Emerging economies are still one of the most reliable growth engines in a slower global environment – yet many expansion plans fail for a mundane reason: products don’t consistently make it onto shelves, into carts, or into customers’ hands. The barrier is rarely “market potential.” It’s the mechanics of distribution, retail execution, and frontline capability in markets where channels are fragmented, retailers are small, and the route-to-market keeps evolving.
Large-scale market analysis highlights just how important the prize is: emerging markets are home to more than 4.3 billion people and have accounted for about half of global GDP growth over the past decade. But capturing that prize requires a different go-to-market operating model than the one that works in mature markets.
One signal is performance dispersion. Comparative analysis in fast-moving categories finds that companies with more mature GTM capabilities can outperform laggards by roughly 4 percentage points in compound annual revenue growth and 6 percentage points in profit growth in parts of Asia. In other words: GTM is not “execution hygiene.” It’s a profit lever.
Why GTM breaks in emerging markets
The friction is structural. Retail can be massively fragmented – one example cites 1.4 million stores across seven channels in the Philippines, and more than 15 million FMCG outlets in India (plus ~1 million more in other categories). Retailers are often small; a cited benchmark puts average monthly sales at $3,000–$4,000, which drives frequent replenishment and limits assortment depth.
Then there’s the frontline reality. Many sales reps have limited formal training, and attrition can reach ~30% annually – making “capability” a moving target. Finally, the channel landscape doesn’t sit still: new formats emerge quickly, forcing companies to revise their route-to-market design far more often than they would in developed economies.
A practical playbook: six GTM moves that scale
1) Segment the market like a portfolio, not a country
A single national strategy is usually too blunt. Winning approaches segment by consumer profile, geography, and product, then adapt price-pack architecture, channel mix, and coverage model to each segment. The logic is simple: your “best” customers and your “best” channels vary dramatically between a top-tier city, a mid-tier city, and rural demand pockets.
What good looks like
- Micro-segmentation beyond big cities (including mid-tier cities and rural clusters)
- Different portfolios for different formats (e.g., premium vs. value SKU strategy by channel)
2) Treat channel partners as an extension of your operating model
In many categories, channel partners are the route to reach scale – particularly for general trade. In some emerging-market categories, general-trade partners service the small retailers that represent around 80% of sales.
The strategic shift is to manage partners with the same discipline applied to internal teams: clear selection criteria, minimum infrastructure requirements (warehouse capacity, sales manpower, capital deployment), and incentive systems that reward the outcomes you need.
What good looks like
- Incentives linked to sales targets, mix, and market expansion – reported examples go up to ~50% of incentive design
- Channel simplification where it improves economics and control (including pruning long partner tails)
3) Win at the “last meter” with in-store execution
In fragmented retail, the store is the marketing channel. Best-in-class companies run structured programs to improve retail execution and build retailer databases because market data is often incomplete.
A common pattern is to focus disproportionately on the outlets that matter most. One example tags about 10% of retailers as “A-class,” contributing ~30% of sales, ~50% of premium sales, and 70%+ of new-launch sales – then increases visit frequency and execution intensity accordingly.
Where selective investment pays off
- Perfect-store programs (visibility, display, cold-chain, promoters) in priority outlets
- Digital billing and data integration with distributors to build a reliable execution view
4) Build an “alternate channel engine,” not a side project
Fast-growing channels can scale quickly because they solve pain points for retailers or convenience needs for consumers. Examples include quick commerce and B2B e-commerce portals that replace some in-person sales coverage.
Quick commerce in India, for instance, is described as delivering in as little as ten minutes via app-based platforms. The strategic point isn’t the delivery time – it’s that new channels change how packs, promotions, and supply chains should be designed.
What good looks like
- Channel-specific packs and value propositions (not copy-paste from modern trade)
- Agile portfolio and supply chain decisions as channel mix shifts
5) Redesign the sales organization for throughput reality
In fragmented markets, throughput per outlet is lower, and coverage needs are higher. That forces choices on the mix of internal vs. outsourced coverage, new roles (trade marketing, influencer management, business development), and hybrid servicing (physical + virtual) to reduce cost-to-serve.
A reported model includes serving lower-volume stores less frequently, mixing physical visits with virtual touchpoints to keep coverage economical.
A practical design checklist
- Coverage model by store tier (visit frequency, service level, assortment ambition)
- Performance management using leading + lagging KPIs (execution, not just sales)
6) Make digital the backbone, not the add-on
In high-fragmentation contexts, digital becomes the only scalable way to coordinate people, partners, and outlets. Some leading organizations are described as operating sales forces of ~20,000 working with 3,000+ partners and ~10 million retailers – scale that effectively requires data capture, analytics, and workflow tooling.
The shift is from “tools” to “system”: rep apps for route planning and next-best actions, dashboards for leaders, and partner portals for targets and promotions. Reported outcomes include productivity lifts of 15%+ after rolling out digital suites. Cost barriers are also falling – examples cite SaaS solutions as low as $7 per user per month for key use cases.
How to apply this to internationalisation beyond FMCG
These six moves generalize well across industries that rely on fragmented channels – building materials, consumer electronics, health products, and many B2B categories that depend on distributors, installers, dealers, or system integrators. The “store” becomes the “point of influence,” and the same logic applies:
- Segment demand and channel economics granularly
- Design partner governance like an operating system
- Win execution at the point where customers decide
- Build alternate channels early (digital marketplaces, B2B portals, quick delivery models where relevant)
- Redesign coverage for productivity, not headcount
- Use digital to make execution measurable and repeatable
A 60–90 day agenda to get traction fast
- Run a GTM diagnostic: segmentation, channel economics, coverage model, partner capability, execution KPIs.
- Choose 2–3 “must-win” micro-markets (city clusters + channels) and design a playbook you can replicate.
- Fix partner governance: selection criteria, minimum capabilities, incentive redesign, reporting cadence.
- Launch an execution program in priority outlets with a simple scorecard and retailer database build.
- Stand up the digital minimum viable backbone (rep workflow + basic dashboards + partner portal), then iterate.
