The Globe-Let the emerging market customer be your teacher | Supermarket | Emerging Markets

The Globe: Let Emerging Market Customers Be Your Teachers by Guillermo D’Andrea, David Marcotte, and Gwen Dixon

Morrison You can learn a lot about consumer marketing in the developing world by looking at how retailers engage with shoppers. Read the Executive Summary Print Email Purchase Article Text Size Decrease Font Size Increase Font Size Email Tweet This Post to Facebook Share on LinkedIn Print
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Sure, you’ve crafted detailed marketing plans for your products in those fast-growing emerging economies, but do you know how consumers will respond in the store aisles? If you don’t, you’re vulnerable to competitors, particularly local ones, who know how emerging market shoppers think, what they need, what they crave, and how they buy. Multinationals have been slow to understand consumers outside Europe and North America: Baseball bats were met with amusement in soccer-loving Argentina; gardening tools flopped in Latin America’s yardless neighborhoods. Unilever, having established its Ala powder detergent as a leader in southern Brazil, was unable to build a strong position in the northeastern part of the country, where women wash laundry in streams and prefer bar soap for the task. Procter & Gamble’s Always feminine hygiene line, which had done well in the United States, hit a wall in Mexico, where women did not like the product. Local retail chains, by contrast, have been quick to understand their customers and develop offerings and approaches that work for them. As a result, a new generation of retailers have steadily captured market share from savvy street vendors and momand-pop operations. They’ve also kept most multinational retailers at bay. In developing economies, the retail aisle is where the marketing action is—it’s where customers make purchasing decisions. McKinsey studies show that in China, for example, as many as 45% of consumers make those decisions inside stores, compared with 24% in the United States. To understand how the top local chains have been so successful, we conducted a study in 2009 of large retailers in six countries. We chose homegrown leaders representing a variety of ownership models, formats, and organizational types—from family owned to public, from supermarkets to consumer electronics stores, and from hierarchical to flat. They include Beijing Hualian Group (China), Biedronka (a Polish firm owned by Portuguese retailer Jerónimo Martins), BIM (Turkey), Magazine Luiza (Brazil), Pick n Pay (South Africa), and Supermercados Peruanos (Peru). In this article, we’ll explain the challenges these retailers have encountered in catering to the emerging market consumer and show that the solutions they’ve come up with offer important lessons to multinationals. By tapping into the wisdom of these market leaders, you can put yourself a big step ahead of your competitors, both local and global.

Copyright © 2010 Harvard Business School Publishing Corporation. So you can create a mass market for a sophisticated new product (think MP3 players) by first winning the approval of early adopters in the upper segments of the pyramid and then simplifying the offering and reducing the price until the product is accepted by the much larger segments at the bottom. 2. 3. 1. Most of these challenges are unfamiliar to retailers accustomed to functioning only in developed economies. Already an online or premium subscriber? Sign in or register now to activate your subscription.com) is the senior vice president of retail insights at Kantar Retail. Written By Guillermo D’Andrea (gdandrea@iae. department heads. All rights reserved. Harvard Business Review Article . store managers. David Marcotte (david.ar) is a professor of management at IAE Business School in Buenos Aires and the research director of the Coca-Cola Retailing Research Council. Where’s the demographic middle? In developed countries.marcotte@kantarretail. part of the WPP Group.edu. subscribe now or purchase a single copy PDF. Print Email Purchase Article Login to continue reading To continue reading. Latin America. there are some problems that all the companies we studied have faced. and corporate executives.The Lay of the Land In extensive interviews with shoppers. income groups form a more or less classic pyramid. we discovered that despite significant differences among markets and populations. 1.

Gwen Dixon Morrison 8 pages. Prod. what they crave. they've been vulnerable to local competitors that know how their shoppers think. Instead. and how they buy. As a result. Turn your stores into centers of learning. Cater to consumers' tendency to buy a lot of the cheapest products and a little of the best by providing decent quality at the low end and aspirational choices at the high end. In emerging markets. the number of affluent consumers who could champion your product is small. As a result. Read More » Multinational retailers have been slow to understand consumers in the developing world. Instead. where shoppers can fill the gaps in their product knowledge. .. David Marcotte. 2010. they've been vulnerable to local competitors that know how their shoppers think. Expect the unexpected and develop quick reflexes--you'll need them to deal with the rapid market expansion and demographic change of emerging economies. Publication date: Dec 01. the number of affluent consumers who could champion your product is small. These local retailers offer some valuable lessons: Forget the myth that the high end is the most lucrative segment. and how they buy.Let Emerging Market Customers Be Your Teachers by Guillermo D'Andrea. and the wealthy tend to favor shopping trips abroad. aim your products at low-income segments from the start. These local retailers offer some valuable lessons: Forget the myth that the high end is the most lucrative segment. #: R1012K-HCB-ENG Write the First Review Multinational retailers have been slow to understand consumers in the developing world. and the wealthy tend to favor shopping trips abroad. what they crave. aim your . In emerging markets..

