For the remainder of 2010, join me each day as I share some of the best consumer innovators and innovations worldwide that can help jump start your business success throughout the Piedmont Triad by customizing the innovations to help improve your business strategies and grow your company’s bottom line.
Now that virtually the entire world has joined the consumer arena, prepare for an avalanche of new brands, entrepreneurs and innovations from ‘emerging’ markets that will have global potential and appeal.
Just because these innovations and innovators are on the other side of the world, maintaining a strong bottom line in the Piedmont means knowing what is happening globally and taking advantage of proven innovations that can improve marketability for your brand.
From aggressive Chinese brands to Turkish creatives to Brazilian apparel, trendwatching.com says there is a sharp increase in world-class companies that can and will compete for consumers’ Dollars, Reais, Euros, Pounds, Rupees, Rands, or Liras.
Sure, the expansion of global markets creates new opportunities for existing well-known brands, but the real story of the rise of these new powerhouses is the new brands that are making waves, both within their domestic markets, but increasingly outside these, competing and even beating the established, entrenched incumbents at their own game.
One thing’s for certain – the range of brands that consumers covet will be even more diverse in twenty, ten or even five years.
- Both consumers and brands in emerging markets are rapidly getting wealthier, more sophisticated, more mobile, and more educated. Side effect: an abundance of confidence, enthusiasm, creativity, and entrepreneurialism.
- Many emerging markets (minus China) have younger populations, and will not be confronted with ageing populations for a long time to come, meaning an endless source of young entrepreneurs as well.
- Brands from emerging markets are well positioned to cater to other booming emerging markets, while they may be perceived around the world as less arrogant, too. On top of that, they are less hindered by too many legacy systems and thinking.
- Emerging markets will soon boast the biggest markets for everything, from cars and beers, to detergents and mobile internet: not a bad environment for innovation to take root.
Some numbers and stats:
- Developing economies “have accounted for nearly 70 percent of world growth over the past five years”. (Source: Carnegie, 2010.)
- The GDP of Emerging and Developing Economies accounted for 20% of world GDP in 2000, 34% in 2010, and an estimated 39% by 2015. (Source: IMF, 2010.)
- The global emerging middle class now stands at two billion people who spend USD 6.9 trillion a year, a figure which is expected to rise to USD 20 trillion – twice current US consumption – by 2020. (Source: McKinsey, July 2010.)
- Developing countries will account for two thirds of world trade in 2050. (Source: Carnegie, 2010.)
- The GDP of emerging markets will grow to be about 1.3 times the size of advanced economies in 2050. China will be approximately twice the size of the United States in purchasing power parity (PPP) terms. (Source: Carnegie, 2010.)
- India now has more rich households than poor, with 46.7 million high income households as compared to 41 million in the low income category. 62 per cent of Indian households belong to the middle class (Source: National Council of Applied Economic Research, August 2010.)
- 700 million people will start using the Internet in Asia in the next 5 years (Source: McKinsey; September 2010)
Rise of the Rest
No, the Rise of the Rest doesn’t mean the End of the West. ‘Established’ markets and brands will not succumb or shrivel; the South Koreans, Japanese, Swiss, Brits, Americans, French, Germans, Norwegians, Canadians, Australians and Singaporeans will continue to forever add to the innovation pile, too.
In fact, to overlook the quirkiness, creativity, heritage & provenance, chicness, clean(er) air, freedom, joie de vivre, scientific breakthrough, societal innovation and cultural exuberance found in the ‘Old World’, North America, Japan and South Korea, would be a grave mistake. Many of these countries will find themselves in the top ten of happiness and quality of living indices for many years to come.
Obviously, the list below is by no means complete. But here are some ideas from China for your business consideration:
Forever is a Shanghai based bicycle brand that was founded in the 1940s. Having fallen out of favor in the 1990s, the brand has now relaunched under the leadership of 23 year old Chen Shan, offering a range of bikes in bright colors, appealing to younger consumers. The company now sells 1.3 million bikes a year.
