Capturing Indian Rural Market Through a Proactive Tool: Reverse Innovation

Abstract

Reverse innovation defi nes to the case where an innovation is acquired fi rst in emerging economies before tricking up to rich nations. The reverse innovation concept that is spreading from developing to developed economies has been introduced by Immelt et al. (Harv Bus Rev 87:56-65, 2009) presently. Given its originality the reverse innovation concept still required to be combined with literature on features, diffusion, and the locus of innovation. Although example of reverse innovation are rare as it is still developing theoretical questions such as what types of innovations are probably spawn by the developing economies, why such innovations might spread to rich nations, what are the competitive benefi ts obtained by foreign and local companies to have fun in this process and how it infl uences the worldwide strategy and organization of multinational enterprises. Reverse innovation highlights in rich nations and sells their products in poor nations. Reverse innovation is performing the opposite. Reverse innovation also highlights the importance for reduced price point innovations emerging in developing globe to produce new market request back in richer economies. Reverse innovations also have global infl uence. Mainly, they have the importance to migrate from poor nations to rich ones. Reverse innovation needs a varied mindset fl ow of work and altogether paces for economically and socially consistent outcomes to develop. Reverse innovation fi ghts to provide a powerful message because the data it provides is proper but not varied or new. Reverse innovation has two fundamental objectives: fi rst is to support the organizations to grasp the theory underlying the process of reverse innovation and second is to offer them with practical guidance on how to perform the initiatives of reverse innovation. This study discusses in detail about the concept of reverse innovation, investigates its application in various industries in real time (Godrej, Tata Motors, and Philips), and explores how it can extend and enrich the mainstream theories of innovation. If understood and applied in a right way, reverse innovation strategy can play a signifi cant role in today's recovering markets. This is one area which is still unexplored. When world over is recovering, it is important to know that there lies a vast opportunity in exploring this new area in rural India.R. Dhillon (*) Bharati College , University of Delhi , New Delhi , India e-mail: ratidhillon@gmail.com 168 Reverse innovation can help us understand and tap rural market in India in a better way. This paper is an attempt to highlight some of the major benefi ts of adopting this marketing strategy and what should be future approach for this type of marketing strategy.

Implications of Reverse Innovation for Socio-Economic Sustainability: A Case Study of Philips China

“…However, recently emerging markets have started to capitalize on their untapped resources to generate enormous growth, resulting in an increase in average incomes for the large, thriving middle class in those markets. Additionally, developing countries are expected to contribute two-thirds of the global economic growth, which further signifies the role of emerging markets and the need to develop appropriate strategies to tap into this significant market potential [8].…”

“…Philips customized its TV to be able to operate at a voltage range of 90-270V, thereby eliminating the extra cost incurred by the installation of a voltage stabilizer. Additionally, Philips launched the first cell-battery-powered radio, which was a popular hit in rural and semi-urban areas of the Indian subcontinent, facing chronic power outages [8].…”