The world of business and market research in emerging markets is filled with countless opportunities and challenges. Imagine a country on the cusp of transformation, evolving from a low-income, pre-industrial society to a modern industrial powerhouse with an improved standard of living. This is the essence of an emerging market—a nation poised to join the global economy.
As these economies experience robust growth, they present enticing investment prospects. However, it’s essential to remember these opportunities come with their fair share of risks. Delving into the world of emerging markets means navigating the complex waters of political instability, information scarcity, currency fluctuations, infrastructure challenges, crime, unrest, and investment volatility. The key to success lies in striking the perfect balance between seizing opportunities and mitigating risks.
Embarking on qualitative market research in emerging markets is an exciting journey, but it’s crucial to be prepared for the unique challenges that impact both the research process and the information gathered. Ensuring credible and reliable data is the cornerstone of successful market research in these dynamic environments.
Researchers and brand owners recognize the importance of understanding consumer behavior. However, in many emerging markets, translating consumer behavior into actionable insights can be a daunting task.
Venturing into market research in emerging markets comes with its own distinct set of challenges. These challenges can significantly impact the findings, potentially leading to outputs that lack strategic insight. Often, brand owners from developed markets lack knowledge or contextual understanding of the issues faced in emerging markets, placing unrealistic demands on researchers to deliver results that may be unattainable.
To navigate these complexities, it’s essential to be aware of the most common challenges, which range from basic infrastructure issues to cultural nuances. Understanding the impact these challenges have on the overall market and market research specifically is crucial, as is identifying potential solutions to overcome them. The table below highlights these challenges, their effects on the marketplace, and strategies to address them.
Challenge | Issue | Solution | Impact |
Poor Infrastructure | Affects access and travel time to get to facilities | Arrange central venues and transport for participants – collect and drop | Cost implication |
Potential Corruption & Fraud | Potential participants cheat and/or overstate on screening details during the recruiting process | Implement extra screening processes to limit/exclude the ‘cheaters’
| Cost implication |
Diverse Cultures | Diversity affects methodologies used and processes when screening (e.g. some cultures will only trust face-to-face and others need parental consent even as adults) | Understand the target groups prior to proposing research methodologies and/or processes | Timing on proposals and field operations – build in extra time |
Less Access to Education (Understanding) | Last-minute cancellations | Over-recruit | Cost implication |
Social and Political Instability
| Rioting and unrest creates chaos, resulting in participants and vendors unable to reach their destinations | If there is a chance of rioting, and the inability to reach venues, have a pre-determined back-up plan – like online options | Cost implication to change arrangements or even cancel sessions |
Research Processes | Often limited professional resources | Design customized research methods to gain best insights | Cost to use resources who have experience in emerging market research |
Socio-Economic Status in LatAm | Recruiting challenges when it comes to finding specific socio-economic segments of the population | Over-recruit AND understand the local market diversity and how it is measured | Cost to use resources who have experience in emerging market research and have updated information and specific questionnaires for socioeconomic control, specifically the abbreviated versions |
How Can Sago Help With Market Research in Emerging Markets?
Sago has vetted partnerships in most emerging markets as well as in-house experts who work alongside brands and agencies to:
- Assist with recommendations on best practices in these markets to preempt and mitigate potential challenges and help set expectations on the expected experience for brand clients.
- Advise on details that could impact the processes, budgets, insights, and overall outcomes of the research study at hand.
Successfully Tap Into Emerging Markets
Work with trusted experts to make the most of your projects in emerging markets. Learn more about our Global Qualitative Services