The number of so-called "emerging markets" internationally currently numbers around 100, including the "BRIC" countries (Brazil, Russia, India, China) as well as their Latin American, Eastern European, and Asian neighbors.

These countries are characterized by a growing middle class (defined as having disposable income to purchase homes, cars, and a variety of consumer goods), and younger consumers entering the workplace, starting families, and making up 50 to 60% of their populations. Marketing communications in these markets are dominated by traditional advertising such as television, and direct marketing is only now starting to make inroads. While budgets are much lower in these markets, marketers are starting to focus on the efficiency of their marketing spend. That can only be a good thing for direct marketing.

Challenges to Consider
The marketing communications landscapes in these markets look much as the US did in the 1960's. However, in addition to advertising, these markets have a great deal of Internet and mobile phone marketing. What they don't have is the infrastructure necessary for direct mail, mail order logistics, and other direct marketing services.

The use of the tools and techniques of direct marketing are nascent in these markets. They lack accurate mailing lists and data hygiene products, so direct is used for customer marketing more than for acquisition. In many of these markets, business-to-business (B2B) marketing is more established, and leads consumer direct marketing's (B2C's) growth. Large, multi-national corporations have been the early adaptors in both B2B and B2C, although local companies are starting to jump into the fray.

The concept of the "Post Office" is very different in these markets. China Post is one of the largest banks in the world. Their customers have one of the highest savings rates globally, and they physically go to their China Post branch to make remittances for utility bills. In addition, in the former communist-dominated countries, Russia and Eastern Europe, as well as China, the Post was the sole place one could subscribe to a magazine. Consequently, publishers often had no idea who their customers were, and even today, after liberalization, few magazine subscriber lists are on the market in these countries, at least legitimately.

Postal coverage in cities is often unreliable, while it simply doesn't exist in the countryside. In some countries, there are no address systems, and literally no addresses for mail to be delivered to. Basic postal services that we take for granted -- such as address standardization, bulk mailing rates, and national coverage -- simply aren't available. Home mailboxes often don't exist, and where they do, they are not the sole province of the country's postal service. In the US, the USPS has a monopoly on the mailbox; no other entity can legally put anything into it.

Unaddressed mail, a concept foreign to Americans, is popular with retailers and early stage direct mailers across the globe. Couriers often compete with the Post for even basic mail delivery services. While many Posts are going through liberalization (privatization), siphoning off their energy and attention, others are in the early stages of working with their stakeholders to develop a basket of products necessary for a healthy direct mail market place.

Testing? In many markets, there is no list coverage outside of the largest, first-tier cities. Mailings are sent to the whole list, so there is never a real test. Every mailing is a rollout. This is often necessitated by the fact that lists are "delivered" on labels, and not to the mailer, but to a trusted lettershop, so de-duping is not possible.