Leveraging Reverse Innovation to Take Your Organization Global

Reverse innovation involves creating new products specifically designed to meet the unique needs of lower-income demographics and emerging markets worldwide. Companies who successfully embrace this strategy can increase their profits dramatically while attracting more customers and enhancing their brand recognition globally. For example, LG's low-cost air conditioner designed for middle and lower-middle-class families in India is 30% cheaper than competitors' models while cooling rooms more efficiently. Fast-food chains also design regional menu options, but the instant noodle products which run on hot water are becoming increasingly popular in developing nations due to their affordability and convenience. By manufacturing reverse-engineered products, companies can increase their profitability, improve access to modern technologies, and empower equity globally. In order to reverse innovate, companies must perform local market research to identify the needs of emerging markets, revisit prototypes, and utilize new technologies to create basic products that cater to underserved individuals.