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  • Published 25/08/2014
Finding the right partner is the key to success in an emerging market, but equally important is making an assessment of the suitability of the product(s) to local market conditions. Before making all other preparations regarding the market entry, your company and local partner should address which products to introduce—in other words, what products are most suited to local market conditions.

Disappointing market performance in growth markets can often be tracked back to overestimated market demand or purchasing power. Therefore, the toolbox addresses the need to discuss the suitability of the product portfolio in the target market jointly with the distributor before anything else is done.

 

Adjusting existing products to emerging markets  

Introducing existing products to emerging markets sometimes requires adjusting the sales approach, marketing material and packaging, and the degree of after-sales services and support to local expectations via the distributor. For example, for some consumer products, developing a smaller or simpler version is one way to adapt a product to better suit local purchasing power. In other cases, adjusting to local taste preferences can be key to successful market development. Discuss this openly with your distributor up front and discuss which products in your portfolio are most suitable to promote and also whether you need to adjust the sales approach. Sometimes small adjustments can be the difference between success and failure.

 

Developing new “mid-market” products to emerging markets  

If it turns out that the market for existing high-end and expensive products is limited, discuss if a mid-market product could be jointly developed in the longer run. Developing a mid-market product typically involves stripping functionalities in the product or developing a more affordable product with a shorter life cycle. A dual-brand strategy can also be considered. The premium brand is combined with a mid-market product, jointly targeting different market segments through various sales channels and branding.

 

  • Discuss which products are suitable to local market conditions (prices, functionalities, quality level)
  • Introduce relevant products from the existing product portfolio
  • Long-term strategy: Discuss how new products can be developed jointly using the two companies’ strengths 

 

 

 




 

 

 

"To succeed, products need to be adjusted to China and Chinese people"

Mr. Zhuang, Realone Sports