incomes don’t form a smooth continuum. formats. Most important. BIM (Turkey). have been quick to understand their customers and develop offerings and approaches that work for them. the retail aisle is where the marketing action is—it’s where customers make purchasing decisions. many of them overseas. was unable to build a strong position in the northeastern part of the country. where women wash laundry in streams and prefer bar soap for the task. as many as 45% of consumers make those decisions inside stores. They include Beijing Hualian Group (China). As a result. Magazine Luiza (Brazil). Customers buy the cheapest or the best. and from hierarchical to flat. Whether the economy is strong or weak. Multinationals have been slow to under-stand consumers outside Europe and North America: Baseball bats were met with amusement in soccer-loving Argentina. both local and global. The Lay of the Land In extensive interviews with shoppers. and corporate executives. where women did not like the product. and Supermercados Peruanos (Peru). In developing economies. for example. We chose homegrown leaders representing a variety of ownership models. The distribution looks less like a pyramid than like a small stone (the wealthy) perched on a thin column (the upper middle class) that stands on a vast base (the middle and lower classes). and they tend to gravitate toward specific luxury stores. who know how emerging market shoppers think. They’ve also kept most multinational retailers at bay. In emerging markets. department heads. you’ve crafted detailed marketing plans for your products in those fast-growing emerging economies. Unilever. we conducted a study in 2009 of large retailers in six countries. McKinsey studies show that in China. gardening tools flopped in Latin America's yardless neighborhoods. Biedronka (a Polish firm owned by Portuguese retailer Jerónimo Martins). The number of affluent consumers who could adopt and champion your product remains small. and organizational types—from family owned to public. . what they crave. what they need. Where’s the demographic middle? In developed countries. that strategy doesn’t work. we discovered that despite significant differences among markets and populations. Procter & Gamble’s Always feminine hygiene line. but do you know how consumers will respond in the store aisles? If you don’t. a new generation of retailers have steadily captured market share from savvy street vendors and mom-andpop operations. In this article. store managers. we’ll explain the challenges these retailers have encountered in catering to the emerging market consumer and show that the solutions they’ve come up with offer important lessons to multi-nationals. So you can create a mass market for a sophisticated new product (think MP3 players) by first winning the approval of early adopters in the upper segments of the pyramid and then simplifying the offering and reducing the price until the product is accepted by the much larger segments at the bottom. hit a wall in Mexico. which had done well in the United States. you’re vulnerable to competitors. Pick n Pay (South Africa).Let Emerging Market Customers Be Your Teachers 01/12/201 0 Guillermo D'Andrea Ver original Harvard Business Review Sure. particularly local ones. having established its Ala powder detergent as a leader in southern Brazil. and how they buy. Most of these challenges are unfamiliar to retailers accustomed to functioning only in developed economies. com-pared with 24% in the United States. by contrast. To understand how the top local chains have been so successful. there are some problems that all the companies we studied have faced. you can put yourself a big step ahead of your competitors. Local retail chains. from supermarkets to consumer electronics stores. By tapping into the wisdom of these market leaders. income groups form a more or less classic pyramid.

