Understanding the market and planning to enter it
Recently, everyone around us is talking about exporting, selling and entering the markets of Middle East countries. Apart from the differences in currency prices, what has increased the popularity of this topic is the proximity and availability of these markets to us. They seek to implement their creative ideas and try to turn them into a profitable business. Among startup businesses, it is sometimes attractive to enter new markets and reach the masses of its audience, which are sometimes rich, which is considered as simple as the translation of software items. But what really bothers us is why knowing this market and planning to enter and market in it are the last things that are thought of?
To understand this more precisely, it should be noted that in the last 5 years, the business market in the Middle East has witnessed a rapid and extensive development. This progress is influenced by global factors such as the development of e-commerce, the emergence of entrepreneurial businesses and startups, the power of decentralized media and modern influencers.
The largeness of the Middle East market
1. The Middle East is experiencing a lot of growth for several reasons
The demographic factor plays an important role in this growth, especially since half of the population of the Middle East countries is currently under 30 years old. Young audiences spend more time on social networks than middle-aged ones, and therefore provide marketers with a great opportunity to Use this platform to market your products. The countries of the Persian Gulf region, as part of this market, have young, expert and wealthy consumers, which indicates a rich market for expensive brands and high-quality products. Although some countries in the region are facing economic instability. , but in addition to the low tax rate compared to European markets, this region has the highest per capita spending on consumer goods, comfort, cosmetics and fashion in the world.
2. Welcoming creative ideas
Due to the wide range of Arab speakers living in many advanced countries of the world, familiarity with many international services and experience working with their new technologies has already been formed. On the other hand, high purchasing power has lowered the risk of use, which makes the intersection of these two things a paradise for the emergence of creative ideas. In 2014, when Susanna Engels and her co-founder were working on their startup idea in Germany, they were looking for a small city where they could connect with early adopters without competitors and grow their company after validating the idea. However, getting to know the conditions and opportunities in Qatar made them move there and start their activities in the form of the Urban Point project, despite the language problem and the distance. The Qatari audience welcomed him so much that he immediately witnessed the investment of one of the Qatari mobile phone operators and was able to achieve a multifold growth.
3. Ease of entering the Middle East market
It is not difficult to segment Arab consumers and define their personality type. However, using traditional surveys and questionnaires is not a good idea. Because Arabs are generally different from other nations and are more conservative when it comes to sharing their honest observations. Monitoring the growing trends of content in social networks and understanding market trends is one of the most effective ways to identify your potential customers. And of course, we should not forget the data published by reliable bulletins regarding the interests of customers. I suggest that you plan step by step to achieve your goals by choosing a specific goal, in a limited geographical area and determining the type of content and appropriate marketing campaigns. If you don’t get help from local people in preparing and creating your advertisements and advertising messages, you need to hire someone who is an expert in the culture of that country and the colloquial expressions and methods of making advertisements of that region go viral.
4. Positive response to new and traditional marketing activities
Although the marketing methods used by famous global brands are easily available in Arab countries, paying attention to the traditions and tendencies of the people of these countries is of great value in the effectiveness of these advertisements. In a case study, a brand wanted to enter the country of Egypt, it came to the conclusion that cheerful and melodious advertisements would be well received. Therefore, although the advertising policy of the company was not like this, but according to the audience, a musical advertisement was produced and received very good feedback. With the technical growth of advertising tools, still in Arab countries, paying attention to the traditions and habits of the people has attracted the audience and has a significant effect on the virality of advertisements.
About 350 million people live in 22 Arab-speaking countries, and each of these 22 countries has its own capacities and markets, and you can find good opportunities to expand your business.
In this article, we talk about tips and solutions for entering the market of Arab-speaking countries.
By entering different markets, you actually put some of your eggs in a new basket and this reduces the risk of operating in only one market for you, these risks can be economic recession or, for example, seasonal recession. In addition, entering foreign markets increases the life cycle of your PLC product.
But before doing anything, you should check the different aspects of this job to maximize your chances of success.
