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Innovation in Emerging Markets

2010-05-10

Innovation

Electric light was not invented by the improvement of candle!

Innovation is a new way of doing something or new stuff that is made useful. It may refer to incremental revolutionary changes in thinking, products, processes, or organizations. (wiki)

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Innovation in Emerging Markets

Japans Post-war Miracle

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Count Your Consumer

Economic Growth getting richer faster in any time

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Economic Growth getting richer faster in any time

Rest of the World

Other Emerging Markets China & India

High-quality & Cost-effective Brainpower

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R&D in emerging markets

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Innovation meets challenges

How to appeal to the billions of people who live outside Shanghai & Bangalore

So many consumers are at the middle or bottom of the income pyramid -> go for volume Piracy is so commonplace -> keep updating Ambition to bestride the world stage Fear of even cheaper competitors (Vietnam, Cambodia)

How to compete with the local companies, driven by

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Frugal Innovation

#1 Being sparing in the use of raw materials

Frugal Innovation

#2 Taking the needs of poor consumers as a starting point and working backwards

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Frugal Innovation

#3 Rethinking entire production processes and business models

Frugal Innovation

#4 Consumer culture in emerging markets is far more varied than in mature market.

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