Enter Emerging Markets: There Are No Rules

Unlike in the past, emerging markets today are a lot more professional and digital. Newer companies are now given a chance to start without an Indonesian partner. These days you don’t need a local face at the top for your company to thrive as long as you can manage relationships well. For instance, in Indonesia today, Grab and many other foreign companies are doing well because they have adapted.

How then are emerging markets different from developed markets?

Speed and Structure

Developed countries follow structures and rules, making sure everything is in order. Speed is not as important in these developed countries so you have the luxury of planning. In emerging markets, however, it’s completely different. Speed is vital to survival. You have to move quickly, and the rules are not clear. You honestly can’t know for sure if you are following the rules. The emerging market is not bureaucratic like the developed market, it’s more kleptocratic. If you attempt to follow the rules, you can take a long time and may never reach your goal.

To move fast in an emerging market, you have to gamble. Sometimes you have to make big gambles. You make a decision first, and then you figure out how to make it work. My company moved from 0 events to 26 large scale events within 12 months because we had to move fast. You have to be more bold, ambitious and brave.

“The only rule in emerging markets is that there are no rules.”

You need to realise that you can’t sit around and wait. You may not survive in that country for long enough to do that. You have to take risks and have the freedom to make decisions. I’ve seen companies that came to Indonesia and said they would not or could not do certain things because of the head office overseas. The head office for Indonesia has to be Indonesia! You need to have the freedom to make decisions, and make them quickly, or you won’t survive here.

Finally, don’t underestimate the time it takes to set up. Many don’t consider certain delays and other factors involved. People often think that they can easily set up just like they have done in most other countries, but again, there aren’t many rules or guidelines, so you have to figure things out on your own and naturally that takes more time.

In emerging markets, you need to take 4 steps in a month rather than 2 steps even if the steps aren’t significant. You have to keep moving forward.

Aligning With Partners

In developed markets, you can basically try to make it on your own. It’s very democratic and meritocratic. You don’t need support if you don’t want it. In an emerging market, support is not an option. Support is a necessity. You need to align yourself with larger companies and establishments with power. It’s a very unconventional type of support, but it’s integral in emerging markets.