Wednesday, 9 June 2010

Why demographics matter

The day of 7 Billion is expected to arrive in July 2012. In 1804 the world’s population was 1 Billion to reach 2 Billion it took 123 years, right now it takes about 12 years to add 1 Billion people to the planet. The good news for Internet shopkeepers is that Thomas Malthus prediction in 1798 that the world would run out of food in the 19th Century has not come true and there could be a lot more customers arriving in the shop shortly.

So how can demographics affect the way I do business? Developed countries have stable population and in the case of Europe a decline in population is expected soon. The world’s population growth will be concentrated in Africa, Asia and Latin America. Western companies need to start to understand that young people and new customers will come from these emerging markets.

By 2025, India is expected to have the largest population in the world. Ethiopia with 140m will have the 9th largest population in the world. Infrastructure, communications, medicines etc. all need supporting. So what’s your strategy for reaching the emerging marketplace?

If you don't have one, isn’t it time your company committed to working one out?