Incentives in the BRICS nations by Uwin Iwin Incentives

Incentives within the BRICS Nations

Presented by Debbie Ghillino

Incentive & Loyalty Strategist, Uwin Iwin Incentives

© 2013 Copyright reserved Uwin Iwin Incentives Pty Ltd

BRICS Nations: who are they?

Brazil

Russia

India

China

South Africa


Fast facts: BRICS Nations

• BRICS countries occupy 30% of the world

• They’re home to 43% of the world’s population

• BRICS account for 17% of world trade

• BRICS’ combined foreign reserves are estimated at $4.4 trillion

• BRICS counts for one-fifth of global GDP, estimated at $13.7 trillion

• BRICS’ contribution to global economic growth over the last decade has reached 50%


Brazil

With a GDP of $2.425 trillion in 2012, Brazil is the world's seventh largest economy. It holds only a modest place in world trade activity, however, and experienced sluggish growth of one percent last year.

The Brazilian economy, with its population of 198 million people, is forecast to grow 3.5% this year.


Brazil – top incentive tips

Technology is king – web/Mobi/SMS/online claiming Catalogue phasing out – open loop single use (3 months) gift card preferred option No maximum upload known of When presenting – very visual with all comms & design up front Lifestyle experiences/Travel tips – very large uptake


Key tools for working with Brazilians

Elegant and optimistic approach when dealing and negotiating Use and apply emotions and personality Samba, Copacabana and football are very relevant values Affection and eye contact are required Flexibility required for time management and events planning


Russia

Ranking ninth on the list of the world's biggest economies, Russia accumulated a GDP of $1.953bn in 2012, boosted mainly by its gas exports, making it the world's eighth largest exporter.

With a population of 141.9 million, Russia has managed to fend off much of the financial fallout caused by the European debt crisis, and despite experiencing a slight slow-down in economic growth in 2012, its economy is forecast to jump 3.7% in 2013.


Russia – top incentive tips

High end merchandise rewards desirable Clear, defined rules necessary – some mistrust in ‘free’ rewards Mobile and online programme audiences not prolific Data verification required – high fraud


http://www.google.co.za/url?sa=i&source=images&cd=&cad=rja&docid=kp3yh2VbDEMIAM&tbnid=oPmQVHrSTm8FEM:&ved=&url=http://seeker401.wordpress.com/2010/10/12/coldest-winter-in-1000-years-on-its-way-to-russia/&ei=9xLwUa6dBaev7QbIlYCYDQ&psig=AFQjCNHw8IQj0k2tugMm3wfLP-l1FZ7Dig&ust=1374774391148602

Key tools for working with Russians

Clear and direct language when dealing and negotiating Motherland and Father Frost are deep-rooted values Connections, networks and hierarchies to build business Closed ties, long buy-in period Rough negotiations – rough socialising (drinking)


http://www.google.co.za/url?sa=i&rct=j&q=russia&source=images&cd=&cad=rja&docid=mhwTehl1L46-nM&tbnid=8oN5eLCvQMt6nM:&ved=0CAUQjRw&url=http://www.dreamgrow.com/social-media-in-russia/&ei=lhLwUeveC-Km0QXiJw&bvm=bv.49641647,d.ZGU&psig=AFQjCNHtV_7q8uuxmV4KJA6ZIbwEiAG67A&ust=1374774269181269

India

Despite its population of 1.22 billion, India remains a smaller player among the world's economies, falling into a 10th place with a GDP worth $1.946 trillion.

After shrinking from 7.9% to 4.5% growth between 2011 and 2012, India's economy is expected to expand by 5.9% this year.


http://www.google.co.za/url?sa=i&rct=j&q=india&source=images&cd=&cad=rja&docid=rZy7OsQk5Ww27M&tbnid=9ijBM_BsFZrT7M:&ved=0CAUQjRw&url=http://www.telegraph.co.uk/women/womens-life/9800461/Fifth-of-women-in-India-and-Egypt-think-internet-use-is-inappropriate.html&ei=JBLwUcvOMaWO0AWD7oHICg&bvm=bv.49641647,d.ZGU&psig=AFQjCNGVLHoqHRW8Eb12Vk0_a-9iKuUKVg&ust=1374774111517233

India – top incentive tips

Patience with selling process Relationships are key High end catalogue items desirable Mobile money & reloadable cards king Reputation means everything – established credibility required


http://www.google.co.za/imgres?imgurl&imgrefurl=http://tourist-places.globalvisiontours.com/2012/11/taj-mahal-tour.html&h=0&w=0&sz=1&tbnid=a_ePrtvGovScaM&tbnh=194&tbnw=259&prev=/search?q=india&tbm=isch&tbo=u&zoom=1&q=india&docid=zzOp8lznTpt1vM&hl=en&ei=ThLwUavMOaqV0QX4u4DwCw&ved=0CAIQsCU

Key tools for working with Indians

Know-how and expertise must be visual when dealing and negotiating Consider complexity and cultural diversity Respect religious backgrounds More haste, less speed


http://www.google.co.za/url?sa=i&rct=j&q=india&source=images&cd=&cad=rja&docid=KMcSc0y89mCBaM&tbnid=Wm3fl__QqRrSMM:&ved=0CAUQjRw&url=http://www.intstudy.com/none/none/asia/india/why-study-in-india&ei=9xHwUaziEoWR0AWdvoHoAg&bvm=bv.49641647,d.ZGU&psig=AFQjCNGVLHoqHRW8Eb12Vk0_a-9iKuUKVg&ust=1374774111517233

China

Boasting the world's second largest economy - trailing only the United States - economic power-house China has become the informal leader of the group.

