The quest for new sources of growth has continued to gather momentum with growing economic changes, emerging markets have also attracted strong interest because they are endowed with high economic growth rates and evolving consumers. Like any market, they also produce great opportunities but come with great challenges that need to be considered and planned for. This blog focuses on the following aspects concerning the subject of market research in emerging markets:
Understanding Emerging Markets
Developing countries are known for their transitional economy having high growth rate, High percentage of the population lives in urban area, and middle class population is increasing significantly. Countries in South Asia or Latin America and parts of Eastern Europe are ideal examples. These markets are characterized by: –
- Growing Consumer Base: An expanding communication sector especially the middle class with an improved purchasing power.1
- Some emerging markets have been benefiting from shifts of global supply chains away from China.1
- Technological Adoption: Mobile usage among consumers is high and they have adopted digital solutions as consumers in this region are relatively young.
- Regulatory Changes: Dynamic market entry related legislations that either promote or deter competition.
Opportunities in Emerging Markets
- Untapped Consumer Potential
New economies might be full of potential client niches. The consumers have higher disposal income and this has made them embrace new products and services which provides a business the window to introduce innovations meeting local demand.2
- Economic Growth
Several emerging economies have lately recorded high growth rates, meaning more demands for goods and services. 2
- Market Diversification
Coverage into new economies offers companies a new frontier to invest in thereby minimizing their over-concentration in marketed economies.
- Lower Competition
The level of competition is comparatively low in many of these emerging markets than in developed zones. It has the advantage of providing companies with the opportunity to create well-connected networks as well as to brand themselves before the market gets saturated.
- Innovation and Adaptation
This outlook is very good for the business since developing markets are always flexible and ready to adopt new products and services.
- Growth in E-commerce
E-commerce is advancing at an astonishing pace and consumers in emerging markets are also adapting to this shift. Internet connection has advanced, and there are many mobile payment solutions that means that the business can access the consumers via digital platforms.
- Partnership Opportunities
There is a great advantage in seeking the support of local players; this involves local firms, NGOs and other influential players whom can offer valuable insights in the market and contribute to an easier entry into the market. Local partners provide knowledge about the specific market, about laws and restrictions, and cultural environment peculiarities.
Challenges in Emerging Markets
- Cultural Differences
It is essential to comprehend the customers and their requisite of the local area. Misinterpretations can result in unsuccessful advertising campaigns. It indicates that companies should make extensive survey and analysis of cultural factors in order to make their products appealing to the target clients.
- Data Accessibility and Reliability
It is even difficult to obtain accurate and up-to-date database concerning market demands in the emerging markets. Some countries may not have a complete database, or may need to employ non-traditional methods to gather information like using the social media site or using focus group.
- Regulatory Environment
It can be cumbersome at times influence by the ever changing laws and regulations that govern the market. There is always a risk that may occur from uncomplimentary trade barriers, odd regulatory measures or failure to meet certain compliance standards with respect to the local industry.
- Infrastructure Limitations
Some complications bear risks and working upon such projects may involve logistical complications due to insufficient infrastructure. Lack of adequate infrastructure such as transportation and distribution facilities means that actually getting the products to consumers may be almost impossible.
- Economic Volatility
New economically emerging countries can be vulnerable to changes in economic rhythms, political volatility and relevant currency. Organizations are therefore forced to undertake risk analysis and come up with risk mitigation strategies in case of a disaster.2
Market Research in India
- Market research in India covers major areas including the consumer products and markets, commercial and industrial sectors, demographic trends and consumer’s habits in the Indian & global market.
- It is one of the fastest growing industry having revenue of approximately USD 3 billion in 2023.
- The market research industry of India is on the rise and detailed information and analysis for almost any type of sector is easily accessible.
Strategies for Successful Market Research
To succeed in emerging markets, organization should thus adopt the following management strategies:
- Local Expertise
Local market researchers should be hired or local market research agency should be approached as they will be able to give an insight into the consumers and markets.
- Mixed-Methods Research
Qualitative and quantitative studies may be used to provide a two-dimensional perspective of the market. When it comes to qualitative research quantitative data from focus groups, interviews, and surveys can be useful.
- Pilot Testing
Field trials in certain areas can further marketer’s understanding of consumer acceptance of the products before undertaking massive marketing campaigns.
- Leverage Technology
Technology is revolutionizing the conducting of market research studies. In emerging markets, popular technologies like artificial intelligence and big data, mobile surveys will also offer much more insights of consumer behaviors and trends. They integrate complex analysis as they are capable of sorting large mass of data within short duration of time and pick out features that perhaps, human research might not easily get. Online surveys and other digital tools enable researchers to collect information in real-time; this approach will enable the identification of useful insights from a wide and diverse group of consumers.
- Continuous Monitoring
Given the activities and trends of emerging markets, their constant monitoring is necessary. It also shows how new topics within the research process can act as a response to consumers’ expectations alterations and fluctuations in the market.
Conclusion
In conclusion, emerging markets offer numerous opportunities to companies that are interested in globalization. Nonetheless, offered opportunities are accompanied by certain difficulties that require careful assessment of marketing environments. Using this knowledge and adapting technology in general as a competitive weapon, firms can enter these markets and sustain themselves in the long run. With the changing global economy, any candidate willing to make the right investment on effective market research will surely be well placed to succeed in this new exciting frontier of emerging market.
References: –
- Deloitte
- International Monetary Fund- https://www.imf.org/external/pubs/ft/fandd/2021/06/the-future-of-emerging-markets-duttagupta-and-pazarbasioglu.htm
