Emerging markets offer immense opportunities, but they also come with unique challenges. For businesses looking to expand or optimise operations in these regions, the key lies in understanding the market intricacies, balancing agility with efficiency, and leveraging data-driven strategies. Lasha Gogiberidze, a seasoned entrepreneur with deep expertise in building and scaling startups, shares actionable insights to navigate these complexities effectively.
Identifying Viable Markets
When assessing potential markets, Gogiberidze emphasises the importance of thorough research. “You can’t call anything an emerging market nowadays with internet penetration,” he notes, highlighting that local and international players dominate most regions. To make informed decisions, he advises focusing on:
- Legislative landscape
- Micro and macroeconomic trends
- Demographics and cultural attitudes
- Internet penetration and technology affordability
- Payment infrastructure, including mobile wallets and bank systems
Tools like Google Trends can help pinpoint whether verticals like casinos, lotteries, or sports betting have more traction in a given area.
Entering a New Market
Market entry requires a strategic approach. Gogiberidze warns against assumptions, urging businesses to start with a clean slate and adapt to the local context. Key considerations include:
- Understanding payment and marketing funnels: “Is it PPC traffic, influencer marketing, or sponsorships?”
- Analysing local and international competitors: “Segregate competitors into two buckets and study their strategies.”
- Assessing talent needs: Local expertise is critical to navigating cultural and operational nuances.
Moreover, creating a comprehensive timeline with clear KPIs across payments, marketing, product, and staffing helps streamline efforts and align expectations.
Overcoming Challenges in Emerging Markets
Expanding into emerging markets is fraught with risks. The biggest danger, according to Gogiberidze, lies in misaligned expectations. “Managing stakeholder expectations and risk appetite is crucial,” he explains. Businesses must:
- Avoid replicating past successes in dissimilar markets.
- Maintain a learning mindset, accepting trial and error as part of the process.
- Engage external perspectives to challenge internal assumptions.
“Don’t fall into the trap of thinking there’s only one way,” he advises, emphasising the importance of adaptability.
Balancing Speed and Efficiency
The need for agility in startups often clashes with the demand for robust processes. Gogiberidze describes this as an art that combines natural talent with hard work. He underscores the role of stakeholders, particularly investors, in shaping the pace of growth.
“Speed must be relevant,” he notes, stressing the importance of balancing immediate goals with long-term sustainability. In volatile markets like Brazil, businesses must be prepared to adapt, knowing when to pull back and when to persist.
Leveraging Data for Operational Excellence
Data serves as the foundation for efficient and scalable operations. Gogiberidze argues that subjective decisions (those not rooted in data) are detrimental.
“Data is the neural pathway of the business,” he says. It informs every aspect of operations, from acquisition and retention to customer relationship management. He recommends embedding data scientists into each business stream to generate actionable insights.
Key Takeaways
For businesses venturing into emerging markets or optimising operations, Gogiberidze’s insights offer a practical roadmap:
- Research deeply to understand the market’s cultural, economic, and competitive landscape.
- Adapt strategies to local nuances rather than replicating past successes.
- Align stakeholder expectations with realistic timelines and goals.
- Embrace data-driven decision-making to enhance efficiency and scalability.
By following these principles, businesses can unlock the potential of emerging markets, building sustainable and data-driven organisations.
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