With a gross domestic product (GDP) of $8.25 trillion in 2012, the IMF estimates that the Chinese economy will climb by a whopping 8.2 percent in 2013. (looking shaky)In 2011, it clinched the No. 1 spot as exporter of goods.It remains the globe's most-populated country, with 1.35 billion inhabitants.


China – top incentive tips

Take into account varying generational needs Be prepared to expect different measures Disconnection between cities and outlying districts Ripe for mobile money solutions


http://www.google.co.za/url?sa=i&rct=j&q=china&source=images&cd=&cad=rja&docid=bIzfO4vEq0aSNM&tbnid=OLpzx5f4ejunvM:&ved=0CAUQjRw&url=http://www.telegraph.co.uk/finance/personalfinance/investing/9937056/Investing-in-China-the-pros-and-cons.html&ei=oRHwUdqhOdSl0wWD54GQBw&bvm=bv.49641647,d.ZGU&psig=AFQjCNHKbUxAW4C4npJLI8zglgPmOJzQ7A&ust=1374773978018591

Key tools for working with Chinese

Respect and apply seniority-factor in dealings and negotiations Age and experience before energy and initiatives Patience and connection building – long buying cycle Quantity before Quality, unfortunately Flexibility and harmony


South Africa

Smallest of the Brics economies is South Africa. Placed 41st amongst world exporters, the country has a GDP of $390 billion and a population of 51.4 million.

Having suffered amid the global financial down-turn, South Africa's economy is forecast to grow by 2.8% this year and by 4.1% next year.


South Africa - top tips

Provide fast, instant rewards Talk to daily needs Fun, relevant, comms Constantly evolving programmes Aligned with first world technology & solutions Springboard into rest of Africa


http://www.google.co.za/url?sa=i&rct=j&q=south+africa&source=images&cd=&cad=rja&docid=jMVUlKGrk7frTM&tbnid=On7EHjLQC1fG5M:&ved=0CAUQjRw&url=http://www.soccerphile.com/south-africa-travel-guide&ei=KRHwUdu6KojC0QXQ74CYDQ&bvm=bv.49641647,d.ZGU&psig=AFQjCNFbv-jl9ApBl0fbKzTa-utAjncqYg&ust=1374773845960217

Key tools for working with South Africans

Traditional and neat approach when dealing and negotiating Avoid established-nations’ “know-it-all“ attitude Appreciate recent development as people and as economic power house Endorse and apply multi-cultural elements and opportunities Formal protocols/business style


Commonalities Large areas to consolidate with poor inter-regional infrastructures High motivation/low competence in terms of execution Huge divide between have/have not’s Technologically advanced in major cities Mobi sites used more than traditional websites Growing populations with increasing wealth and access to technology

Different but the same


Brazil Russia India China South AfricaIncentive strengths

Growth marketVibrant cultureClients willing to invest

Starting to recognise potentialLike to reward with high values

Semi-est marketLarge bases from low performance ratesHigh take up

Unique requirementsChallenge norms

Est marketFast reward demandsHigh online take up

Incentive weaknesses

FraudParticipant lack of assertivenessunclear guidelines

Tough negotiators – who you knowClosed ideas re reward types

High fraudLow online levelHigh staff churnLow margins

Price sensitiveLow engagementCounterfeit reward culture

Catalogue exitLack of best practice sharing

Incentive oppor-tunities

Social status consciousAspirational baseCulture recognises achievementOnline portals

Great networking culture – one in, all inWestern cultural aspirations

Instant rewardsReloadable cardsCall centre client & channel opportunities

New ideas welcomedAudiences openReward & Rec prominent

Apps for claimsUnbanked marketsVirtual rewards

Incentive threats

Low adherenceComplicated measuresClients unwilling to let pro’s take charge

Rough negotiatorsNeed to be convinced of long term benefits

Staff retentionClient buying signalsNegotiating cultureHigh ROI demands

Culturally difficult to connectGen/Traditional differences

Entitled audienceCash solutions popularEconomic crunch

SWOT per country


Incentive matrixBrazil Russia India China South Africa

Channel Incentives

X X X X X

Loyalty X X X X X

Reward & Recognition

X X X X X

Online solution

X X X X X

Merchandise rewards

X X X X X

Gift card rewards

X X X X X

Travel rewards X X X X X

Service offerings per country


About Debbie Ghillino

Debbie Ghillino has worked in the incentive industry since 1996. She began her career in South Africa before heading to the UK, where she worked in the incentive industry for 7 years, with Euro RSCG Skybridge in London on the Ford and Vodafone accounts. She moved on to co-managing a Channel Marketing Agency, running Channel Marketing incentives and other marketing initiatives for ‘3’ the dedicated 3G mobile operator in the UK. Upon her return to South Africa in 2007, she began working with Uwin Iwin. Debbie specialises in the strategy, measurement, communication and participant management of online rewards, and has a passion for rewarding people for their efforts.


Who we are

Uwin Iwin Incentives is a leading incentive and performance improvement company specializing in customized sales incentives, sales conferences and events, as well as corporate travel incentives.

• Our cloud based technology allows for seamless integration and easy web-based access requiring no additional infrastructure outlays.

• Our team of experienced incentive specialists will customize an incentive to suit your environment to ensure maximum return on objectives, investment and efforts.

Our footprint extends throughout South Africa with the head office in Bryanston, Johannesburg.

International markets within Brazil, India, Middle East and Africa are serviced from the Uwin Iwin offices in Brazil, Kenya, India, Nigeria, Mauritius and the UAE.

© Copyright reserved - Uwin Iwin Incentives Pty Ltd

Presented at:

www.incentivemarketing.org

Sources:International Trade Centre - www.intracen.org Daniel Tschudy – Cross cultural consultant www.tschudy.com


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Incentives in the BRICS nations by Uwin Iwin Incentives