Globalisation of Product Management: Navigating Emerging Markets
by Harry Chang • 10 December 2024
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In the first of a two-part article series, discover the dynamic world of product management in fast-growing economies, where unique challenges turn into opportunities across regions including Africa, India, Latin America and Southeast Asia. Learn to create products tailored to local needs while using global expertise to tap into these evolving markets.
Introduction: Why Emerging Markets Matter
Introduction: Why Emerging Markets Matter
Emerging markets represent the future of global economic growth. With millions of consumers gaining access to disposable income and technology, these regions are the perfect testing grounds for innovative solutions. However, their dynamic nature demands a blend of adaptability, creativity, and resilience from product managers.
This guide isn’t just about understanding emerging markets—it’s about equipping you with the strategies and insights needed to succeed. From localising products to building partnerships, we’ll cover everything you need to know to thrive in this ever-evolving landscape.
Introducing the defining nations of emerging markets: Brazil, Russia, India, China, South Africa, as well as their neighbouring countries
What Are Emerging Markets?
What Are Emerging Markets?
Emerging markets are economies in transition — rapidly growing but still developing. They sit between the industrialised world and low-income nations, offering unique characteristics and opportunities:
Booming Economies: Countries like India and Vietnam are posting GDP growth rates that far outpace developed nations. This growth fuels demand for products and services across all sectors.
Urbanisation in Overdrive: Cities in these regions are expanding at unprecedented rates, creating new urban consumers with modern needs.
Middle-Class Explosion: By 2030, most of the world’s middle class will reside in emerging markets, with purchasing power rivaling that of traditional markets.
Technological Leapfrogging: Many emerging markets skip older technologies entirely. For example, mobile wallets became the norm in regions where credit card adoption was minimal.
Understanding these dynamics is crucial to developing strategies that resonate with local populations while driving global success.
Challenges and Opportunities: The Double-Edged Sword
Challenges and Opportunities: The Double-Edged Sword
Emerging markets present a paradox: the same factors that create opportunities often bring challenges. Let’s break them down:
Challenges
Cultural Complexity: A one-size-fits-all approach doesn’t work here. Every region—and often, every subregion—has its unique preferences and values. For example in India, religious and cultural diversity influences everything from product design to marketing language.
Infrastructure Constraints: Unreliable electricity, limited internet connectivity, and fragmented supply chains can hinder operations. Many African countries, for instance, rely on mobile payments because traditional banking infrastructure is underdeveloped.
Economic Volatility: Exchange rate fluctuations and inflation can erode profit margins.
Regulatory Hurdles: Bureaucratic processes and shifting regulations make compliance challenging.
Opportunities
Unmet Demand: With growing populations, the need for affordable healthcare, education, and consumer goods is skyrocketing.
Digital-First Consumers: Many consumers are engaging with the digital world for the first time, offering a clean slate for innovation.
Youthful Demographics: A large percentage of the population in emerging markets is under 30, making them ideal for tech-driven, forward-looking products.
Strategies for Thriving in Emerging Markets
Strategies for Thriving in Emerging Markets
Product managers must navigate a delicate balance of global expertise and local insight. Here’s how:
Affordable Innovation: Use cost-effective methods to deliver high-quality products that fit within consumers’ budgets. Xiaomi captured market share in India by offering feature-rich smartphones at competitive prices.
Build Strong Alliances: Partner with local distributors, influencers, and governments to gain market entry and trust. Netflix partnered with Indian telecom companies to bundle its services with mobile data plans.
Go Mobile-First: In regions where smartphones are the primary gateway to the internet, optimise products for mobile use. TikTok’s user-friendly interface and low data consumption helped it dominate emerging markets.
Follow the Data: Invest in analytics to identify emerging trends and customer preferences. Amazon uses AI-driven algorithms to personalise recommendations for its global customer base.
Customer Obsession: Constantly seek feedback and iterate on products to meet evolving needs. Shopee’s gamified shopping experience was developed in response to consumer preferences for engaging, interactive platforms.
Case Studies: Success in Action
Case Studies: Success in Action
To truly understand the power of effective product management in emerging markets, let’s explore how leading companies have navigated challenges, embraced local nuances, and driven growth through innovative strategies.
Introducing some examples of product-driven tech companies in emerging markets: Jumia (Nigeria), Paytm (India), Gojek (Indonesia), MercadoLibre (Uruguay), Tokopedia (Indonesia)
Jumia: Building E-Commerce in Africa
Jumia’s journey as Africa’s leading e-commerce platform is a masterclass in overcoming infrastructural and cultural challenges through strategic product management. With over 50% of its transactions happening on mobile devices, Jumia tailored its operations to the realities of a continent with diverse challenges, from low internet penetration to fragmented logistics.
Key strategies:
Customer-Centric Approach: Jumia tailored its user experience for low-bandwidth environments, ensuring its platform remained accessible even in regions with poor connectivity. This included lightweight app designs and offline-friendly features.
Local Partnerships: By collaborating with small delivery companies and local couriers, Jumia solved the “last-mile” delivery challenge. These partnerships enabled deliveries to remote areas that larger logistics companies overlooked.
Iterative Improvements: JumiaPay was developed after observing customer hesitation about online payments, addressing trust issues and creating a secure digital wallet for seamless transactions.
