MINT – a term that refers to Mexico, Indonesia, Nigeria and Turkey – was coined by Fidelity Investments and popularised by the economist who came up with the acronym, BRIC – Jim O’Neill, of Goldman Sachs. MINT has a combined population of over 600 million people and its collective GDP in 2013 was more than $5,315 billion. According to the World Bank, this GDP will place all four in the global Top 15 by 2050. While many brands are looking to the BRIC economies for growth, it might be worth thinking MINT.
This is the theme of ‘Added Value Edits’, a monthly newsletter on strategic marketing thinking that works and disruptive innovation compiled from input provided by Added Value’s offices around the world.
Below are a few of the arguments Added Value puts up for asking global marketers to ‘Forget BRIC, think MINT’.
- Mexico in overdrive
Mexico hasn’t received as much attention as some of the BRIC economies, but it is slated by HSBC to become the world’s eighth-biggest economy by 2050. One of the largest drivers of this is Mexico’s bustling manufacturing sector, which is projected to add between $20 billion and $60 billion to Mexico’s economy through 2018. Among manufacturing industries, the fastest growing are the appliances industry along with the auto industry, which is predicted to overtake Brazil’s own for the first time since 2002.
- Indonesia: Asia’s Next Big Thing
Although there is a great deal of wealth disparity in this archipelago nation, there is a rapidly growing middle class that is forecast to double by 2020 to 141 million people. Indonesia has the fourth-biggest population in the world, and its economy is growing at a rate of 6.4% a year. Purchasing power, currently greater than $1 trillion GDP, is increasing as consumers are moving from the lower into the middle class, causing retail sales to boom in this consumer-driven economy.
- Nigeria Takes the Lead
With 170 Million inhabitants, Nigeria has always been considered Africa’s most populous country, but not necessarily the economically largest. In April, the Nigerian government rebased the country’s GDP to reveal a $510 billion GDP, which trumps South Africa’s $354 billion. Nigeria’s oil trade is a large part of this, but growing agriculture and retail industries play a large part in Nigeria’s economic strength, and represent a trend away from dependence on oil exports. With growth in these industries, Nigeria is expected to be one of the world’s top 20 economies by 2030.
- Turkey’s Automotive Gap
As the European car industry has been slightly stagnant, Turkey’s is rapidly growing. Turkey’s automotive industry is the 16th largest in the world, with 828,000 vehicles exported in 2012. However, Turkey has the lowest car density in all of Europe – 165 cars per 1000 people. This gap represents enormous opportunity for auto makers. As Turkey’s economy grows and purchasing power rises, car purchases will skyrocket.
- Emergent Electronics
Amongst these emerging markets, there is a clear trend toward an increase of consumer electronics usage. Turkey is leading the Middle East in mobile usage, with an 84% penetration rate. An extremely young demographic makes Turkey a tech-savvy nation, with the most active consumers in the world for mobile shopping. Indonesia has a similar story, also with an 84% penetration rate for mobile (2013) and a 24% rate for smartphones. In true emerging style, the demand for electronics has risen 30% annually.
- Social Media in Indonesia
Indonesia has proven to be a fertile ground for social media use. The country is one of the top five worldwide markets for social media, with the capital, Jakarta, deemed the world’s number one “Twitter city”. Accessibility to mobile devices and increasingly affordable data plans combined with a strong youthful demographic make social media a leading internet activity. Data shows that social media is accessed most often in the mornings and early evenings – times directly before or after working hours when Indonesians are stuck in “macet”, the infamous traffic in Jakarta.
- Telecommunications Are Key
Along with the opening of the Mexican oil market, Mexican president Enrique Pena Nieto signed a new law into action that loosens the grip of the telecommunications giant América Móvil. This law will “promote greater competition, more and better conditions, better coverage and service quality, as well as lower prices and costs”. Thriving telecommunications sectors are vital to long term growth of emerging economies, as Jim O’Neill suggested at a speech in Nigeria. Nigeria happens to have the world’s fastest growing telecommunications market, contributing to 8.5% of its GDP.