Incentives in the BRICS nations by Uwin Iwin Incentives
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Transcript of 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
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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%
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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.
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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
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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
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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.
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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
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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)
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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.
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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
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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
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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.
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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
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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
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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.
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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
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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
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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
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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
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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
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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.
© 2013 Copyright reserved Uwin Iwin Incentives Pty Ltd
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.
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Presented at:
www.incentivemarketing.org
Sources:International Trade Centre - www.intracen.org Daniel Tschudy – Cross cultural consultant www.tschudy.com
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