Though there are few differences in the upper income earners in emerging and domestic markets, emerging markets have much lower income customers in the middle and low earning tiers. Learn about why that creates a need for finer market segmentation.
- In India and Indonesia ride sharing companies…such as Uber, Hola, Go Jack, and others…do offer the usual economy…and premium transportation services.…Interestingly however, in these markets,…they also offer ride sharing on motor bikes,…as well as three wheeler auto rickshaws.…As the ride sharing example illustrates,…disparities in income and wealth are far more pronounced…in most emerging markets than in developed markets.…
Differences in buying power across the cities,…towns and villages in say China, India, and Brazil…are far greater than in say the US, Japan, or Germany.…Income is not the only dimension along…which extreme diversity is a defining feature…of the societies in a big emerging market.…Given their large geographic size, and vast populations,…each country is almost like a sub continent,…that each also exhibits very high diversity along multiple…dimensions, such as languages and dialects, climates,…religions, and cultural proclivities.…
Given this diversity, unless a company makes niche products…
Which emerging markets should you enter? How do you enter the targeted market? Do you partner with another company, or go it alone? How should you deal with the regulatory constraints that you might face? Anil and Haiyan address these questions, and more. They also outline some of the issues that arise once you have entered an emerging market, such as how to win out over local competitors, market to the bottom of the pyramid, and deal with the speed of fast-changing market dynamics.
- How emerging markets differ from developed markets
- Designing entry strategies
- Identifying the right beachhead
- Competing and succeeding within the market
- Cultivating and leveraging the local ecosystem
- Dealing with rapid changes in market dynamics
- Leveraging China and India as global platforms
- Building the leadership for emerging markets