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Brazil has long been known as the site for the joyous and colorful carnaval. When thinking of russia, perhaps the Winter palace built by the great tsars comes to mind. india and china are known as homes to two of the seven wonders of the modern world, the taj Mahal and great Wall, respectively. and the beautiful and diverse geography of south africa has made the country a popular tourist destination.

But to the investor, these nations are recognised for their growing power and international influence. Word of their clout is spreading – placing Brazil, russia, india, china and south africa, commonly referred to as Brics, in the driver’s seat for global growth.

BRICS: HEXAGON’S FOOTPRINT IN FIvE EMERGING ECONOMIES by Stephanie Johnson

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Bric. The term was coined nearly 12 years ago by Goldman Sachs asset manager Jim O’Neill in the economic report “Building Better Global Economic BRICs.” The report predicted that if the original four BRIC countries – Brazil, Russia, India and China – continued their rates of growth, they would become a much bigger part of the world economy within a decade, and were therefore deemed emerging markets. South Africa was added to the list in 2010 to form the current term BRICS.

What defines an emerging market? Emerging economies are expected to grow two to three times faster than developed nations like the United States, according to International Monetary Fund estimates. These nations are distinguished from other promising emerging markets by their demographic and economic potential to rank among the world’s largest and most influential economies in the 21st century. Together, BRICS comprise more than 2.8 billion people, or 40 per cent of the world’s population, cover more than a quarter of the world’s land area over three continents, and account for more than 25 per cent of global GDP.

For this reason, Hexagon leaders are hoping to increase their footprint in the BRICS markets. While the majority of Hexagon’s revenue comes from mature markets, the revenue from emerging markets is growing much faster.

“The BRICS markets are changing dynamically year on year, and we believe that process is expected to continue,” said Claudio Simão, president of Hexagon Solutions. “BRICS is a priority for Hexagon Solutions, and our goal is to provide technologies to meet these nations’ challenges.”

“To be successful in global business, you need a truly global organisation,” said Juergen Dold, president of Hexagon Geosystems. “We are not only present with local teams in all major mature markets, but also in every BRICS country. With this, we are becoming more local and much closer to our customers. In addition, each BRICS country has a seat amongst our management team so we can assess the needs of emerging markets every time we meet.”

With significant oil and gas reserves, increased foreign

investment and high interest rates, these nations are generally gaining in international influence and affluence.

“Because we are part of such a global company with customers all over the world, we are strategically focused on the direction and location of our key accounts rather than on a specific region or country,” said Norbert Hanke, president of Hexagon Metrology.

Despite their regional differences, the BRICS countries share many of the same challenges. Because it is one of the few companies that represent all the markets they serve globally, Hexagon is capable of addressing many issues through its standard offerings. Its global positioning allows Hexagon to operate in many locations, which helps the company access and understand local concerns.

Being a part of the Hexagon global brand network provides additional benefits. For example, the combined power of Hexagon companies helps in emerging markets by providing synergy opportunities that may not have been possible before. There are excellent opportunities to share expertise and resources, particularly when establishing subsidiaries in foreign countries.

“I see benefits for our employees and our customers, of course, but also for our company,” said Hanke. “Working together with many different cultures, our employees benefit from a variety of positive work ethics. An open mind set, cooperation, thinking out of the box and international socialisation are part of the benefit.”

The real competitive advantage, Hexagon leaders add, is the diversity that comes with globalisation. This allows more focus on local customers and strengthens Hexagon against competitors. With global positioning, Hexagon can follow customer projects in every part of the world, with the guarantee of the same quality everywhere, while also improving products, innovation, creativity and product management.

The emergence of the BRICS nations has challenged industry experts to think smarter, and understanding how these markets will affect the world is crucial. Offerings from Hexagon Geospatial, Hexagon Metrology, Hexagon Solutions, Intergraph and Leica Geosystems will create the intelligence needed to stay one step ahead of the global shift. <

BRICS \’briks\

noun: Abbreviation of Brazil, Russia, India, China and South Africa, countries recognised as emerging markets

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