By Taiwo Disu
Breaking into emerging markets presents both immense opportunities and unique challenges for businesses looking to expand their reach. With rapidly growing populations, increasing urbanization, and rising consumer demand, regions like West Africa offer fertile ground for businesses eager to scale. However, entering these markets requires a strategic approach that considers local nuances. Based on my experience launching several products across Nigeria and West Africa, here is a guide to navigating the complexities of new market penetration.
1. Understand the Market Dynamics
Before diving into any market, it is crucial to conduct extensive research on its socioeconomic environment, cultural preferences, consumer behaviour, and competitive landscape. Emerging markets are often highly dynamic, with consumers displaying distinct preferences that can differ even within a single country. For instance, in Nigeria, consumer preferences in Lagos might be vastly different from those in Kano or Port Harcourt.
Key questions to ask:
– What are the pain points your product can solve for consumers?
– What are the local purchasing habits?
– Who are the competitors, and what market gaps exist?
During my time at Oraimo, we quickly realized the importance of understanding consumer demands for affordable yet high-quality mobile accessories. With this insight, we tailored our product offerings to match the price sensitivity of our target audience while ensuring the durability that local consumers prioritized.
2. Leverage Local Partnerships
Collaboration with local players is critical for success in emerging markets. Local distributors, retailers, and influencers can help bridge the trust gap and provide valuable market access that would otherwise be difficult to achieve. Moreover, collaborating with local businesses can offer insights into customer needs, regulations, and market behaviour, further strengthening your strategy.
In my experience launching Oraimo’s products, we on-boarded over 300 dealers and 100 sub-dealers across 20 major markets in Nigeria. This extensive network allowed us to rapidly penetrate the market, increase brand visibility, and reach a broader audience in a short time frame. Additionally, we collaborated with local influencers such as 2face Idibia, whose endorsement resonated deeply with the Nigerian audience and reinforced our credibility.
3. Tailor Your Marketing Strategy to Local Contexts
Marketing a product in emerging markets requires adapting global strategies to local contexts. Campaigns that work in developed markets might not resonate in countries with different media consumption patterns, languages, or cultural values. For instance, in West Africa, a mix of digital, traditional, and experiential marketing tends to be highly effective.
When we launched Mara Wallet across Nigeria, Ghana, and Kenya, we employed a hybrid marketing approach. This included digital campaigns targeting tech-savvy youth, outdoor advertising for mass awareness, and experiential activations that allowed potential users to engage with the product first-hand. This blend helped us sign up over 4 million users within six months.
4. Consider Pricing and Distribution Strategies
Price sensitivity is often a defining characteristic of consumers in emerging markets. While premium products have a place, affordability tends to drive mass adoption. Striking the right balance between quality and cost is crucial for success.
During the Oraimo launch, we carefully designed a pricing strategy that aligned with local purchasing power while ensuring the perceived value of our products remained high. We also established an expansive retail network of over 400 stores, ensuring our products were easily accessible to consumers.
Beyond pricing, a robust distribution network is critical for penetrating hard-to-reach areas. In emerging markets, distribution can be challenging due to infrastructure limitations, so partnering with reliable local distributors and logistics providers is key to ensuring product availability.
5. Innovate and Adapt to Local Challenges
Emerging markets often come with infrastructure challenges such as unreliable power supply, poor internet connectivity, or inconsistent transportation systems. Brands that innovate around these constraints are more likely to succeed.
For example, recognizing the frequent power outages in Nigeria, Oraimo introduced high-capacity power banks, which became a top-selling product. Similarly, we focused on mobile accessories that could endure tough usage environments, understanding that consumers in emerging markets value durability.
Conclusion
Launching a product in emerging markets like Nigeria and West Africa requires a localized, multifaceted approach. Success lies in understanding the unique market dynamics, leveraging local partnerships, and tailoring marketing and distribution strategies to meet local needs. By building trust, maintaining visibility, and adapting to challenges, businesses can unlock the immense growth potential that these regions offer.
●Taiwo Disu is a seasoned Marketing and Brand Strategist with over a decade of experience across the Financial Services, Tech, Web3, Mobile, Media, and Entertainment sectors. He specializes in driving brand positioning, launching new markets, and executing multi-million-dollar marketing campaigns across Nigeria and West Africa.