I have a dollar to spend today, do you want it?

This is exactly how consumers in emerging countries think. Unlike developed markets, emerging markets are mainly driven by middle and lower class consumers that want to control their spending as they go. As an example, consumers rather pay 1$ per day on communications than subscribe to a 20$ monthly plan even if they end up paying more in a month.

This mindset has a huge impact on telecom operators approach and their business case. Consequently, vendors need to be clever enough to propose new business models to their clients operating in emerging markets. Instead of looking for additional outlets for existing offerings, they should identify unmet needs that can be fulfilled at a profit. They need to take into consideration the markets they are (or their clients) are addressing.  When addressing low-ARPU mobile users, for example, vendors need to understand the local usage patterns, optimize technology costs and set an optimized marketing strategy for these users.

While Emerging markets can be an excellent arena for trying out product innovations far from competitors’ prying eyes, they represent a much greater opportunity in viewing these markets not as one vast lab but as unique environments filled with poorly addressed opportunities that could be creatively addressed with an innovative business model. Creating new business models and helping your customers adapt to their clients, will give your company a more enduring competitive advantage. So, do you want my dollar today?

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