{"id":704,"date":"2016-02-08T00:00:00","date_gmt":"2016-02-08T00:00:00","guid":{"rendered":"https:\/\/www.motionpoint.com\/?post_type=blog&p=704"},"modified":"2016-02-08T00:00:00","modified_gmt":"2016-02-08T00:00:00","slug":"the-survival-guide-to-entering-emerging-markets","status":"publish","type":"blog","link":"https:\/\/www.motionpoint.com\/blog\/the-survival-guide-to-entering-emerging-markets\/","title":{"rendered":"The Survival Guide to Entering Emerging Markets"},"template":"","blog_categories":[5,9],"resource_categories":[],"targeted_localized_audience":[],"document_categories":[],"class_list":["post-704","blog","type-blog","status-publish","hentry","blog_categories-international-business-strategies","blog_categories-marketing-strategies"],"acf":{"blog_short_description":"Retailers, gain insights into overseas emerging markets\u2014and how to engage new customers online\u2014with these tips.","news_inline_styles":"","blog_video_id":"","article_body":"

Retailers in every industry\u2014from apparel and cosmetics to accessories and electronics\u2014have firmly embraced the Internet as a sales and marketing channel. And their efforts are literally paying off: most quickly see growth in their home markets.<\/p>\n

But as competition increases and the world gets smaller (both thanks to the Internet), brands must expand into new markets to remain relevant and generate more growth. Increasingly, emerging markets<\/b> are providing the greatest opportunities, particularly in e-commerce and m-commerce.<\/p>\n

In 2014, CMOs based in Asia-Pacific, North America and Europe, were asked about their current and future marketing plans for emerging markets such as China, Brazil, Russia, India and Turkey. <\/p>\n

These CMOs overwhelmingly believed that within the mere years, emerging markets would become \u201cmore important\u201d in their market strategies than ever. (More than 80% of CMOs in Asia and Europe agreed with the statement; more than 60% of CMOs in North America agreed.) Nearly 70% of CMOs based in Asia said emerging markets were already \u201ccrucial\u201d to their current business mix.<\/p>\n

The opportunity is real. According to Goldman Sachs<\/a>, global GDP will increase by 3.5% this year over 2015. The GDPs of emerging markets will grow the most: 4.9% in 2016 over 2015, compared to a 4.4% year-over-year increase in 2015 over 2014.<\/p>\n

The opportunity is visible in other ways, such as these markets\u2019 rapid adoption of smartphones and social networks. Take a look at Latin America. According to recent comScore data<\/a>, Latin Americans are crazy about social media, spending about 30% of their desktop computer time visiting social networks\u2014more than all other global consumers. Latin Americans spent 6.1 hours on social media each month. Brazilians spent 8.8 hours each month. (North Americans spent less than half of that time on social media.)<\/p>\n

Progressive companies are taking note, and engaging with these markets.<\/p>\n

For instance, mobile ad spends are through the roof in China. They reached $15.8 billion last year (eclipsing desktop spending for the first time), according to a recent eMarketer report<\/a>. Mobile spending now represents nearly 25% of all media ad spending in the market, a \u201chigher level than in any other market worldwide,\u201d the report said. Spending will grow by nearly 60% in 2016, with annual growth expanding by 20% or more for the next three years.<\/p>\n

But back to that survey of CMOs we recently mentioned. Those professionals universally agreed that the biggest hurdle to overcome in creating great marketing campaigns for emerging markets was cultural and consumer differences<\/b>.<\/p>\n

Further, a recent study<\/a> by mobile-ad platform Clickky suggests that more than 80% of campaigns in emerging markets are focused more on clicks than engagement<\/b>\u2014a strategy that must change, if companies are craving customer retention.<\/p>\n

So how can retailers smartly and resonantly connect with brand-new consumers in these emerging markets? We\u2019ve compiled several tips.<\/p>\n

Become Culturally Fluent<\/h2>\n

Big ad and marketing spends will certainly generate interest for your brand in emerging markets, but if those messages don\u2019t resonate with your new customers-to-be, it\u2019s wasted money.<\/p>\n

This can be tricky territory, since this strategy requires a breed of in-market expertise many companies don\u2019t have. Messaging must be meticulously crafted for local consumers, and cater to their unique cultural sensibilities and concerns.<\/p>\n

Put another way: What plays in America can fall flat in global markets.<\/p>\n

Kellogg\u2019s famously experienced this<\/a> in the mid-90s. The cereal manufacturer entered the Indian market, keen to woo more than a billion new customers. Indians were uninterested, or couldn\u2019t afford the products. Convenience-savvy consumers, who were most likely to appreciate Kellogg\u2019s products, kept buying breakfast cookies from roadside vendors. Kellogg\u2019s sales were anemic, until it produced a line of low-cost cookies and distributed them to roadside stalls.<\/p>\n

When Acer deployed its \u201cSimply My Life\u201d campaign in China, consumers didn\u2019t bite<\/a>. PC purchases are a big deal for Chinese families; they\u2019re far more concerned about durability than cost. Acer\u2019s messaging, which focused on its low prices, unwittingly convinced Chinese consumers that the PCs were unreliable!<\/p>\n

The takeaway: Brands must understand an emerging market\u2019s traditions, and its zeitgeist. Partnerships with savvy agencies or localization providers often demystify these nuances, and help tap into consumers\u2019 true sensibilities.<\/p>\n

Become Literally Fluent <\/h2>\n

Of course, if this in-market messaging isn\u2019t actually in the market\u2019s preferred language, it\u2019ll miss the mark every time.<\/p>\n

MotionPoint localizes websites and marketing material for hundreds of brands in many emerging markets. Getting a company\u2019s content \u201cin language\u201d is the critical first step to engaging new international consumers.<\/p>\n

ChannelAdvisor agrees. \u201cTranslation should be at the core of your expansion plans,\u201d it recently wrote. \u201cAdvertising to new regions, particularly on marketplaces, requires listing details (e.g., product title, description) to be translated into the local language. Spending the time to get your data properly translated will ensure you reach those customers with optimal clarity.\u201d<\/p>\n

Indeed, we\u2019ve found that simply translating a website\u2014with no additional effort invested in crafting customized messaging for local consumers, or deploying other market-specific optimizations\u2014often generates traffic growth of around 11% in their first year, and 17% by their third year. (This data reflects our analysis of Spanish sites<\/a> localized for the U.S. Hispanic market.)<\/p>\n

According to Victoria Bloyer, a Global Online Analyst for MotionPoint\u2019s Global Growth team: \u201cOur research indicates that 30% to 50% of a localized website\u2019s value comes exclusively from translation,\u201d she says. \u201cSimply being in-market, in-language, is a powerful \u2018must-have\u2019 for companies as they expand into emerging markets.\u201d<\/p>\n

So where does the remaining value of a localized website come from? Technology-driven optimizations, we\u2019ve found. These optimizations can generate increased sales of around 123% in a site\u2019s first year, and 160% by its third year\u2014much higher than with translation alone.<\/p>\n

Let\u2019s take a closer look.<\/p>\n