Ogilvy & Mather had published a study about the large potential of the growing middle class in the V12 markets. Over the next 10 years, Ogilvy expects the world to add another 1 billion new middle class consumers and this would be a large market that cannot be ignored.
The report looks at the emerging trend and behavioral patterns of consumers in these 12 markets and recommended methods to capture this market for businesses. The study encompass consumers from China, Bangladesh, India, Myanmar, Indonesia, Vietnam, Philippines, Nigeria, Pakistan, Brazil, Mexico and Egypt.
For businesses, a key question would be how they can capture the hearts and minds of the consumers in these markets. Here are 3 strategies for them to do so.
1. Localization of Brands
Ogilvy had found out that consumers still take pride in their local customs and traditions even with the trend globalization and greater connectivity. Local brands have the advantage of being able to tailor their products to suit local taste. They are also adaptive enough to bring good qualities of international brands to their brand.
This is especially evident in markets such as Indonesia, Brazil, Philippines, Bangladesh and India. Hence if your brand wants to cross borders, it would have to adapt to the local culture. One good way would be to hire local talents who knows their market well.
2. Digital Presence Is Crucial
Digital transformation are a key feature of these countries. China and India are the world’s top 2 most connected countries globally and their people are embracing technology more rapidly than western countries.
India, Philippines and Indonesia hold the top 3 growth rates for Internet users globally. Brands have to tailor their digital presence in these V12 countries to local taste and also provide e-Commerce platforms on mobile and desktop to reach them.
The study predicts that the cost of mobile equipment and Internet access will drop further and make mobile access more widespread. Businesses will have to embed mobility, location technology, big data and automation in their digital presence to win at this race.
3.Urbanization Creates New Taste
Urbanization is gaining speed in the V12 countries. Between 1960 to 2016, we have seen urbanization increase from 20% to 46% in these 12 countries. India, China and Nigeria are expected the 3 main drivers and they are expected to add 404 million urban dwellers, 292 million urban dwellers and 212 million urban dwellers respectively.
If you want to attract these new urban dwellers, you must know their preference. As they are upwardly mobile and they are experiencing major shifts in their lives, they care more about product experience rather than reputation.
In other words, you cannot expect them to appreciate and pay a premium for established brands such Prada. Instead, your brand has to communicate your value in terms of experience to them. This gives younger brand the advantage over the more established brands.
Localization, technology and urbanization are the three main trends that would help brands to capture the market in these 12 emerging markets. Urbanization opens up opportunities for new businesses to localize and add technology into their products to reach new markets.