But in areas with low incomes. are now largely urban—75% of Brazil’s and 47% of China’s citizens live in cities. but it can put an offering at a distinct disadvantage in an emerging economy. those in emerging economies face the daunting task of keeping up with rapid market expansion and demographic change. They might show up at the register with a high-end digital camera. aver-age incomes have been rising steadily. In developed economies. once mainly rural. Markets are changing at breakneck speed. So are employees. greatly increasing shoppers’ purchasing power. often omitting the middle entirely. Instead. despite recent setbacks due to the global downturn. they may be baffled by products and packaging that developed world consumers would comprehend instantly. cosmetics. As a result. Multinationals. and. Brazil. Multinationals may feel they’ve got the quality issue covered. is a crucial element of high quality in developed countries. They tend to know the exact price of everything they want and refuse to pay more. greater financial resources. But consumers who are moving into the formal economy tend to lack knowledge about such things as what products can do. enamored of the middle and the high end. Consumers. Nor do they fully understand what the consumer society is and how it works. many of whom grew up using complex products and have some higher education. favoring the lowest-priced items that offer acceptable quality. often miss that fact. Product knowledge may be lacking. shoppers care most about quality. Finally. In developed countries. for ex-ample. The allure of status isn’t enough to induce consumers to buy. not status. even when it comes to luxuries. Western retailers learned the hard way that their packaging often discouraged shoppers in China. now issues IDs that are like credit cards. Emerging market consumers focus on essentials. even if that means they must purchase an individual piece or two from an opened package in a traditional outdoor market. many companies successfully position their brands as status symbols. Consequently. Thus they purchase a lot of the cheapest and a little of the best. The consumer base is growing constantly. that strategy often falls flat. They also refuse to buy in greater quantities than they need. posing an obstacle for retailers’ efforts to educate shoppers. some countries are making it easier for consumers to get and use credit. and cheap sunglasses. medium-quality linens. Store employees in emerging economies suffer from the same lack of knowledge. Modern packaging.developed market consumers tend to buy across the price spectrum. but it’s not always that simple. In addition. . and how to access companies’ offerings. unlike most developed world retailers. and plasma TVs. consumers in all income segments are sophisticated and knowledgeable about retail offerings. for example. Consumers care about quality. in many cases. why various services might improve their lives. conveying artificiality or lack of freshness to consumers accustomed to shopping in traditional markets. who are used to handling food products before buying them. shoppers typically save up to indulge in more aspirational categories such as sport shoes. they have new needs and. At the same time.

arranging credit. Forget multinationals’ cherished myth that the high end is the most lucrative segment in emerging markets. it must be a center of knowledge and learning. Moreover. and it carries an endorsement from Peru’s heart association. it offers good nutritional value. a store must be much more than a source of basic necessities and a target for aspirations. the Peruvian company Malteria Lima (part of Peru’s leading brewer. the transportation infrastructure is weak or nonexistent: There was still no nearby bus terminal when the Wong Group built a shopping center in the low-income North Cone area of Lima. increasing utilization during off-peak hours. with a few pluses: It comes in onemeal servings. The product provides the breakfasts that customers are used to. Aim low. company managers reasoned). turning salespeople . aim your products at the low-income segments from the very beginning. But the solutions share certain broad features. adapting its solutions to the needs of target customers. Marketing Solutions Each retailer we studied deals with these problems in its own way. And they devote extensive resources to on-the-job training. Successful retailers figured out long ago that in an emerging market. Instead. adding a few centavos to them whenever they could. many retailers. Adapt to consumers’ habits. and forget about using the demographic pyramid to create a mass market for your gadget. make a concerted effort to connect with the very lowest earners. retailers often display the broadest possible range of items. Even if there were a sizable affluent segment to get the product started. In many areas. Rather than position its packaged barley breakfast as an alternative to Quaker Oats’ high-end offering. It wasn’t that customers planned to make very short calls. even if that means stocking limited quantities of each. when rates were lower. Don’t just sell—educate. but the company tripled its sales when it al-lowed users to recharge for tiny amounts. which have far-reaching implications for multinationals’ marketing strategies. those customers tended to make calls at night. its chocolate flavoring improves the taste.Rapid growth may sound great. For example. there’s little elasticity of demand in the lower segments. you’d have to trim off so many bells and whistles that it would become unrecognizable. Leave the rich to their shopping trips abroad. Grupo Backus) marketed it as a less-expensive purchase for the lower end. they were using the cards as savings vehicles. To entice them and educate them about products. but emerging market retailers face enormous challenges in keeping customers and facilities safe. To make your product affordable for the masses. who visit stores mainly out of curiosity and for entertainment. including South Africa’s Pick n Pay. Cater to the demand for the cheapest and the best by providing decent quality at the low end and aspirational choices at the high end. and getting people to and from stores. The telecommunications company Tigo at first hesitated to lower the minimum recharge on its phone cards in Paraguay (you can’t make much of a call for a centavo.