Liba, TeamBuy, Taobao, EnjoyMeiTian, GetGoGive and FlashBuy all enable ‘group buying’ as a shopping strategy, connecting hundreds of thousands of likeminded consumers. The sites make money from ad revenues and/or commissions from suppliers who want mobs at their store.
Lenovo, the fourth largest producer of personal computers in the world, plans to launch a gaming console, the ‘eBox’ in 2011 to rival Sony Playstation, Xbox and Nintendo Wii.
Bus manufacturer King Long has an annual production exceeding 1,300 coaches for domestic and international clients. In September 2010, the brand announced a deal with UK based Arriva for 200 buses to be sent to improve Malta’s operations.
OSPOP (One Small Point of Pride) was the first footwear brand to use Chinese workers as not only the manufacturing labor, but also the product’s design inspiration. The shoes are based on a style commonly worn by Chinese laborers but constructed with superior materials, positioned at a premium price of USD 75 and intended to appeal to Western consumers. Part of the increased cost covers improved working conditions for employees and a portion of revenue also goes to charities. The company has widened its product range to include three canvas bags, also inspired by the equipment of Chinese workers.
Consumer electronics brand Haier reported sales of over USD 17.8 billion across all divisions in 2008. The company has surpassed Whirlpool as the world’s top refrigerator producer and achieved a global market share of 6.8%.
Cosmetics giant Shanghai Jahwa re-launched its “Shuang Mei” brand under the name “Shanghai VIVE”. Its initial product line, aimed at the rapidly emerging affluent female demographic in China, includes cosmetics, jewelry and accessories, with prices ranging from Yuan 300 (USD 44) to more than Yuan 1500 (USD 221).
Herborist uses all natural, herbal-based ingredients for its line of cosmetic products that are aimed at Chinese youth. Recently the brand has exported the products to Europe and the USA.
The Shanghai Automotive Industry Corporation (SAIC) is one of the biggest Chinese auto manufacturers with joint venture links to companies such as GM, Volkswagen and Rover.
BYD is the world’s largest supplier of rechargeable batteries. Domestically, the organization has branched out into the Electric vehicle sector and US and European expansion is rumored.
Great Wall Motor is China’s biggest manufacturer of SUV vehicles. In 2010 the company teamed with Bulgarian Litex Motors and is set to open a 50,000 vehicle per year factory in Bulgaria in 2011. (Source)
Geely Automotive is one of China’s largest auto manufacturers with sales across Eastern Europe, South America and Asia. In August 2010, the organization acquired Volvo Cars from Ford Motors for a reported USD 1.8 Billion. (Source)
The Beijing Automotive Industry Holding Co. Ltd (BACI) was founded around joint ventures with Western manufacturers Jeep and Daimler-Benz. BAIC is aiming to unveil several own-brand vehicles in 2010 and wants to double overall sales to 2 million each year by 2011.
Chery International is one of China’s fastest growing auto manufacturers, with sales increasing from 2,000 units in 2000 to over 500,000 by 2009. Chery intends to build electric cars in partnership with Israel based Quantum LLC (by 2012).
China Railways Group has created the world’s longest high-speed rail network with about 7055 km of routes in China, and trains topping speeds of 350 km/h. The group is now bidding to build infrastructure in markets such as California, Brazil, Vietnam and South Africa.
In 2010 sportswear brand Li Ning pulled equal with Adidas as the number two sports brand after Nike in China. Last year it released an eco-friendly shoe called the “Green 001”. The shoe is made from eco-friendly materials such as hemp, and the marketing campaign communicates to Chinese consumers that “Environmental Protection = Trendy”. The tongue of the shoe is embroidered with the image of Wangari Muta Maathai, the founder of the Green Belt Movement and the first environmentalist to win the Nobel Peace Prize.
Tomorrow, 50+ Consumer Innovators and Innovations Worldwide continues with more innovations from China and the latest innovations from India.
For more information: www.trendwatching.com