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Explore and Identify Untapped Markets to Grow Profitability and Market Share. This presentation was given on 13 March 2013 in the Management World Forum 2013 in Singapore. The presentation discusses: How to discover untapped markets How to diversify and expand core services to new countries or regions How to develop new segments and products for untapped markets How to achieve success, mitigate risks and avoid failures of penetrating into untapped markets.
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Explore and Identify Untapped Markets to Grow Profitability and
Market Share
ABOUT Direct Selling e-commerce Hong Kong company with HQ in Malaysia.Facilitates entrepreneurship in emerging markets.Offers physical products in wellness, nutrition, beauty and home care.Offers digital services in online education, travel and business tools.
30 Brands
Global Presence and Distribution
AgendaDiscover untapped marketsDiversify and expand core services to new countries or regionsDevelop new segments and products for untapped marketsAchieve success, mitigate risks and avoid failures of penetrating into untapped markets
DISCOVER ACHIEVEDEVELOPDIVERSIFY
What Are Untapped Markets?
BOP“There are an
invisible market waiting at the bottom of the world
economic pyramid”
“The Next 4 Billion”
Is this your next untapped market?
The Case of Egypt
Key Success Factors to Discover
Geopolitical trends – the Arab SpringDemographic trends – educationSocial trends – female employmentHealth trends – obesityTechnology trends – internet & mobileEconomic trends – middle class
Untapped Markets BenefitsNo to low competitionEarly to market – competitive advantageBinding business with social purpose
DISCOVER ACHIEVEDEVELOPDIVERSIFY
Key Success Factors to DiversifyGenerate social and commercial benefits.Create life enhancing offerings. Construct new business models -
Reconfigure products and servicesBuild new distribution systems
Collaborate with:Local partnersGovernments
Framework for Innovation
The Next Billions: Unleashing Business
Potential in Untapped Markets.
World Economic Forum in Collaboration with the
Boston Consulting Group
Key Success Factors to DiversifyCreate entrepreneurs rather than employees.Source for local suppliers.Leverage on local distribution channels.Provide access to capabilities and knowledge.Engage communities.Diversify your team.
Truly Localize…
The Case of Côte d'Ivoire
DISCOVER ACHIEVEDEVELOPDIVERSIFY
Key Success Factors to DevelopDevelop product and services that have big impact on livelihoodLocalize marketing Tap word-of-mouth marketing communicationEnd-to-end local cultural experienceEmbrace technology – internetMiniature rather bulk to lower prices
The Case of Online Education
Case Study: From India to Africa
The Case of Indonesia’s On-liners
DISCOVER ACHIEVEDEVELOPDIVERSIFY
The PitfallsHigh barriers of duties and taxesLack of local talentChallenge of profit repatriationCurrency restrictionsIncome tax challenges of Permanent Establishment (PE)Corruption
Key Success Factors to Achieve
Appoint highly professional local advisors and consultants.Engage business partners and friends.Decide early on the right legal structure.Commit to the local laws on the and ignore endeavors that bypass them.
DISCOVER ACHIEVEDEVELOPDIVERSIFY
Put It All Together…
Bottom Of PyramidThe Next 4 Billion Zero competitionSocial Business
Life Enhancing ProductsNew Distribution ChannelsLocal suppliers
Localize MarketingWord of mouthEmbrace technologyMiniature vs. bulk
Engage business partnersDecide early on structureCommit to laws
Thank YouQ&A