who also receive information from presentations on TV screens through-out the stores. Emerging market retailers have a great deal to teach multinationals about flexibility. health. and arrange for home delivery. the best way to approach an emerging market is with openness and a sense of discovery. . Perhaps no les-son from these retailers is more important than the value of nimbleness.400 locations. and learning English. Salespeople assist customers with the online catalog. Multinationals need to learn to be just as flexible.ar) is a professor of management at IAE Business School in Buenos Aires and the research director of the Coca-Cola Retailing Research Council. housekeeping. Guillermo D’Andrea (gdandrea@iae.edu. new employees receive a month of training prior to deployment. offers a limited assortment of high-quality foods at more than 1. rapid adaptation.into frontline educators. In China’s big cities. navigating the internet. Develop quick reflexes. At Magazine Luiza. These stores allow Magazine Luiza —a technology-focused company founded a half-century ago—to keep pace with Brazil’s booming middle class without building and maintaining expensive. Latin America. and alert to the unexpected as emerging market retailers. Poland’s largest retail chain. THE LESSONS of emerging market retailers derive from the companies’ experience of vying for consumers’ affections against scrappy competitors amid the economic shocks and disruptions that are endemic to the developing world. and the company continues to emphasize knowledge development even after employees have achieved high levels of expertise. establish credit terms. Customers are on a journey toward greater affluence. and expecting the unexpected—qualities that have helped the chains stay competitive. large-footprint facilities. food safety is a customer priority. and your job as a marketer is to understand the realities of that journey. They also limit the need for transporting inventory along poor roads amid heavy traffic. The most successful brands are those that stand for quality and reliability. Because of long-standing supply-chain problems in Poland. Biedronka. taking the time to understand local markets and adjusting to changes in consumers’ attitudes and innovations in selling. Magazine Luiza is nimble and adaptable in its deployment of no-inventory stores: 300 locations where customers can find salespeople and online catalogs but no physical items for sale. These salespeople then transfer their knowledge to customers. In places where consumers object to packaging on food. quick. Focus your brands appropriately. customers of the grocer BHG can learn where a product originated and how it got to market (in refrigerated trucks. for example) just by passing it under a scanner in a special kiosk. The policy has won strengthened customer loyalty. close the sale. provide product knowledge. In fact. additional information helps allay concerns about lack of freshness. on such topics as cooking. one of Brazil’s largest appliance and home electronics retailers. so the chain advertises that every day 200 of its items are tested by an independent laboratory.

part of the Wpp group.com) is CEO for the Americas and Australia of Wpp’s the store.com) is the senior vice president of retail insights at Kantar Retail.David Marcotte (david.marcotte@kantarretail. . Gwen Dixon Morrison (gmorrison@wpp.

2008. turning them into fans who will sing your praises to their friends and colleagues.HBS Press Chapter Develop a Community of Promoters--By Listening: Let Customers Show You How to Delight Them by Fred Reichheld 27 pages. This chapter was originally published as Chapter 9 of "The Ultimate Question: Driving Good Profits and True Growth. #: 8169BC-PDFENG Write the First Review What does it take to convert more customers into promoters for your organization? This chapter suggests that you need to listen to your customers to find innovative ways to delight them. Publication date: Feb 19. turning them into fans who will sing your praises to their friends and colleagues." « Hide E ." mail this What does it take to convert more customers into promoters for your organization? This chapter suggests that you need to listen to your customers to find innovative ways to delight them. This chapter was originally published as Chapter 9 of "The Ultimate Question: Driving Good Profits and True Growth. Prod.

more customer-focused decisions. and duration of value-creating customer relationships. Learn more about customer placement value. 2004. The barriers have to do with the ways firms are organized. and track information. make decisions. In reality. there are ways to understand better the intrinsic value of customers. however. it could maximize its own value by boosting the number. Still. #: U0408D-PDF-ENG Write the First Review If a company truly understood each customer's lifetime value. very few companies can measure customer lifetime value. Learn more about customer placement value. and track information. however.. Read More » If a company truly understood each customer's lifetime value.Do You Know How Much Your Customers Are Really Worth to You? by Uta Werner 2 pages. Prod. Publication date: Aug 01. very few companies can measure customer lifetime value. . it could maximize its own value by boosting the number.. Still. make decisions. The barriers have to do with the ways firms are organized. or CPV. scope. there are ways to understand better the intrinsic value of customers. and duration of value-creating customer relationships. scope. In reality. or CPV. which can offer p. which can offer powerful insights and help management make better.

