Any investment professional that has spent even a small amount of time studying Emerging Markets knows that the key growth story in the developing world is the growth of the consumer class. There are dozens of studies and reports published by investment banks, consulting firms and fund companies showing us how literally billions of humans are moving from subsistence income levels to levels where they begin to consume more and better food, clothing, appliances, cars, etc. It’s a very good story. It’s a big story.
Across the developing world, local entrepreneurs are partnering with U.S. venture capital investors to pour their hearts, sweat and billions of dollars from U.S. institutional investors into ecommerce startups. In many cases – like Alibaba – these enterprises are enjoying tremendous success and creating significant value. And while Chinese companies have received the majority of the funding and attention thus far, the trend is spreading.
Kevin T. Carter is the Managing Partner of Big Tree Capital and Founder of EMQQ The Emerging Markets Internet & Ecommerce ETF (NYSE: EMQQ).