White Papers

spaa-emerging-marketsEmerging Markets: Where is the growth in the spa and wellness industry?  What will the future hold for hospitality and spa enterprise?  How will this impact the overall makeup of wellness in the future?

Emerging Markets The IMF estimates reveal that emerging markets will account for 48% of the world gross domestic production (GDP), which is estimated at US$90,452 billion by 2016. The global economy may “turn a corner” next year with improvements in the U.S. and Europe, according to Avery Shenfeld, CIBC World Markets chief economist. BRIC Consumers V. Western Consumers BRIC is an acronym that refers to the economies of Brazil, Russia, India, and China, which are seen as major developing economies in the world. According to Forbes, “The general consensus is that the term was first prominently used in a Goldman Sachs report from 2003, which speculated that by 2050 these four economies would be wealthier than most of the current major economic powers.” In March 2012, South Africa appeared to join BRIC, which thus became BRICS. At that time, Brazil, Russia, India, China and South Africa met in India to discuss the formation of a development bank to pool resources. At that point, the BRIC countries were responsible for about 18% of the world’s Gross Domestic Product and were home to 40% of the earth’s population. It would appear that Mexico (part of BRIMC) and South Korea (part of BRICK) was not included in the discussion. Beauty consumers in the BRIC countries are very different to Westerners, and so the key to brand success will rely on their ability and efforts to thoroughly research the different consumers and dynamics in each market, plus any regional differences. One company doing just that is Beiersdorf-owned Nivea and in a recent interview with cosmeticdesigneurope.com, Head of Product Development Dr. Martin Rudolph said: “There are similarities as well as specific differences in consumer attitudes and behavior in these regions. For example, it is important to consider the very different beauty habits in Brazil, the masculinity in Russia, as well as face care regimes in Asia.”

View the SPAA White Paper on Emerging Markets.

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