Through these strategies, Jumia not only built a loyal customer base but also empowered local businesses by giving them access to larger markets. Today, Jumia is more than just a shopping platform—it’s a lifeline for commerce in Africa.
Paytm: Democratising Payments in India
Paytm revolutionised digital payments in India by transforming a largely cash-based economy. It wasn’t just about creating a payment platform; it was about building trust and adoption in a market where cash had long reigned supreme.
Key strategies:
Understanding Consumer Behavior: Paytm focused on enabling small, frequent transactions such as paying utility bills, recharging mobile plans, or making purchases at local shops. This strategy helped build consumer trust and integrate Paytm into everyday life.
Regional Customisation: Recognising India’s linguistic diversity, Paytm offered support in multiple languages, enabling users from rural and semi-urban areas to interact with the app comfortably.
Seamless Merchant Integration: QR codes became Paytm’s signature feature, allowing even the smallest vendors to accept digital payments without investing in expensive POS systems.
Paytm now serves as a one-stop solution for payments, banking, and financial services. Its success highlights how understanding local needs and addressing pain points can lead to mass adoption.
Gojek: Solving Daily Problems in Indonesia
Gojek epitomises how a product can grow from solving a single problem—transportation—into a multifunctional ecosystem that addresses nearly every aspect of daily life in Indonesia.
Key strategies:
Data-Driven Diversification: Gojek used consumer data to identify complementary needs, expanding from ride-hailing to food delivery (GoFood), logistics (GoSend), and financial services (GoPay). Each new feature addressed a specific gap in the market.
Hyper-Local Adaptation: By employing local drivers and merchants, Gojek built trust and ensured cultural alignment with its user base.
Scalable Ecosystem Design: Gojek’s super app model integrated multiple services seamlessly, keeping users within its ecosystem and making it indispensable for everyday activities.
Gojek’s platform created millions of jobs and introduced innovations like cashless transactions in traditionally cash-heavy markets. It became a blueprint for other super apps globally.
MercadoLibre: Thriving Amid Economic Turbulence
In the economically volatile landscape of Latin America, MercadoLibre’s success showcases the power of resilience and innovation in product management. Its ability to navigate inflation and logistical challenges is a testament to its robust strategies.
Key strategies:
Addressing Trust Issues: MercadoPago, the company’s payment gateway, was designed to combat consumer hesitation about online transactions. By guaranteeing secure payments, it built confidence among buyers and sellers alike.
Financial Accessibility: Recognising that many consumers couldn’t afford upfront payments, MercadoLibre introduced installment payment options. This move significantly expanded its customer base.
Operational Excellence: To overcome logistical issues, MercadoEnvios was launched, streamlining cross-border trade and ensuring reliable delivery even in remote areas.
MercadoLibre didn’t just survive Latin America’s economic instability—it thrived, becoming a trusted marketplace and a key player in the region’s digital transformation.
Tokopedia: Empowering Local Entrepreneurs
Tokopedia is more than an e-commerce platform—it’s a bridge connecting small sellers to the broader economy. Its focus on empowering local businesses has transformed the way Indonesians shop and sell.
Key strategies:
Empowering SMBs: Tokopedia provided easy-to-use tools that allowed rural sellers to create online stores, helping them reach urban consumers and grow their businesses.
Trust-Building Features: To address concerns about online scams, Tokopedia implemented features like verified sellers, buyer protections, and cash-on-delivery options.
Scalable Logistics: By partnering with local logistics companies, Tokopedia ensured fast, reliable delivery even in Indonesia’s remote areas.
Tokopedia democratized e-commerce, giving small entrepreneurs a voice in a competitive market. Its success highlights the importance of inclusivity and trust in product management.
Key Takeaways from Case Studies
Key Takeaways from Case Studies
Each of these companies demonstrates that success in emerging markets hinges on understanding and addressing local dynamics. Common themes across the case studies include:
Customer-Centricity: Building trust and solving real problems for local users.
Adaptability: Iterating on products to suit market conditions, from low-bandwidth environments to cash-dominant economies.
Scalability: Designing ecosystems that grow with the user base, such as Gojek’s super app or Jumia’s partnerships with local couriers.
Empowering Communities: Supporting local sellers, drivers, and businesses to foster loyalty and economic growth.
By focusing on these principles, product managers can turn challenges into opportunities and unlock the immense potential of emerging markets.
Conclusion: The Road Ahead
Conclusion: The Road Ahead
The challenges of emerging markets may seem daunting, but the rewards are equally significant. By combining local insights with global strategies, product managers can create innovative, inclusive solutions that address real-world problems. Success in these markets is about more than profit—it’s about driving meaningful change and setting the stage for a brighter, more connected future.
About the Author
About the Author
#7: Harry Chang
#7: Harry Chang
As one of the Co-Founders of NUS Product Club, Harry has re-established his commitment to our Publicity Team, focusing primarily on managing our club's website, as well as the renewal of our "Lorong Product" podcast. Besides being the Founding President of NUS Product Club, Harry has also taken on a variety of roles in other student clubs, including as President of NUS Statistics and Data Science Society, Design Manager at NUS Fintech Society, Deputy Head of Finance at Google Developer Student Clubs NUS, as well as Research & Strategy Executive at NUS Human Capital Society. Harry has also recently commenced his first full-time role after graduation as a Data Analyst at PayPal, stemming from prior data-related internships at Decathlon, SCOR, Quest and Groundup.ai.
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