Given that emerging and developing markets are expected to account for nearly 70 percent of global gross domestic product (GDP) in 2030 (in purchasing power parity terms), and account for nearly two-thirds of global growth in spending on the consumer, opportunities Austria Phone Number List for consumer goods companies remain significant.
However, quantifying the opportunity and building a solid strategy, based on hard facts, is not easy.
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When researching and using data from emerging markets, there are many things to consider, some of them are challenges anywhere: standardization of definitions, understanding of methodological differences, and some more specific to countries with weaker governance and challenging business environments. .
According to Euromonitor International, there are six key guidelines to ensure data quality is of the highest standards:
Unfortunately, national statistics are rarely the priority of cash-strapped governments.
The quality of the data can be questionable, due to outdated methodologies, lack of technology, or political bias or corruption. For a company looking to evaluate markets and reduce risk, this adds complications and uncertainty to the decision-making process.
Working with a market research provider can help you determine which data sets are of the highest quality and most reliable.
Think about proxies
Data availability is often poor. Therefore, when the desired data is not available (or of questionable quality), it is worth considering proxies to help you get a better context of a market.
Data on durable goods ownership, urbanization, and education can be a good indicator of income data when it comes to sizing the middle class. In contrast, a low proportion of the population with access to improved sanitation facilities or a high proportion of the urban population living in slums may target the population living below the poverty line.
Be careful with punctuality
Surveys can be done sporadically. This can be a particular problem when trying to gain insight into a rapidly growing and evolving emerging market.
What was true in 2014 could be extremely different from the situation in 2017.
Comparison with similar countries or related data sets can help here, allowing the data to be extrapolated. For example, the lack of recent data on population by education in country X could be eradicated by looking at enrollment or completion rates (generally available) and population growth by education in neighboring countries.
Remember that regional variations in emerging markets can be extreme. If you are researching the data as a prelude to market entry, it might be worth trying to find specific city or region data or urban data rather than national figures.
Never forget the importance of definitions
The comparability of definitions between countries is always a challenge, regardless of the level of development of an economy. However, it can be magnified in emerging markets.
This is important for a customer who manufactures ovens or ready meals. When researching household installations for a project, we were surprised to find that the percentage of households with a toilet was surprisingly high in some emerging markets.
After verifying definitions and methodology, it appears that the data for some countries refer to whether a household has a shower toilet and even the use of a bucket means yes. When in developed countries, the percentage of households with access to a toilet means a flush toilet
Conducting this type of due diligence is imperative when comparing new markets to ensure that accurate Phone Number List data is compared and decisions are based on hard facts.
A number of statistical offices only provide the data in pdf reports, or graphs, and it can be nearly impossible or time-consuming to enter the data into statistical software. The data can also be difficult to find if it is in a pdf.
Statistical office websites can be extremely slow with many dead ends and error messages.
There are also language barriers, which are alleviated with translation software, but still pose a challenge when it comes to understanding precise definitions. Also, several countries only store paper publications.
When researching emerging markets data, we must constantly question the data, assess the potential for quality issues, political bias, clarity of definition, accuracy of methodology, etc.