S1: knowing the consumer
To enter any market, first of all, you need to know your consumers and potential customers. In your product, what is important for Iranian consumers is also important for consumers in Arab-speaking markets?
Before entering the market of another country, you must first enter the life of the people of that country. Know your audience, their culture and their user experience so that you can change your products according to their needs and coordinate with local standards.
These changes start with the translation of texts, all your communication and marketing processes should be in Arabic in order to have the most impact. To translate texts into Arabic, we recommend Transis instant translator. The instant translator in Transis delivers the translation to you 2 times faster than the normal time, and of course, at the same time, the quality of the translation is maintained and the cost of the work is fair. So don’t worry and place your order with just a few clicks on the Transis translation website.
S2: examining the economic situation of the destination country and analyzing the market behavior of that country
Before entering these markets, you should check the exchange rate, the inflation rate, the amount of export and import to it.
Does your product have a place in the market of that country? What are the benefits of investing in these countries? For example, although Qatar is considered one of the richest countries in the world, it has become one of the largest importers of agricultural products due to the lack of agricultural land and the unfavorable climate for agriculture.
Qatar is also an example to show the attractiveness of the market of Arab countries. Out of the 2.5 million population of this country, only 400 thousand people are its main citizens and the rest have migrated to it to take advantage of economic opportunities. Also, Arab countries usually suffer from a lack of specialists in various fields, which has drawn these people to this country. .
S3: Familiarity with customs and laws
To do business with any of these countries in the Arab world, you need to know the business culture, negotiation methods, behavioral details in that country, their calendar and all the specific details that are important in your business.
It is also very important to be familiar with the laws related to official contracts and labor laws in the market of Arab-speaking countries, and since these people are very proud of their mother tongue, it is good to learn a little Arabic.
S4: competitor analysis
Check the competitors that already exist in the market, and if you know that you have competitors who are planning to enter the same market, you have two options:
Enter the market earlier than them.
Wait until you see what your competitors are doing in the Arab market and analyze their strengths and weaknesses.
S5: At what scale do you want to enter your target market?
Entering a market on a large scale requires a lot of resources. Of course, by entering on a large scale, you will surely have more influence in the market of your target country and you will attract more customers and local businesses to you, but this work can be as profitable as it can be and throw you forward, it can be dangerous. And if you do this recklessly, you may waste your capital.
Entering on a smaller scale can give you the opportunity to trial and error and learn in a new market, but you likely won’t be able to get a lot of attention for your brand in a short period of time.
Now that you have reviewed the essentials about your target market and determined the scale of entering it, it is time to familiarize yourself with the various ways you can invest in that market to choose the best method. In this choice, you should check the market opportunities as well as your internal capabilities. To enter the market of Arab countries, you can use the following channels:
Exporting is sending goods from inside the country to abroad, which is usually done in two ways:
Direct export is the direct sale of products in the market of another country.
This method is the most well-known way to enter the market of foreign countries, exporting is a relatively cost-effective method because you will not need to invest in production facilities in that country. You just need to budget for marketing and shipping costs, etc.
Some companies hire people to supply and distribute products in the target country market in order to communicate directly with customers; Of course, forming executive teams in other countries is not an easy task, especially when these teams also need training.
Some bigger companies also create distribution networks for their products like chain stores.
Indirect export is the indirect supply of goods through export management companies.
Here you are dealing with an importer; While in direct export you are facing consumers.
In this method, you sell your products or services to companies that deal with the target market, and all marketing and sales activities are removed from your shoulders, and your products are known in the target market at almost zero cost.
This is how several people start a company, these people can be in different countries. These partners make agreements to share profits and losses between the parties and share management with each other. In this method, the risk of entering the market of other countries is divided among several people.
Foreign direct investment
As the name suggests, it means you go and directly invest in your target market, provide labor, workplace and technology and other necessary things and set up your company in the same country.
Buying franchises of companies or Franchising
Another way is to enter the market of foreign countries, this method is somewhat similar to the production under the license of another company; Because a company’s intellectual property rights are sold and the person who buys the franchise can sell the company’s products, but there are strict rules for business by the franchisee.
