From “Premium” to “Good Enough”: Frugal Innovation in the Emerging Markets

The article explains the concept of frugal engineering, which has become crucial for companies that want to enter emerging markets. Frugal products are not cheap or inferior, but are robust and of high quality, designed to meet the needs of the local market. Frugal engineering takes into account the specific demands and financial capabilities of the target customers. The article provides examples of successful frugal innovations in different industries, highlighting the importance of local knowledge as the foundation for innovation. To develop a frugal product, companies need to follow the acronym "Frugal" - functional, robust, user-friendly, growing, affordable, and local - and focus on only a few main features that are essential for the end-users. Developing frugal products often requires access to the newest technologies and processes. The article provides practical tips for companies to implement a frugal philosophy and achieve reverse innovation.