We specialize in helping companies define, assess, and size new markets
New market exploration can mean many things: expansion into new geographies or customer segments, creation of new product categories, or even the establishment of unexpected new business models. Like all business decisions, this exploration needs to be structured, targeted, and rigorous. But these new markets are often nascent and unclear, making it tricky for companies to understand who is competing in the space, how much financial potential is at stake, and what exactly lies ahead.
For years, we've helped companies articulate the precise nature of the opportunities they find. We know how to assess what barely exists, going far beyond extrapolation to uncover inflection points in market development, obstacles to adopting new solutions, and footholds where market entry will be highly effective. Our work focuses companies on what matters most.
We are not just researchers, but highly-accomplished doers, and our highest priority is helping clients design pragmatic approaches to exploit business opportunities.
Download our working paper on 8 factors that drive the adoption speed of new products >>>
Download our working paper on strategy for new or uncertain markets >>>
What we’ve learned
Our experience in Emerging Markets
The principals at New Markets Advisors have an outstanding track record in emerging markets, including holding executive positions in industries ranging from telecom to banking. Our successes include helping to build Africa's most successful-ever venture capital-backed company, Celtel BV. We excel in tough environments.
We know that emerging markets are a graveyard of corporate ambitions. For every powerhouse in developing countries, such as Coca-Cola or GE Healthcare, there are innumerable businesses that struggle to generate demand or beat savvy local competitors. Ford, Vodafone, and many other well-managed companies have largely failed to make money in key emerging markets.
In our view, a big problem is that many firms follow the same strategy in market after market -- target affluent consumers or businesses in Tier 1 cities, and then try to have demand trickle down due to brand prestige and the influence of lead users. Whereas this approach might have once worked in major countries, it is increasingly outdated except for a handful of luxury brands. Local competitors copy winning formulas too quickly, customers insist on offerings that fit their context, and distribution is hard to secure.
Another culprit is having too great a focus on achieving low prices. Price is absolutely a factor in these markets -- at all tiers of customers -- but oftentimes the real emphasis should be on lowering upfront costs, reducing working capital requirements, and creating new business models.
As detailed in the book chapter on this topic in the critically-acclaimed Capturing New Markets, we help clients find success through approaches such as:
Learn more from our client impact stories