A very important point is to conclude a contract with Arabic-speaking companies, whether it is in the purchase of the company franchise (or other methods), the exact translation of the contract and the same understanding of it by the parties; Therefore, using translation software that only gives you a limited understanding of the meaning of a text to translate important business texts that word for word determine the fate of your business is not the right thing to do. Leave the translation of your important documents and contracts to the experts, we offer Transis Farsi to Arabic and Arabic to Farsi translation.
On the Transis site, you can find the best and most experienced translators using the opinions of users and experts (by clicking on the link above, you can see the rating of Arabic to Farsi translators.) and stay in touch with your chosen translator throughout the translation process.
Produced under Licensing
One of the low-risk methods in business is where the first company gives permission to the second company in the target country to legally use the production rights or the name and production methods of that company, and even the trademark of the first company is included on the products produced in the second company. . This method requires little capital.
In fact, instead of exporting your products, you are exporting your factory in a way.
Native partner or Partnering
A native partner will help you get to know the people, culture, laws, and general situation of your target country. Having a native partner in countries with a completely different culture is very helpful.
Buying a local company or Buying a company
One of the ways to enter the market of other countries is that the rules are the same for you and other manufacturers in that country, in addition to saving some of the advertising and marketing costs to make people aware of your brand.
Works such as construction, engineering and agricultural activities are called. In these projects, the work is completed and built at the specific location of the contract.
If you are looking for marketing in Arab countries, contact us.
- Countries that have a lot of ports often consider these ports as the main gateway and vital artery of global trade and economy. Ports play a very important role in the supply chain of goods between different countries. Therefore, it can be said that ports in the Persian Gulf region can somehow (directly or indirectly) influence the country’s economy. One of the most important aspects of finding customers in this field is managing relationships with different customers. If you are looking for customer retention as well as an effective and effective marketing in this area, you should:
Appropriate response to the customer
Paying attention to requests and meeting customer needs
Evaluating the level of customer satisfaction and paying attention to the best solutions to ensure customer satisfaction
Using optimal strategies to retain customers
And pay attention to things like this. But you need to know that the purpose of marketing in ports is not only aimed at product marketing. In port marketing, you can also benefit from service marketing and respond to different needs of customers. But what are the important strategies for international marketing in the Persian Gulf area?!
Look for a wide network of port customers. By activating the private sector of ports and also partnering with them, you can benefit from a wide and extensive network of customers.
Continuously improve the tariff system.
One of the most important factors for having developed ports is to transform the ports of a region into a free zone for trade. In this case, you can witness the development and improvement of port activities.
Using artificial intelligence to create new port terminals as well as using digital terminals and smart ports.
Choosing the appropriate logistics chain after ports and using multi-faceted terminals, such as: developing and improving transportation routes and also optimal utilization of rail transportation
Using favorable economic pricing structures with appropriate economic incentives
Using the best methods of port mechanization and prioritizing electronic programs
Using favorable and suitable incentive schemes for optimal exploitation of shipping lines
In today’s world, where we are witnessing very intense competition between different ports, the use of different solutions and strategies among different ports for port marketing has become very popular. Therefore, every port is trying to capture the international port markets and achieve a greater share in these markets.
The competitive market follows certain rules to improve the economic conditions in all parts of the world. The application and use of appropriate techniques and techniques in marketing is one of the inseparable factors of finding customers in competitive markets, which will be widely used regardless of domestic and foreign markets. Do you know competitive international markets?! International marketing in the Persian Gulf is an example of a fiercely competitive market among ports, where companies intervening in these markets will each seek to gain more profit from the market. Therefore, one of the most effective factors in the development of ports is marketing.
When we are faced with an increase in the number of customers and also an increase in capacity in the ports, we have definitely applied extremely favorable marketing. With the increase of customers in the ports, we will witness their new needs emerging and consequently increase the capacity in the ports. Therefore, the efficiency of ports has also increased and we will see economic improvement in a region.