Site MapSubscribe Contact UsHome

Identifying and Exploiting New Markets in Growing Economies

By Matt Eyring, Mark Johnson, Hari Nair

Where the growth lies

It's no secret that most companies are looking to emerging markets for future growth. According to the Economist, Western multinationals expect to find 70% of their future growth there—40% of it in China and India alone. But there’s no longer a simple entity called 'emerging market'. Markets are changing and a key to growth is learning how to create opportunity from those changes.

In trying to transplant their domestic business models, companies end up slashing margins or confining themselves to the higher-income segments, which aren’t big enough to generate sufficient returns.

One often overlooked opportunity is targeting a certain group in the huge middle market of consumers. These consumers are stuck in the limbo that our colleague Clayton Christensen calls "nonconsumption"; many of their basic needs are being met very poorly by existing low-end solutions and they cannot afford even the cheapest of the high-end alternatives.

The story of a little red refrigerator called ChotuKool shows the powerful opportunities for companies when they target this frustrated segment of the middle market. Chotukool was developed by Indian multinational Godrej & Boyce, with our help at Innosight.

Read the full article on Innovation Management

Related Insights

An Impact Story from Innosight:

Turner Broadcasting – how can you prevent new technology from disrupting your business?

Read more

An Impact Story from Innosight:

Lee Jeans – how can you reshape a shopping process and catapult a brand to #1?

Read more

Innosight showed us how the whole customer experience could be improved and enhanced, and that is helping Walgreens grow by differentiating us from everyone else in the market.

Dr. Jay Rosen
Senior Vice President of Health Innovations, Walgreens

Grow with Innosight

Interested in learning how Innosight can help your organization?

Contact us

Meet our team and explore what it's like to work at Innosight.