Emerging markets are nations with rapid growth in business activity and industrialization. Currently, there are more than 20 emerging markets in the world. However, economies of China and India are considered by far the largest. Emerging markets are not only centered in Asia, but also include South America and parts of Eastern Europe and Africa.
Over the last few years, interest of global technology providers in emerging markets has increased.This is because developed markets have witnessed slower than expected pace of growth. Emerging markets are being looked as the next engines of growth. These markets have huge consumption potential and their propensity to spend is increasing rapidly.
Given the universal interest in emerging markets, the question one needs to ask is what is required to succeed in these markets.
These markets are different from developed markets at multiple levels. The challenges in these markets can be captured under the following four categories:-
Product / Service Localization
Reaching the Customer- Challenge of Scale
Unique Price Performance Expectations
Extremely Successful Local Competitors
Given the above challenges, success in emerging markets will be achieved by firms that learn the ropes the fastest. Both India and China are home to R&D centers of a number of technology organizations. Initially, these R&D Centers were being leveraged as low-cost development centers. However, with the rapid growth in emerging markets, we are witnessing a lot of local market innovations from these centers.
Other than product localization, firms need to focus at localizing their go-to-market strategies for these markets. Global giants need to play an active role in helping these growth markets become technology enabled economies. They need to drive initiatives for technology adoption in these markets and localizing everything from their product pricing, messaging and support infrastructure to meet the unique needs of these markets.
Zinnov’s Market Expansion services are designed to help technology firms succeed in emerging markets through a unique combination of customer insights, ecosystem linkages and deep understanding of key tenets of success for emerging markets.
To know more about our point of views & services offerings,info@zinnov.com
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