India story: The 1 trillion opportunity
In India, the Global Emerging Middle is expected to cross the 1 trillion USD threshold by 2021 as its ranks swell to 570 million, from 470 million in 2010.
The value propositions designed for countries at the upper end of the global income spectrum seldom work sustainably to meet the needs of the Emerging Middle. Instead, companies have to develop a nuanced understanding of the aspirations and unique trade-offs of this segment and develop solutions to meet these needs. Value propositions can’t simply focus on low cost if they are also going to connect with the segment’s aspirational framework. Nor can companies treat the Emerging Middle as a homogeneous set of customers. Differences based on location (urban vs. rural), age, religion, and language require customised products and services based around a standard and scalable platform. The right value proposition will fuel rapid growth.
Globally, businesses are looking at the 'Next 4 Billion' nations for growth, especially now, given the slowdown in mature economics. Businesses who function in this group (includes India, China, Indonesia parts of Africa and Latin America where over 4 billion of the world's 7 billion reside) have traditionally focussed on the middle and upper middle income tiers....