Today, many multinational corporations need help developing scalable products in emerging markets.
According to Joshua Oguntade, companies aren’t informed reliably about customer preferences, so they can tailor products to specific needs and increase people’s willingness to pay.
To him, because of all these voids, many multinational companies have fared poorly in developing countries.
“All the anecdotal evidence suggests that since the 1990s, American corporations have performed better in their home environments than in foreign countries, especially in emerging markets. Unsurprisingly, many CEOs are wary of emerging markets and prefer investing in developed nations (Harvard Business Review, 2005).
“Emerging markets represent lucrative new markets but also present challenges, including lower-income customers, poor infrastructure and poor service availability. It is hard to resist the pull of emerging markets. Given the immense population in such countries, even the small percentage of the total population that can be considered ‘middle class’ represents huge markets for companies in developed countries.
” And this new emerging-market middle class is only growing. Succeeding in such markets, however, is a challenge. Even middle-class customers have much lower incomes than in more developed economies. These customers are further ‘resource-constrained’ by poor public and private infrastructure and poor service availability. Emerging markets are expected to provide nearly 75% of the world’s growth in the foreseeable future (Johnson, 2010). To succeed in these settings, companies must move beyond the one-size-fits-all mentality, embracing innovation, adaptability, and user-focused approaches that genuinely resonate with local needs.”
Understanding the Market Needs
Each market has unique preferences. Understanding these preferences can help companies create offerings that resonate with local tastes. For example, multinational companies like Unilever have tailored their products to fit local customs and practices. This approach ensures higher acceptance and satisfaction among consumers. Serving most emerging market consumers will often require developers to design products tailored to the special needs of emerging market customers, often priced far below their offerings in developed markets. This involves rethinking core functionalities, simplifying interfaces, and adapting business models to fit local spending habits. Roughly three-quarters of the executives surveyed by Deloitte magazine on ‘innovation in emerging markets’ said that their company offered very different product features in emerging markets, anticipating a substantial increase in revenues over the next three years, compared to half of those who said the product features were the same in emerging markets. Tailored products also were more likely to be associated with higher margins. Fifty-four (54) per cent of companies that achieved higher margins in emerging markets than their home market said they offered significantly different product features, compared to 43 per cent of companies where the gross margins were the same or lower than at home. Product leaders who develop new product offerings that are key to the unique needs of individual emerging markets will be likely to achieve the most tremendous success.
Building a Product That Scales
To build a product that scales successfully in emerging markets, it’s crucial to begin with a deep, well-rounded understanding of the local landscape. Emerging markets are highly diverse, encompassing a range of economic conditions, infrastructure levels, and consumer behaviours. Conduct comprehensive market research to gain a thorough understanding of these variables. This data balance allows companies to identify segments with high potential and better gauge which features and price points will resonate. Utilise quantitative data (such as market size and growth rates) and qualitative insights (such as consumer attitudes and purchasing motivations). To uncover unmet needs and preferences, engage local market experts and potential customers through surveys, focus groups, and interviews. These direct interactions reveal nuances in unmet needs, preferences, and pain points that can be overlooked in desk research. For example, local insights might show that a mobile application requires offline functionality due to inconsistent internet access or that specific payment methods are preferred over others. Validating the product through this process builds credibility with local users and ensures that the solution genuinely addresses real needs, increasing the likelihood of adoption. This approach will help you identify market segments with the highest potential and tailor your product accordingly.
Another critical component of scaling in emerging markets is affordability. Products must be accessible to a wide demographic, often necessitating a rethink of traditional pricing models. Many successful companies implement a “freemium” model or tiered pricing to provide users with accessible entry points while creating paths to upsell. For example, offering a basic version at little or no cost allows the product to build traction and familiarity, paving the way for monetisation as users perceive its value and local economies grow.
Localisation efforts also play a critical role in scaling. Beyond language translation, localisation should encompass adapting interfaces to match cultural norms, preferred icons, and design aesthetics. A product that resonates culturally will see faster adoption as users feel an immediate sense of relevance and ease with the interface. For instance, in a market where users prefer visual-based navigation, developers should prioritise image-heavy layouts and icons over text-heavy screens.
Navigating the landscape of emerging markets demands a blend of strategic foresight, agility, and a deep commitment to collaboration. This journey is as much about learning as it is about executing—listening to the market, iterating on feedback, and staying responsive to rapid shifts. Startups and established companies can unlock sustainable growth, build loyalty with local consumers, and make a lasting impact in these high-potential regions by focusing on these principles. With the right approach, companies can turn emerging market challenges into opportunities, driving innovation that meets the needs of millions and ultimately contributes to advancing the global digital economy.
With a proven track record of driving innovation in fintech, Joshua Oguntade has established himself as a versatile product leader. At Flutterwave, he managed compliance products, ensuring alignment with regulatory standards for top fintech players. He is currently the founder of Onboardly.