Chindia

1)Discuss demographic and an economic trend related to China's power and its

impact on marketers in your country. Support your discussion of these trends

with statistics.

Currently, when the western part of the globe is facing the threat of entering into double-dip

recession, emerging part of the same is eager to contribute in overall economic growth of the

world. Popularly known as Brazil, Russia, India, China, and South Africa (BRICS) nations,

emerging economies can be seen as the next boosters for slowing economic activity.

Among these China and India are the prominent ones. These economies, collectively accounting

for more than 19% of the world GDP on Purchasing Power Parity (PPP) basis in 2010, are

expected to contribute over 40% of incremental GDP in the upcoming years. Considering an

average world GDP growth rate of 4%, and 10% and 8% GDP growths for China and India,

respectively, the share of the duo is expected to increase to over 21% of the global GDP in next

two years.

While calculating the expected contribution of India and China in upcoming years, the estimates

represent fairly optimistic view for emerging as well as developed nations. However, in a

scenario where developed economies may witness a slower than expected growth, these

economies may represent a share even larger than the one reflected above.

What makes these countries different from rest of the globe are their skilled and cheap

workforce, and consumption power.

Compared with a collective GDP contribution of just 19%, population residing in these countries

represented over 36.5% of the global manpower. Of this, China accounts for more than 19%

while India contributes the remaining 17% plus. Size of this manpower can be substantiated by

the fact that share of the country with the third largest population of the world remains just

below 4.5%. As a result, these economies are expected to continue holding a lion’s share in the

global workforce in several upcoming years...