2.95 Buy it now » Winning in Emerging Markets: A Road Map for Strategy and Execution by Tarun Khanna. Orit Gadiesh.The Globe: Let Emerging Market Customers Be Your Teachers by Guillermo D’Andrea. David Marcotte.00 . Read the Executive Summary 1. and Gwen Dixon Morrison You can learn a lot about consumer marketing in the developing world by looking at how retailers engage with shoppers. Print Email Purchase Article Text Size Decrease Font Size Increase Font Size Email Tweet This Post to Facebook Share on LinkedIn Print FEATURED PRODUCTS Doing Business in China (HBR Article Collection) by Richard Burkholder. Xiaoguang Fang. 3. et al. Krishna Palepu $35. $17.

compared with 24% in the United States. by contrast.Buy it now » Winning in the World's Emerging Markets. you’re vulnerable to competitors. what they need. you’ve crafted detailed marketing plans for your products in those fast-growing emerging economies. was unable to build a strong position in the northeastern part of the country. Multinationals have been slow to understand consumers outside Europe and North America: Baseball bats were met with amusement in soccer-loving Argentina. particularly local ones. In this article. Pick n Pay (South Africa). from supermarkets to consumer electronics stores. BIM (Turkey). what they crave. as many as 45% of consumers make those decisions inside stores. gardening tools flopped in Latin America’s yardless neighborhoods. and organizational types—from family owned to public. have been quick to understand their customers and develop offerings and approaches that work for them. where women wash laundry in streams and prefer bar soap for the task. a new generation of retailers have steadily captured market share from savvy street vendors and momand-pop operations. They’ve also kept most multinational retailers at bay. hit a wall in Mexico. and how they buy. McKinsey studies show that in China. We chose homegrown leaders representing a variety of ownership models. To understand how the top local chains have been so successful. where women did not like the product. Unilever. but do you know how consumers will respond in the store aisles? If you don’t. and Supermercados Peruanos (Peru). which had done well in the United States. for example. As a result. having established its Ala powder detergent as a leader in southern Brazil. By tapping into the wisdom of these . Thomas Hout. Procter & Gamble’s Always feminine hygiene line. the retail aisle is where the marketing action is—it’s where customers make purchasing decisions. and from hierarchical to flat. David Michael. They include Beijing Hualian Group (China). Biedronka (a Polish firm owned by Portuguese retailer Jerónimo Martins). we conducted a study in 2009 of large retailers in six countries. formats. Local retail chains. who know how emerging market shoppers think.95 Buy it now » Sure. et al. $17. In developing economies. Magazine Luiza (Brazil). we’ll explain the challenges these retailers have encountered in catering to the emerging market consumer and show that the solutions they’ve come up with offer important lessons to multinationals. 3rd Edition (HBR Article Collection) by Arindam Bhattacharya.

The Lay of the Land In extensive interviews with shoppers.market leaders. Where’s the demographic middle? In developed countries. Print Email Purchase Article Login to continue reading To continue reading. Commun Disqus ity L . and corporate executives. Already an online or premium subscriber? activate your subscription now. you can put yourself a big step ahead of your competitors.edu. So you can create a mass market for a sophisticated new product (think MP3 players) by first winning the approval of early adopters in the upper segments of the pyramid and then simplifying the offering and reducing the price until the product is accepted by the much larger segments at the bottom. subscribe now or purchase a single copy PDF.com) is CEO for the Americas and Australia of WPP’s The Store. All rights reserved. Gwen Dixon Morrison (gmorrison@wpp.marcotte@kantarretail. David Marcotte (david. Written By Guillermo D’Andrea (gdandrea@iae. income groups form a more or less classic pyramid. store managers. Comments Like Dislike 2 people liked this. there are some problems that all the companies we studied have faced.ar) is a professor of management at IAE Business School in Buenos Aires and the research director of the Coca-Cola Retailing Research Council. part of the WPP Group.com) is the senior vice president of retail insights at Kantar Retail. Latin America. Most of these challenges are unfamiliar to retailers accustomed to functioning only in developed economies. both local and global. Copyright © 2010 Harvard Business School Publishing Corporation. we discovered that despite significant differences among markets and populations. department heads.

ogin A bout Disq us Glad you liked it. Like ReplyReply 0 new comment was just posted. 3. 3. In Turkey local supermarket's be understand their customer and win the market competition. Like ReplyReply Gopu 6. 7. aralbatman 2 months ago 2. Would you like to share? Facebook Twitter Share No thanks Sharing this page … Thanks! Close Showing 2 comments Popular now Sort by Subscribe by email Subscribe by RSS 0 new comment was just posted. 5. (Pause) ADD NEW COMMENT Optional: Login below. 2. Flag 8.. . 1. Show Real-time updating is enabled. 2 months ago Good attempt. Flag 4. Show 1..

