by Laurel Delaney, Founder and President of GlobeTrade (http://www.globetrade.com).
There is very little doubt that the rapidly developing economies, such as Latin America, China and India, are well on their way to becoming the most important growth markets of the future. Much of this growth is due to the fast development of the Internet and mobile technologies. Here are four ways to tap into this gold mine of a market.
1. Develop new applications for existing products that can be offered to new buyers in new markets.
Perhaps a favorite pair of skinny jeans could be made better or more quickly if you changed the composition of the fabric. Or maybe reconfiguring an existing headlamp might be perfect for improving coal mining safety in Turkey.
Before you set out to do business in a particular country, ask some basic questions. How do the people there like to spend their time? What are their favorite gadgets? How do they clean their homes or cars? How are their clothes laundered? Do they have pets?
If you can’t travel there, gather information via the Internet to give you some answers. There are plenty of resources available.
Also, don’t forget to ask yourself: What other applications is my product or service good for? Take kilim rugs as an example. They don’t have to be used only as rugs. They can also be used effectively in the fabrication of loafers and handbags.
Market coverage can pollinate over from the rug industry into the women’s apparel industry to reach new and appropriate buyers and to broaden the scope of your business activities.
Think about breaking new ground or going beyond the everyday uses of things and you’ll be astonished at the opportunities that arise.
2. Find a niche (sweet spot).
If you are currently selling business to business (B2B), maybe it’s time to consider selling consumer to consumer (C2C). There’s more work involved as you strategize how to handle the fulfillment and payments on each individual order, but getting the process right at the outset will allow you to open up to selling to more than 7 billion people online. Of that staggering number, remember, a majority of the people in rapidly developing countries are still poor in comparison to the consumers in developed countries. Tailor products to meet the needs of this segment of the population and you will have a winning formula for global success.
3. Create an industry where none had existed before.
According to a Forbes article, “It is no accident that companies within a particular industry move in lock-step with one another. Companies in a single industry are forever bound by the type of product or service that they provide, and they are constantly competing with one another for market share, consumer acceptance and technological leadership in their particular sub-sectors.” Is that you? If so, the only work-around or way to break free is to create an industry where none had existed before. Think Apple with its iPhone or the Uber with its ride-sharing concept.
4. Determine growth opportunities based purely on location.
In McKinsey’s report, “LuxuryScope, Unleashing Fashion Growth City by City,” the company draws upon economic and socio-demographics for more than 2,600 cities around the world. The data drills down to the city level to predict growth and can be used by luxury brands to determine how to approach growth opportunities based on location. The interesting thing is that McKinsey’s report says that growth will extend beyond China and the other BRICS (Brazil, Russia, India, China and South Africa) to include what McKinsey defines as the Next 15. “These additional 11 countries are set to drive 80 percent of emerging market growth even though they only account for 25 percent of the global GDP,” the report states.
As you craft your new overseas market expansion plan, think critically about where you should be going next to achieve massive growth. Discover the power of adding these tips to your business development model and consider tapping into emerging markets to accelerate your company’s global growth.