How to learn totally new and culturally different market
Space International started its tech journey by creating the first digital banking platform in Georgia. After proving its concept, the team set their sights on a larger market: Uzbekistan.
Transitioning from a small market to a significantly larger one is logical, but what happens when you enter a market that is culturally and technically different in almost every way? This was our main challenge. Many assumptions about human psychology and consumer behavior simply wouldn’t hold.Therefore, the first step was to thoroughly understand the new market.
Innovative Product Strategy to Compete Locally
“We aimed to provide cashless digital banking with core products like deposits, ensuring there was no toxicity to build trust for future development. Although we had a groundbreaking product, launching a fully digital banking platform in a market where Visa was uncommon and people primarily trusted cash and traditional, governmental banks was a huge risk.” — said Nikoloz, Chief Commercial Officer.The primary reason Space International accepted this challenge was the young population, which makes up about 60% of the total. This demographic was ready for innovation. Additionally, internet access was sufficient, especially in Tashkent, to support digital products.
Localizing an International Brand for Better Audience Reach
The next step was understanding local regulations, which, although different, were manageable. We adapted the product to fit the new market. Market research and focus groups helped us decide on the name, logo, and color scheme. As part of the TBC Group and a tool for globalizing the TBC brand, Space International decided to keep the name but incorporate local elements, such as colors from the Uzbek flag, leading to the creation of TBC UZ.
Building a Cohesive Team with Shared International Values
Building a local team was also crucial. “While we had a tech team in Georgia working on the app, we needed front-end and other personnel on the ground in Uzbekistan. Initially, we collaborated with a local headhunting company to get resumes that matched our profile.” — Anna, human capital lead.
Space International conducted the interviews and made the selections.
Research-Driven Market Entry Strategy
The main challenge was launching the product. Since digital banking was new to this market, we chose a mono product strategy, starting with deposits only. This data-driven approach allowed customers to gradually adopt and try new products, providing feedback to improve the user experience. Since then, we have been testing new products first on our internal team, which now has more than 1,500 people. Only after this internal testing do we launch the products to a limited group of customers before making them available to everyone.
“In the end, we are walking a thin line by introducing innovative products, progressive marketing, and gamification in such a conservative country. However, as people here have shown great acceptance, and as we are moving forward step by step, not all at once, the project has been successful from the beginning,” clarified — Mariam, engagement / loyalty commercial stream lead.
Expanding into a new and culturally different market is challenging but achievable with thorough research, local adaptation, and strategic planning. Space International’s success in Uzbekistan shows the importance of understanding and integrating into the local market while maintaining the core strengths of the original product.
