Developing Markets: Opportunity for Incremental Growth or Hot Houses for Brand Innovation?

Developing Markets:

Opportunity for Incremental Growth, or Hot Houses for Brand Innovation?

Are global brands missing a significant opportunity with their approach to developing markets? Is it possible for developing markets to drive more than incremental business growth? Is it possible for developing markets to become the catalyst for renewed brand growth in mature markets?

Consider a typical brand with a growing global footprint.  It likely has an established presence in mature markets. These markets are probably considered the center of gravity for the brand, garnering the bulk of global resources and driving many key global decisions. But they have also likely reached a level of diminishing growth. 

Thus they seek incremental growth in BRIC and Next 11 markets.  And they’re doing so by imposing established developed market practices, ranging from infrastructure conventions to marketing tactics on these developing markets. And because the mature markets’ size gives them an organizational edge, developing markets are left to fight for scarce resources and a voice in global decisions.

But because these markets are developing in a world unencumbered by deeply entrenched infrastructures, marketing and media practices of the mature markets, aren’t they providing brands with the unique chance to start with a clean sheet of paper? By definition, developing markets create an opportunity for brands to innovate in every aspect of the customer experience, and to do so in the context of the world today.

And the benefit of this innovation is not limited to developing markets.  Indeed they have the potential to provide significant benefit to the brand in every market. Successful innovations can be adapted to reignite growth in mature markets, and raise the brand’s stature globally.

But in order to allow this to happen, the developing markets must be regarded by the organization for their potential to create brand value beyond their incremental business contribution.  These markets should receive funding to invest in ‘brand R&D’ beyond the size of the current business opportunity, and they should have an equal seat at the brand decision table.