Entering new emerging markets can be a risky move – it takes a lot of resources, time and investment. With so much at risk, it’s easier to stick to what you know. However, with estimations showing that by 2025 the global consuming class will grow by 75% to a total of 4.2 billion people, can you afford to stay behind?
We’ve put together 4 points to consider when expanding into new markets. Follow the checklist below before entering a foreign market and nothing should stand in your way.
1. Adapt your products and services to local preferences
Do your due diligence before targeting markets outside of your own country’s borders. Cultural and social differences, as well as economic forces, can and will ruin your chances of becoming successful abroad. You need to know the market you’re targeting in depth before entering.
2. Localise your marketing strategy
Being global means being local to a multiple degree. One message won’t be right for all and trying to use a blanket approach won’t generate the enthusiasm or loyalty you’ll need to build to expand into emerging markets.
3. Know and comply with local legislation
Every new emerging market you move into will have its own local legislation. Don’t ruin your chances at expansion before you’ve even started – make sure you carry out in-depth research and are fully prepared.
4. Provide cross-border payments in local currencies and with local popular payment methods
Offer the right mix of cards and APMs (Alternative Payment Methods) to appeal to both a wider audience and the local market. As well as other methods, eWallets are amongst the most popular alternative payment methods on a global level, allowing consumers to complete transactions in their own currency. Make sure you offer the preferred payment methods in the country you’re targeting to maximise your chances of succeeding.
The emerging markets are home to 85% of the global population, so the potential for growth is vast. There’s a lot to consider when entering new markets but do consider the tips above to get it right and the benefits will be rewarding.