I recently watch the discussion of SCOTT ANTHONY, BRUCE BROWN AND ERICH JOACHIMSTHALER.
In this discussion everyone participated with their own point of view. Discussion is quite interesting. But the question is how to find opportunity in emerging market.
After watching this video and listening all of them I agree with the SCOT ANTHONY. In emerging market that can lead in one of two directions. One approach aims for the rich customer who has an aggregate purchasing power. Today these customers can enjoy luxury brands, world class restaurants and high-end automobiles. The other is to aim at the bottom of pyramid that contains the new customers who beginning to gain purchasing power products and services.
The rich segment in many markets is fairly well served and sustainable competitive advantage is difficult to obtain. But success in the bottom of the pyramid is difficult and challenging. So rather than focus on where the market is today? Investor looks where the market is going to be. The opportunity in emerging market clearly defines in the middle class. In the middle class number of potential consumer are available. According to SCOTT ANTHONY, in 2009 GODREJ & BOYCE launched “Chotukool”, a $70 refrigerator targeting the 85% of Indians who found the existing refrigerator too expensive.
“Chotukool” fulfill the needs of middle class consumer. This “Chotukool” is portable battery –powered refrigerator is a huge hit and GODREJ plan to extend the “chotukool” brand to washing machines and other appliance for the benefit of middle consumers. Understanding the unique demand is another key factor to find an opportunity in emerging market. SCOTT ANTHONY also focused on the business model. For this he explained the example of Ten cent’s QQ instant messenger service. Ten cent is one of the world’s biggest internet companies; producing $1 billion in revenues per quarter.
The secret behind the ten cent success is the innovative and unique business model. This is new way to create, capture or deliver value to the customer. The most important about business model provides the sustainable competitive advantage.
At last companies need to energize their local operations and ask their office in emerging market to be innovation hot spots that generate unique insight and design and deliver the market appropriate product in the emerging market.