be easy to miss out on emerging markets that have incredible potential, but if you keep your eye on these four countries when paying out into global markets, you might just strike it lucky.
India is the second most populated country in the world right behind China, and the 7th largest economy in the world.
According to the Economic Times, South Asia contributes more than 60% to global growth, three-quarters of which comes from India and China. This is expected to grow another 6.4% in 2019.
India remains a poor country, but its rapid economic growth and rising population will soon make it the 5th largest economy in the world. The country is seeing a shift in working models, with the gig economy becoming an attractive way for millennials to make a living. In fact, over 300 million businesses around the world are sourcing Indian workers, with its GDP set to come in at over 4.22 trillion US dollars.
India: Gross domestic product (GDP) in current prices from 2012 to 2022 (in billion U.S. dollars)
Trending in India
The gig culture and the popularity of online marketplaces has skyrocketed in India over recent years, with businesses and workers jumping into careers that allow for more flexibility, options, and a better work-life balance.
According to Helma Kusuma, the Country Manager for India, Indonesia, Malaysia, Pakistan, and Bangladesh on Freelancer.com, India has the potential to become the top freelancing and crowdsourcing hub in Asia, if not the world.
Take Flipkart, for example, which is one of India’s largest online marketplaces. In 2017 alone, it brought in $3 billion USD in revenue (199 billion INR) and had raised $1.4 billion USD (101.8 billion INR) from Chinese internet firm Tencent, eBay, and Microsoft by April 2017.
It’s been over 25 years since Australia’s last recession, and the country just keeps on thriving.
According to London’s Centre for Economics and Business Research, it will become the 11th largest economy by 2026 thanks to a growing population of skilled workers and the evolution of the digital world.
At the moment it sits at spot number 14, but a healthy and consistent population growth is set to bump it up a few places.
“Strong population growth is a key driver of Australia’s world record of 26-plus years of GDP growth without recession,” says George Tharenou, an Economist at UBS. There has also been a surge of temporary migrants which has further increased the population growth, something Australians refer to as the “people boom.”
Trending in Australia
In 2016, Australia made the list of billion-dollar direct selling markets, and 2017 saw that continue with annual retail sales of $189.6 billion USD (267.4 bill AUD).
According to Direct Selling Australia (DSA), there are around 641,000 independent sales people in Australia, 74% of which are women.
But it’s not just direct sales that is growing rapidly; the online marketplace industry is seeing huge growth thanks to several recent developments. These include the Amazon Marketplace arriving on the scene in 2017 to compete with eBay – which dominated the industry at the time – and Catch.com.au, another big player that launched a marketplace in June 2016.
The Vietnamese government is directly involved in economic decision making.
On top of that, the economy is thought to become one of the fastest growing emerging markets in the world by 2020 with a GDP of $436 billion USD despite currently being ranked as the 49th largest economy in the world at the moment.
Based off this estimate, it will be 70% the size of the UK economy by 2040. This has been helped by Vietnam joining the World Trade Organization back in 2007 which increased its involvement in the international market.
The Vietnamese government has also recently decided to take part in the trade liberalization among Pacific countries by signing the Trans-Pacific Partnership.
Trending in Vietnam
Vietnam is currently ranked 5th in the world for its entrepreneurship. This is because 13.3% of its population is self-employed – a number that, historically, would have been exaggerated thanks to the street stalls that the country is known for.
However, the number is now increasing due to the rising gig economy.
Minnesotan talent solutions group Manpower Group notes that, in 2017, 43% of Vietnam’s workforce could be considered informal, associating the high number to the rapidly growing gig economy and the country’s reputation as an emerging market for skilled gig workers. More growth is expected in the coming years, making Vietnam a very likely candidate for the first APAC market to cross the 50% threshold.
Indonesia is experiencing remarkable economic growth.
It’s currently the 16th largest economy in the world and, according to the World Bank’s March 2018 Indonesia Economic Quarterly, maintained strong growth throughout 2017. This is due, in part, to the vast improvements in their global trade, net exports, and investments.
Frederico Gil Sander, the Lead Economist for the World Bank in Indonesia, said that the country could spend more effectively in education and other priority areas such as infrastructure, health, and social assistance to continue to support inclusive growth.
Trending in Indonesia
Those who regularly travel to Indonesia tend to use on-demand ride hailing services like Go-Jek, Grab, and Uber, three of the most established businesses in the country’s gig economy.
The ride hailing market is huge in this part of the world and continues to show huge potential for growth. In fact, revenue is expected to hit a mammoth annual growth rate of 16%, which will result in a market volume of $288 million USD by 2022.
Direct selling is set to become a hot industry this year, too. Back in 2014, it joined the ranks of billion-dollar markets with $1.07 billion USD in sales. According to industry expert Asenshia, Indonesia has the perfect economic environment for direct selling to thrive in. This is for several reasons: firstly, it has a large population (261 million people, to be precise); secondly, it has a young population; and thirdly, it has unique geographic conditions (18,307 islands, to be precise).
If you’re curious about establishing your business in these four markets, chat with us to learn how you can start making payouts in India, Australia, Vietnam, and Indonesia.