Short answer
Before launching in an emerging market, thoroughly research and map the local business network, identifying key stakeholders and planning engagement strategies that align with local customs and operational realities.
- Field
- Innovation & Markets
- Source
- SIASAT (2020)
- Method
- Conceptual modelling and exploratory research
- Evidence
- Moderate effect
Successfully entering emerging markets requires luxury brands to deeply understand and strategically engage with the complex network of stakeholders within the target market's supply chain. This innovation & markets research insight is drawn from a 2020 study published in SIASAT. Using Conceptual modelling and exploratory research, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Before launching in an emerging market, thoroughly research and map the local business network, identifying key stakeholders and planning engagement strategies that align with local customs and operational realities.
Emerging Market Entry: Luxury Brands Must Map Stakeholder Networks
Successfully entering emerging markets requires luxury brands to deeply understand and strategically engage with the complex network of stakeholders within the target market's supply chain.
SIASAT · 2020
Key Findings
- 01Western luxury brands must understand the target market's systems and consumer behavior.
- 02Strategic planning for stakeholder engagement within the supply chain is essential for market entry.
- 03A network perspective is vital for analyzing and navigating market entry challenges.
Application
Design takeaway
Before launching in an emerging market, thoroughly research and map the local business network, identifying key stakeholders and planning engagement strategies that align with local customs and operational realities.
How to apply
When planning a product launch in a new country, create a visual map of all potential partners, suppliers, distributors, regulatory bodies, and key influencers. Develop a communication and engagement plan for each.
Project actions
- 01When researching a new market, don't just look at consumers; investigate the entire business ecosystem.
- 02Consider how different parts of the supply chain interact and how you can leverage these connections.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Provides a valuable conceptual framework for market entry.
- +Emphasizes the often-overlooked importance of network relationships.
Limitations
It can be difficult to gather comprehensive data on all stakeholders in a complex, emerging market.
Reliability & validity
The conceptual nature of the study means direct empirical testing of reliability and validity is not applicable in the traditional sense; however, the model's utility can be assessed by its explanatory power and applicability to other cases.
Think critically
To what extent can a brand truly 'control' or 'influence' a network in an emerging market, or is it more about adaptation and co-creation?
Design Principles
"Networked Market Entry: Success in new markets is facilitated by understanding and actively managing the interconnectedness of market participants."
This insight is crucial for designers and strategists involved in global product launches. It highlights that market entry is not just about product appeal but also about navigating and leveraging existing business ecosystems and relationships.
What This Means for Your Design
If you want to sell a new product in a country that's just starting to grow its economy, you need to figure out who all the important people and businesses are in that country's system and plan how you'll work with them.
How to use in your project
- 1.Use the concept of stakeholder mapping to justify your design choices and marketing strategy for a new market.
- 2.Reference the need for understanding local systems when explaining your research methodology.
Add to My Project
Quick Cite
Paragraph starter
This research highlights the critical importance of understanding and mapping stakeholder networks within emerging markets. For a successful market entry, a luxury brand must move beyond a product-centric approach to strategically engage with the complex web of relationships that constitute the local business ecosystem, ensuring that product development and marketing align with established systems and consumer behaviors.
Source
SIASAT
A Discussion of a Luxury Apparel Brand Strategy in an Emerging Market: Conceptual Model with Network Perspectives
journal · 2020
View sourceQuestions About This Research
- What does the research say about emerging market entry: luxury brands must map stakeholder networks?
- Before launching in an emerging market, thoroughly research and map the local business network, identifying key stakeholders and planning engagement strategies that align with local customs and operational realities. Evidence: SIASAT (2020).
- Why does "Emerging Market Entry: Luxury Brands Must Map Stakeholder Networks" matter for design?
- This insight is crucial for designers and strategists involved in global product launches. It highlights that market entry is not just about product appeal but also about navigating and leveraging existing business ecosystems and relationships.
- How can designers apply this research?
- Before launching in an emerging market, thoroughly research and map the local business network, identifying key stakeholders and planning engagement strategies that align with local customs and operational realities.
- What were the main findings?
- Western luxury brands must understand the target market's systems and consumer behavior.. Strategic planning for stakeholder engagement within the supply chain is essential for market entry.. A network perspective is vital for analyzing and navigating market entry challenges.
- What research method was used?
- Conceptual modelling and exploratory research.
- How strong is the evidence?
- Evidence strength is rated Moderate effect, based on a 2020 journal from SIASAT.
- What should I do differently in my next project?
- When planning a product launch in a new country, create a visual map of all potential partners, suppliers, distributors, regulatory bodies, and key influencers. Develop a communication and engagement plan for each.
- What are the limitations?
- The study is exploratory and focuses on a single brand in one specific emerging market, limiting generalizability.