Fortunately, the tough markets like the Middle East and in particular Iranian market are to be lucrative ones. They are the lucrative because they are difficult to enter and are therefore somewhat shielded from competitions. This means companies seeking real profits in new markets are better off finding a partner to manage the associated risks. As they cannot afford to ignore the Middle East lucrative market just because they are tough to enter.
One of the most challenging aspects of market entry in the Middle East is to find out a right partner. Many companies are not who they say they are. They don’t have the background, experiences or financial resources they appear to claim or have. Many times a partnership is only created after a PowerPoint presentation and a few emails.
Furthermore, partner in the target market may be who they say they are, and be strong. However without proper supervision, they will head out in a direction the principal company hasn’t targeted at all or take care of their other suppliers or even worse, the competitor.
The challenges of market entry in the Middle East with a suitable partner can be overcome by first doing a thorough due diligence of the market and the partner. We in Market Matters do regularly monitor the partner’s performances and activities and survey the market dynamics itself. We supervise and even mentor the partner ( disturbutor or agent) and often report back on brand-related activities, pricing, sales volume, media coverage to our clients.
“By carrying out regular surveys of the local partner, we produce market monitors which provide you with an overview of what is happening in your selected markets.”