Emerging markets are nations with social and business activity in the process of rapid growth and industrialisation. Well, imagine you have prepared a detailed plan for your products for these emerging markets but do you know how customers will respond to it? And if you are not ready with these questions, you are at loss to your competitors.
You can learn alot about consumer preference in the developing world by looking at how retailers engage with shoppers. Consumer preference in western countries and in eastern countries are different. Sea food in China was accepted with great amusement while it failed miserably in Argentina, Mexico. Local retailers deal everyday with local customers and are good in understanding their customers choice and what offers will attract them. Retail shop is where most of the customers make decisions about buying. In America 55% of consumers make decisions inside stores while only 33% in Mexico.
To comprehend how these top local markets are emerging so pleasantly, research has been performed in a variety of retail stores dealing in a variety of products. Study has shown that despite several differences, they share certain problems same, and most of them are unknown to them.
In developed countries high income groups form the apex of the pyramid. So one can target a large base by simplifying product attributes to make it more adaptable to lower income groups. However the same strategy doesn’t work for developing countries where incomes don’t form a smooth transition. Emerging market favours essential commodities at a cheap price and of acceptable quality.
In developed countries consumers are more knowledgeable and are mostly used to complex products and well aware of customers rights while in emerging markets consumers are lacking these aspects and hence stores suffer huge losses because of lack of consumer awareness.
3. Market speed
In well developed countries products are a symbol of their status while these factors are not enough to make purchase in developing countries. Even packaging plays an important role in alluring customers in developed countries. Market demand is changing at a high speed as people are getting more aware and their average incomes are rising. Hence their demands are changing. With these technologies, issues are also arising. Canada, Hongkong are now offering IDs to decrease shopping hours.
Demographics factors get affected by :
Emerging market faces several challenging demands such as :
1. Marketing practices.
Adapting product according to its target customer. It’s a misconception that the high end products attract more customers. Let’s forget about the pyramidal model to reach a vast market. You just need to remove certain identifiable limitations that have limiting implications on your customers. Aiming at a low income group from the start is a good marketing approach. The telecommunication company JIO has offered 3 month free Jio services to its customers and now its market reach, everyone is aware of.
2. Inclining with consumer’s demand.
Cheap and best is what every customer dreams. Masala oats and cornflakes are offering its customers highly nutritious food at low price. Adding masala and dry fruits have improved their taste too.
3. Creating awareness
Make your store more than just a selling point by educating people about products, offers. Hire a salesperson in a frontline job to cater the questions of customers. Provide training to your salesperson so that they can achieve a high level of expertise to handle customers and educate them more effectively.
4. Win trust
Now companies are required to show their customers that company cares about its customers. Build trust with your customers and you will gain lifelong loyalty and affection. Responding well to consumers is important. It will make them at ease while purchasing. When a customer leaves the shop, customised sales messages can make customers feel secure.
5. Respond before time
Emerging markets are a great example highlighting the changing demands of customers for multinational companies. It can help them adapt to new technologies and remain competitive in the market.
Demand is something that keeps on changing and on a journey to understand today’s demand you have to keep learning from local markets, emerging companies to explore more in this field.