Growing and Growing

In the past few years, many believed that the opportunity to capitalize on the U.S consumer market was not worth the effort. Marketers believed that the United States consumption rates were stagnant and that increased product marketing should be focused on developing nations. But, new developments have led to an expanded interest in marketing efforts in the United States.

The U.S has recently been named an "emerging market" by L'Oreal CEO, Jean Paul Agon. L'Oreal recognizes that the United States is their most profitable market, whereas the consumption growth rate in the BRIC countries are declining. For many years, large corporations believed that it would be most advantageous to capitalize on the developing markets in the BRIC countries. Though, now it seems as if increased competition and a thirst for market share is changing the way companies are focusing their marketing efforts.

The population growth in the U.S has led to the greater interest in investing in marketing efforts, as companies notice that a larger market will eventually lead to larger consumption, and greater profits. Whereas GDP in developing markets, such as Brazil, Russia, India, and China has slowed, in the United States, growth is at 2.2%.

The implications of the realizations that the United States is a market that should be further capitalized on led to the possibility of many companies, such as Walmart, to relocate their manufacturing plants. Walmart claims that they will $50 billion more made in the U.S merchandise.

Though the United States is a fully developed market, it is possible for corporations to take advantage of the population growth and growing GDP. It is important for companies to note that though markets may seem completely developed, there is still much opportunity.


Thoughts provoked from: http://adage.com/article/news/u-s-emerging-market/239848/