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Reverse Innovation 43#

Simple and inexpensive products, that were developed within and for emerging markets, are also sold in industrial countries. The term ‘reverse’ refers to the process by which new products are typically developed in industrial countries and then adapted to fit emerging market needs.


Force Directed Circle

Minimum observation count: 1

Examples: Iconic Cases

Red Bull→ Procter & Gamble→ Nokia→ Hindustan Unilever→ Logitech→

How they do it: Krating Daeng is a sweetened, non-carbonated energy drink, developed in Thailand in the 1970s. It was introduced in Thailand as a refreshment for rural Thai labourers. Krating Daeng was discovered by Austrian entrepreneur Dietrich Mateschitz while working in Thailand. He subsequently introduced Red Bull in the Western market with a different formula and branding concept.
Learn more about Red Bull →

How they do it: Procter & Gamble developed a lower-price diaper line with a reduced set of features for its Brazilian market in 2010. Customers who were unable to afford the company’s more expensive diapers were willing to pay for a solution that would keep babies dry overnight, given that many co-sleep with their children. The basic tier of products now exists around the world under different brand names (e.g. Simply Dry in Western Europe).
Learn more about Procter & Gamble →

How they do it: Nokia is observing how mobile phones are used by customers in Africa and India and then incorporate those learnings for new products they introduce in the developed markets. One example is a dust and moisture proof, highly durable phone which was a great success in emerging markets and then inspired a similar version for developed markets.
Learn more about Nokia →

How they do it: The product "Knorr Stock Pot" is an example of a reverse innovation approach by Hindustan Unilever. The first country to launch in 2007 was China under the brand "Dense Soup Treasure", where there was no bouillon cube market, and soup-consumption is very high. Chinese home-cooks love the convenient way to create the dense soups their mothers and grandmothers made. In 2010, the product was introduced in the UK, Ireland, France, Spain, Belgium, Greece and many other European countries.
Learn more about Hindustan Unilever →

How they do it: When Logitech introduced its high-tech wireless computer mice in China it experienced limited interest due to the high price and the circumstance that due to the high population density wireless mice signals would interfer with each other. The company then introduced a more basic version of its mouse which it could then offer on a competitive price level. This redesign was not only in China but globally a success.
Learn more about Logitech →



Top Industries     Pattern Co-Occurrence

Below, the top industries for the pattern "Reverse Innovation" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 7 firms using this pattern.


Top Industries
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Consumer Goods
19% of firms using pattern
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Hardware
12% of firms using pattern
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Information Technology
3% of firms using pattern

All Industries

Below, the pattern "Reverse Innovation" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.


Top Co-Occurrences
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Crowdsourcing
1 pattern co-occurrences
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License
1 pattern co-occurrences
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Performance-based Contracting
1 pattern co-occurrences

All Co-Occurrences


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