Overcoming Data Challenges in Emerging Markets

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Markets

Emerging markets often have immense potential for technological growth and innovation. These markets are defined as countries with developing economies and include big names like India as well as smaller ones like Kenya.

These regions are becoming natural hubs for expansion in sectors like e-commerce, technological products, fintech, and telecommunications. For instance, Apple recently acknowledged India as one of its largest markets with over 20 percent annual growth, selling 12 million iPhones in 2024. This is noteworthy because a couple of decades ago, India was not even considered a significant market.

While the opportunities are promising, navigating the data landscape in these markets comes with unique challenges.

Data and the insights derived from it serve as the foundation of innovation and development in these markets. It enables businesses to make informed decisions and create competitive strategies that help with growth. However, certain obstacles like regulations, infrastructural or cybersecurity issues can slow down the progress.

We look into strategies that help overcome these challenges and empower tech leaders to use data for growth in emerging markets.

Key Data Challenges Technology Leaders Face in Emerging Markets

Infrastructure Issues

Technology leaders need a robust data infrastructure, which includes but is not limited to reliable internet, cloud storage, and data centers. These are the backbone of effective data management and even basic operations. In many emerging markets, inadequate infrastructure leads to high latency and limited storage options.

Regulatory Hurdles

Many markets have regulatory complexities that may be daunting. There are certain country-specific laws that can complicate many processes that ideally should be seamless.

Cybersecurity Threats

Emerging markets can often lack the resources for robust frameworks to tackle cyber threats. This makes them prime targets for cyberattacks. Reports show that the global cost of cybercrime is expected to rise to $13 trillion by 2028. According to Interpol, it has increased dramatically in developing countries in 2023.

Data Localization Mandates

Many countries like India can mandate businesses to store the locally collected data within their borders. As many companies have single data warehouses, usually inside the U.S., this can pose some logistical and operational complexity.

Cultural and Linguistic Barriers

Understanding local cultural norms and languages is critical for accurate data collection and, more importantly, how the data is interpreted. If there is misalignment in these areas, it can lead to flawed insights and missed opportunities.

For instance, consumer data preferences in Asia differ significantly from those in South America.

Regulatory Landscape and Compliance: What Tech Leaders Can Do

Emerging markets operate under a variety of regulatory frameworks. While GDPR establishes global standards, countries such as Brazil (LGPD) and India (Data Protection Bill) have enacted their own data privacy regulations.

To comply with these regulatory laws, companies need to do their homework. Here are a few tips that can help:

  • Study local laws that may affect your business and get insights from legal experts.
  • Conduct regular audits to ensure compliance with all applicable laws.
  • Use tools designed to streamline compliance, ensuring that data storage and handling meet legal requirements.
  • Work with local legal experts to navigate regional regulations that may dynamically change and catch the company unprepared.

Best Practices To Handle Cybersecurity Threats

Emerging markets are susceptible to phishing and ransomware, and globally, companies are preparing for this. According to IBM, the average cost of a cyberattack has increased 10 percent in 2024, amounting to $4.8 million. A majority of businesses are realizing that they have to raise their cyber security budgets if they want to grow in an emerging market.

To secure data framework from cyber threats:

  • Educate teams on cybersecurity best practices to reduce human error.
  • Secure sensitive data with end-to-end encryption.
  • Use real-time monitoring systems to proactively detect and respond to threats.

Competitive Intelligence to Navigate Emerging Markets

Tech leaders need competitive intelligence data to gain valuable insights into local market dynamics. It is crucial to examine what the existing local players and other global competitors are doing and then form a strategy accordingly.

To give an FMCG example, when Hershey’s Chocolates, a global confectionary brand, started moving into emerging markets like India, it studied the other chocolate manufacturers. It looked into competitive intelligence data and found out what price points and weights are selling and how they can differentiate. It has to work in a different manner than the incumbents who have been in the market for decades.

Similarly, tech leaders can learn from Instagram Reels from Meta (previously Facebook). It used competitive intelligence data to study the popularity of TikTok in emerging markets like Brazil and created a product that is now even more popular than the original. 

Tech leaders get a headstart when they look at what the competitors are doing and in which particular regions investments are being made.

Data for Social and Economic Development in Emerging Markets

Data is more than just a profit-generating tool; it is also a catalyst for socioeconomic progress. Initiatives such as India’s Aadhaar program, which uses biometric data to identify citizens, show how data can help reduce fraud and streamline public services.  As dataplor notes, when data has added context, be it local or geospatial, organizations can create powerful business strategies.

In 2023, for instance, 37 million Aadhar identity cards were generated, as reported by Statista. Many companies like Google have taken advantage of this tremendous data pool to provide better fintech services to the country. 

Collaboration with local communities and organizations ensures that data-driven solutions address real-world issues effectively. 

Emerging markets represent a unique opportunity for tech leaders to expand their influence and drive meaningful change. Tech leaders need to work in tandem with the local authorities and lawmakers to get the growth and traction they desire.

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