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.
Examples: Iconic Cases
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.
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How they do it: Since 2004, Renault and its subsidiary Dacia produce a model called ”Logan”, a small family vehicle targeted at the bottom of the pyramid. It is among the most affordable vehicles available on the market today. Initially, it was sold in markets such as Latin America or Eastern Europe. With considerable success in these markets, it has since been introduced in developed markets too.
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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.
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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: 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 →
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 5 firms using this pattern.
Top Industries
19% of firms using pattern
12% of firms using pattern
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
3 pattern co-occurrences
2 pattern co-occurrences
1 pattern co-occurrences