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CW Bulletin is the e-newsletter supplement to CW magazine. Sent each month to all members, every issue of CW Bulletin presents articles, case studies and additional resources on timely topics in communication.


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Emerging Communication
Channels for Emerging Markets

by Harjiv Singh

The Internet has both liberated and complicated the role of global corporate communication. Anyone with Internet access, not just organizations with large marketing budgets, now has a global broadcast platform. Today companies can talk to a practically infinite range of customers—in any location—and those customers can talk back. Organizations that want to communicate globally should be aware of the new rules governing emerging communication channels in emerging markets. Companies that break these rules can suffer damage to their reputations; those that respect them can build loyalty and trust.

More people around the world have the power to publish and influence. And with the emergence of new economic forces led by the so-called BRIC nations—Brazil, Russia, India and China—more people also have the power to buy and produce products and services. By 2030, according to The Financial Express, it is quite possible that an additional two billion people will have joined the middle class, many of them in BRIC nations.

Learning how to communicate with BRIC customers has become an imperative for global companies. Taking the time to recognize the sociocultural context of each BRIC market will be the key to a successful communication program.

Emerging channels
Technology has enabled corporations to readily provide products and services to customers in BRIC nations and other countries around the world. But companies that rely on a one-size-fits-all communication strategy do so at their own risk.

There are two fundamental points that business communicators should consider before creating a strategy for any BRIC market.

The first is to recognize that the only commonality among the BRIC nations is their vast differences. They vary not only in terms of language and customs, but also in the way their populations consume media.

The second is that business communicators—particularly those from developed countries—must discard their preconceived notions about emerging markets and new media.

For example, far from being technology laggards, BRIC populations are actually more engaged online than some of their Western counterparts. According to Media Myths and Realities, a 2008 report by Ketchum Communications and the University of Southern California, “Consumers in the BRIC countries are tech-savvy, they are accessing more mobile media and deem media outlets to be more credible than do their U.S. counterparts.”

Mobile media consumption in BRIC nations is particularly high. According to eMarketer, by 2014, there will be approximately 212 million mobile subscribers in Brazil, 200 million in Russia, 853 million in India and 1.3 billion in China.

The following provides an overview of emerging communication channels in each BRIC nation.

Brazil
With a population of about 194 million, Brazil has the most Internet users in Latin America—72 million people according to internetworldstats.com. Virtually 100 percent of the population speaks Portuguese, and the country has a relatively high literacy rate of 88.6 percent. The 2009 edition of Media Myths and Realities revealed that 62 percent of Brazilians read national newspapers, although the same study the previous year found that more Brazilians view major network television news (85 percent) and their corresponding web sites (71 percent) than their local counterparts (68 percent for local news and 59 percent for local news web sites).

The 2008 report also revealed Brazilians to be new-media savvy with around 85 percent using search engines, 68 percent participating in social networking, and 59 percent sharing videos or logging onto a networking site. The 2009 study also revealed that 52 percent of Brazilians now read blogs.

The bottom line for communication in the Brazilian market is to create a balanced multipronged strategy as consumers consult both traditional and new media outlets in large numbers.

Russia
With an estimated 141 million people, Russia has a 99 percent literacy rate. Although Russian is the official language, more than 100 minority languages are also spoken.

The 2008 Media Myths and Realities study indicates that Russians still rely heavily on traditional media sources. Around 45 percent of Russians read national newspapers and 60 percent rely on local publications. A large majority of the population also turns to network and local TV news sources.

There are more the 45 million Internet users in Russia. Nevertheless, most Russians get their information from traditional media sources as opposed to social media, blogs and networking sites.

Business communicators who want to get their messages heard in Russia need to adopt a strategy that relies heavily on traditional media. Communicators should also keep in mind that Reporters Without Borders ranks Russia No. 153 on its Press Freedom Index. (In comparison, the U.S. and U.K. are both ranked No. 20 on this index.) Much of the Russian media is state-owned or has close government ties. The Kremlin’s political, economic and social agenda heavily influences news coverage, and communicators must tailor their messages accordingly.

India
At 1.2 billion people, India is nearly as populous as China. Although Hindi and English are the official languages, there are 16 other languages in addition to more than 800 dialects. Literacy, now at 61 percent, is on the rise, as is Internet usage. By late 2008, around 81 million Indians were online, about 7 percent of the population.

India’s traditional media is surging as well, with more than 62,000 newspapers in circulation and both private and government-run broadcast, cable and satellite stations commanding huge audiences.

To succeed in India, businesses must appreciate the vast local and regional differences in language, religion and culture. The English language media reaches less than five percent of India’s population. The regional and vernacular media continues to grow, with Foreign Policy magazine reporting at least 3,200 newspapers published in Hindi—more than three times the number of newspapers published in English.

China
China is the most populous nation at more than 1.3 billion with a literacy rate of 91 percent. Although Mandarin is the official language, there are more than 200 other languages spoken in China.

In China, the government controls the media. The country’s Press Freedom Index is ranked at No. 168. Although traditional media remain an important source of information, search engines are the most widely used media source, with 61 percent of the population relying on them according to the 2008 Media Myths and Realities study. New media usage is generally high in China, with 48 percent of the population viewing online video and 41 percent reading blogs. Not surprisingly, China has an estimated 384 million Internet users.

As Google recently learned, global brands seeking to communicate with consumers in China face a strict regulatory environment in regards to content. Business communicators must heed government guidelines regarding the distribution of information that may be politically or socially sensitive. Messaging and conversations through traditional media channels must also be similarly mindful of these regulations.

We can expect that the BRIC countries will, at least in certain areas, leapfrog ahead of the rest of the world in terms of technology and innovative approaches to commerce. Each market will forge its own path to meet the unique needs and aspirations of its people. As business communicators, it’s our responsibility to help our organizations better understand those needs and aspirations, and respond in a way that resonates.

 

Harjiv Singh is the co-founder and co-CEO of Gutenberg Communications, a global strategic communication firm. Prior to launching Gutenberg Communications, he worked at Edelman’s corporate-affairs practice, advising clients like GE, HSBC, Gemplus and UK Trade & Investment.