Booming economies and great perspectives in LATAM´s e-commerce can seduce any international merchant, but how to overcome this fragmented market and increase sales? Smilegate, the multinational game developer, shares some thoughts about this issue.
Exponential business growth would sound unlikely especially in countries in LATAM where problems with low internet access, difficult cross-border transactions and multiple changing regulations were rough.
The main challenges, according to the multinational company Smilegate, are concentrated in distribution and unstable economies with low GDP. Basically, merchants who decide to expand business in LATAM had to face difficulties with pricing and marketing for virtual items in a recent past. For the gaming segment, it could be even harder because several countries still rely on PC Cafes/Lan Houses, so a strong local distribution network is crucial to expand your online game. This requires work on the ground which many publishers are not prepared to do.
Businesses that surpass these barriers with strategic plan, however, can reach millions of customers thirsty for high quality entertainment. In this case, Smilegate took its essence and literately translated to local preferences, languages and designed special content and marketing campaigns for each specific market.
As a result, sales are growing exponentially. Over the past five years, the company is reaching more and more game players and viewership especially in the Southern Cone. Now, it is a matter of keeping up business with new titles and customized services for an enjoyable experience no matter the customer’s language, currency or region.
As a multinational company looking forward to a very specific and fragmented market like LATAM, Smilegate recognizes that each public requires local experience and dedicated support. This is their secret! A diverse team with experts from different countries in Latin America that allows the company to understand e-shoppers’ behavior better and offer their games/services in an efficient way. As piece of advice, having localized contents, pricing, and marketing strategy for each market are crucial for any company to succeed.
Founded in 2002, Smilegate is currently the 5th largest game development company in Korea and the company responsible for CrossFire, one of the most played online FPS games in the world, with more than 8 million concurrent users. The company employs more than 2,000 gaming enthusiasts who are working on several new titles that are planned to be released next year.