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Orit Gadiesh. David Marcotte. 4. Read the Executive Summary 1.95 Buy it now » Winning in Emerging Markets: A Road Map for Strategy and Execution by Tarun Khanna. 2. 2.The Globe: Let Emerging Market Customers Be Your Teachers by Guillermo D’Andrea. 1. 3. 5. Print Email Purchase Article Text Size Decrease Font Size Increase Font Size Email Tweet This Post to Facebook Share on LinkedIn Print 1. $17. Krishna Palepu $35.00 . FEATURED PRODUCTS Doing Business in China (HBR Article Collection) by Richard Burkholder. et al. and Gwen Dixon Morrison You can learn a lot about consumer marketing in the developing world by looking at how retailers engage with shoppers. 2. 3. Xiaoguang Fang. 3.

Unilever. particularly local ones. Multinationals have been slow to understand consumers outside Europe and North America: Baseball bats were met with amusement in soccer-loving Argentina. a new generation of retailers have steadily captured market share from savvy street vendors and momand-pop operations. BIM (Turkey). and organizational types—from family owned to public. Biedronka (a Polish firm owned by Portuguese retailer Jerónimo Martins). by contrast. gardening tools flopped in Latin America’s yardless neighborhoods.Buy it now » Winning in the World's Emerging Markets. we’ll explain the challenges these retailers have encountered in catering to the emerging market consumer and show that the solutions they’ve come up with offer important lessons to multinationals. as many as 45% of consumers make those decisions inside stores. Magazine Luiza (Brazil). Thomas Hout. and from hierarchical to flat. where women wash laundry in streams and prefer bar soap for the task. we conducted a study in 2009 of large retailers in six countries. Procter & Gamble’s Always feminine hygiene line. David Michael. what they crave. They include Beijing Hualian Group (China). compared with 24% in the United States. but do you know how consumers will respond in the store aisles? If you don’t. To understand how the top local chains have been so successful. from supermarkets to consumer electronics stores. you’ve crafted detailed marketing plans for your products in those fast-growing emerging economies. McKinsey studies show that in China. for example. They’ve also kept most multinational retailers at bay. By tapping into the wisdom of these . formats. Local retail chains. $17. Pick n Pay (South Africa). which had done well in the United States. As a result. and Supermercados Peruanos (Peru). We chose homegrown leaders representing a variety of ownership models. have been quick to understand their customers and develop offerings and approaches that work for them. you’re vulnerable to competitors. who know how emerging market shoppers think. was unable to build a strong position in the northeastern part of the country. In this article. and how they buy. et al. 3rd Edition (HBR Article Collection) by Arindam Bhattacharya.95 Buy it now » Sure. having established its Ala powder detergent as a leader in southern Brazil. the retail aisle is where the marketing action is—it’s where customers make purchasing decisions. where women did not like the product. In developing economies. what they need. hit a wall in Mexico.

. there are some problems that all the companies we studied have faced. you can put yourself a big step ahead of your competitors.market leaders. we discovered that despite significant differences among markets and populations. and corporate executives. Most of these challenges are unfamiliar to retailers accustomed to functioning only in developed economies. department heads. The Lay of the Land In extensive interviews with shoppers. income groups form a more or less classic pyramid. store managers. Where’s the demographic middle? In developed countries. So you can create a mass market for a sophisticated new product (think MP3 players) by first winning the approval of early adopters in the upper segments of the pyramid and then simplifying the offering and reducing the price until the product is accepted by the much larger segments at the bottom. both local and global.

these countries have more internet users than the U. • • • • • They have a large. these geographies offer numerous attractions. India. . with an IT spending growth rate of 10. By 2014. As rapidly emerging players in the developing global IT ecosystem. Central Eastern Europe and Russia and Brazil are strategic markets you should not ignore.S.5% . and IT and IT-enabled services deployment. Together. They represent important sources of new growth and they are rapidly becoming major players in the new global IT ecosystem. They have strong capabilities in technology manufacturing.more than double the worldwide average.Globalize your On Demand Business What is an Emerging Market Opportunity? As the world economy continues to develop. a number of geographies are emerging as major opportunities for new investment. China. well-educated and technology-savvy population Over 6 million science and engineering students graduate annually Governments in these geographies are actively supporting open standards technologies like Linux. emerging geographies will represent over $150 billion of domestic IT opportunity.

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