June 17th, 2011
04:41 AM GMT
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(CNN) – Small emerging markets may pay off better in the long term than the lofty BRICS.

That’s according to State Street Global Advisors, which reports that smaller emerging market economies outperformed the BRICs by a whopping 39% in the period from 1996 to March, 2011.

Investors focusing only on Brazil, Russia, India and China may be missing out.

Compared with developed economies, the numbers are even more stunning.

For example, when you look at retail sales of licensed merchandise, emerging markets registered a 22.7% increase from 2009 to 2010.

“The Licensing Letter,” an independent trade publication, also reports a 2.2% decline in retail sales of licensed merchandise globally for the same period, and a 4% drop in the United States and Canada.

So while others shrink, the EM’s just keep growing.

Indonesia is just one of the small emerging markets cited in recent small emerging market reports; Its growing consumer class and economic growth have been the focus of special coverage on World Business today all this week.

Check out our coverage to locate the hot-spots.



soundoff (15 Responses)
  1. Munib Khan

    Perhaps they did outperform on percentages, but you're ignoring volume. India and China together represent almost one third of the world's population; investors who ignore the BRICS do so at their own risk.

    June 17, 2011 at 5:47 am |
  2. a

    That's an artificial method that CNN is actually, for the second time, posting in the attempt scare investors from investing in the BRIC. No wonder it comes from State Street Global Advisors. Off course sales in the posted locations are higher, but let's look at the entire economical and socio-political context. Really good the skills Colleen is applying in her enphasis with a negative connotation, widely used in most of all CNN economy services about BRIC. Just type BRIC in the search above and you'll understand. However, this trick it is not persuasive enough to not convince investors from Austria to see opportunities in Russia and in Brazil. Let's just be fair and real. Nice try though.

    June 17, 2011 at 11:13 am |
  3. João da Costa

    What is actually the difference between BRICS and Emerging Markets either than of a loose definition? I would say that BRICS (=Brazil + India + China + South Africa) is just one part (dispersed by the continents to try to be wordwide representative) of the Emerging Markets. Interesting is the fact that some of the Emerging Markets outside the BRICS have more powerful economies than South Africa: for example, Indonesia and Argentina. So, is easy to see that they are also interesting for investors.

    June 17, 2011 at 12:06 pm |
  4. asdf

    Joao, the acronym is BRIC, not BRICS. South Africa is not a member. Occasionally, Mexico and South Korea are mentioned when talking about the BRICs, but only the 4 (Brazil, Russia, Inda, China) are in the original thesis by Jim O'Neil and GS.

    June 17, 2011 at 1:49 pm |
  5. Maria

    So Indonesia's 6.1% growth in 2010 trumps Brazil's 7.5% growth? If you look at the numbers from just these two countries, you'll see Brazil is still the front runner (CIA World Fact Book). Brazil's purchasing power is over twice Indonesia's. This year's projected growth figures of 7% (Indonesia) and 5.5% (Brazil) still keep Brazil ahead of Indonesia's growth in terms of purchasing power dollars. Going by 2011 projections, Brazil's growth in dollars (not percentages) in purchasing power GDP will still be twice that of Indonesia's. Add to that the approaching World Cup and Olympic games coming to Brazil in the next 5 years. Indonesia's growth is wonderful, but you don't have knock down the BRICs just to get people to take notice.

    June 17, 2011 at 2:16 pm |
  6. OvaltineWithSpinach

    Actually, BRIC = Brazil_Russia_India_China, South Africa is attempting to join in, also with FMI candidacy. Indonesia is trying to join in too, however experts say the country doesn't fully comply.

    June 17, 2011 at 2:18 pm |
  7. OvaltineWithSpinach

    Is Joao from Portugal?

    June 17, 2011 at 2:20 pm |
  8. Yemale

    Colleen McEdwards,
    Either you don't know the number and percentage or you are trying to make people fool. Well, there are two numbers A=1.3 billion and B=0.4 billion if you say which one is large, obviously you say A>B in terms of number but 20% of A is larger than the 40% of B. I think you have got my point. Munib Khan is saying the same thing in the other way.

    June 17, 2011 at 2:52 pm |
  9. OvaltineWithSpinach

    Joao, just wake up! I wonder where you read your comics, you really don't it to you? FYI: Argentina is still a lame duck!

    June 17, 2011 at 8:10 pm |
  10. Kenan

    They sometimes add Turkey as well.

    June 19, 2011 at 3:07 am |
  11. ThatsNotTrue:[

    ...........How stupid would investors have to be to ignore BRIC-S? You have one third of the world's consumers in India and China while the BRIC is a group of emerging countries who didn't suffer from the global recession, curtesy of the US. The small markets would be good, for short term invesments, it may grow but big economies like the US or EU could destroy it, while the BRIC is a united force so there could be long term investment without western forces pushing the economy one way or another.
    Author, do your research.......or google....... =.=

    June 20, 2011 at 10:51 pm |
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  14. Hatice

    Glitter . Gold and Silver bugs are about to get their heads handed to them on a stinrelg platter ..with all the madness yesterday and not withstanding the idiot trade bidding up the mining shares in a mindless frenzy gold could barely muster a $30.00 gain to top at major resistance I sold 1/2 my holdings and now am down to 5% of assets and looking to protect that.The only commodity group to hold today is one that actually has a use, is needed by everyone and is not replaceable any time soon ..Got Energy?

    November 3, 2012 at 11:33 am |

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