TODAY -

Market creating innovations & economic development

Anand Laishram *



In the last article, we got an introduction into what Market Creating Innovations mean.

We learnt that Market Creating Innovations make existing products & services on the market:
- Affordable
- Accessible
- Simpler
- Less Time Consuming

This allows people who couldnít use these products & services to meet their needs and solve their problems and make the progress they want to make.

These people are termed non-consumers. Due to various barriers (Affordability, Accessibility, Expertise&Time), they canít avail themselves of the solutions they need. They make do with work arounds, which arenít as effective and efficient, or they just live with the problems, opting for basically nothing to solve those problems.

Market Creating Innovations break down one or more of the four barriers, thereby allowing non-consumers to consume the solutions they need and make the desired progress in their lives. In short, we could say that Market Creating Innovations democratize solutions make them available to everyone.

We discussed that there are other types of innovationĖSustaining and Efficiency Innovations. Sustaining innovations improve an existing product or a service already available on the market. These are necessary from the point of view of the businesses selling those products or services. By continually improving them, they make those products or services more attractive for the existing market.

An example would be car manufacturers introducing new features or new colour options for their existing product lines.

Efficiency innovations allow producers to produce the same products or services, without requiring as many resources. Efficiency innovations help producers and manufacturers cut costs, which they can pass on to customers or improve their profit margins.

An example would be the famous Toyota Production System, which helped Toyota reduce costs and improve quality. Sustaining and Efficiency Innovations are very important for both businesses as well as customers.

However, they donít turn non-consumers into consumers and thereby create new markets, which is what Market Creating Innovations do. An example would be that of the Ford Model T, that we have delved into in earlier articles. Market Creating Innovations have a profound impact on the local economy.

In the process of producing the goods and services that people want and need to buy, various resources are pulled into the economy. As those resources are undergirded by the market processes, they remain sustainable.

A road built into a developing economy with the hope that they would help encourage economic development activities may soon be left unrepaired and unusable. A road built in order to move products from the factories to where they are to be sold, will be maintained because it is vital for the market to function.

They also create jobs such as marketing, sales, service etc. which are necessary to serve the newly unlocked customers. These jobs are called local jobs. They are less in danger of being outsourced, as these jobs need to be performed where the customers are.

(Manufacturing jobs and the like are called global jobs. They get moved from location to location, based on the costs involved. Example: All the manufacturing jobs that left North America and went to low-cost regions)

China is the worldís largest manufacturer of microwave ovens. Many microwave manufacturers target the export markets. They take advantage of Chinaís low production costs and outcompete microwave manufactured in other parts of the globe.

However, if a cheaper manufacturing location emerges, perhaps Vietnam, then manufacturing of those microwaves may shift to the new location.

In contrast, the Chinese microwave manufacturer Galanz decided to serve the local Chinese market itself. Microwave ovens were unaffordable for the vast sections of the Chinese population. At the same time, large numbers of people were migrating from villages to the urban areas in search for better economic opportunities. Most of them lived in tiny cramped apartments and had busy work-lives.

Galanz saw an opportunity for low-cost microwave ovens targeted at the local market. Microwave ovens would help the newly arrived economic migrants cook their food easily and quickly, without heating up their cramped living spaces.

They streamlined their operations to manufacture microwave ovens at lower costs and sell them to this segment of the population which traditionally had not been consumers of microwave ovens. They also invested in activities that other export-oriented manufacturers didnít have to.

They introduced knowledge marketing, wherein they educated new consumers on how to use microwave ovens, through newspaper adverts.
(Exporters didnít have to educate the local Chinese public, since their microwave ovens were not targeted at the domestic Chinese market)

They also created lots of local sales, manufacturing, servicing jobs etc. (not just manufacturing jobs). In order to distribute their products, they built distribution centres, factories, showrooms, offices etc. and built a Nationwide sales network.

They have also invested in sophisticated R&D facilities, in order to serve the market better. Galanz today is one of the largest microwave manufacturers in the whole world. Not only do they earn billions of dollars in revenues, they have also created tens of thousands of local jobs.

Thus, Market Creating Innovations, can have enormous positive effects on the economic development of a society.

We will see more examples in the coming weeks.


* Anand Laishram wrote this article for The Sangai Express
This article was webcasted on May 04 2022 .



* Comments posted by users in this discussion thread and other parts of this site are opinions of the individuals posting them (whose user ID is displayed alongside) and not the views of e-pao.net. We strongly recommend that users exercise responsibility, sensitivity and caution over language while writing your opinions which will be seen and read by other users. Please read a complete Guideline on using comments on this website.




LATEST IN E-PAO.NET
  • Top 3 Museums in Manipur
  • COVID-19 Status 28 June : Govt of Manipur
  • Opening a new door : A Closure
  • 100 Trees Planted in memory of Dr Kishan
  • Serendipity :: Poem
  • The Agnipath Yojana : Deify or demonise ?
  • On Govt's move to carry out delimitation
  • Fertiliser : Govt assures, farmers unsatisfied
  • More than putting vehicle into motion
  • COVID-19 : Impact in Manipur :: News Timeline
  • ILP Check point at Jiri : Gallery
  • COVID-19 Status 27 June : Govt of Manipur
  • The untold story, lest it be forgotten
  • Assistance to victims of Assam Flood
  • A glimpse of 'Yangna Paikhredako Punshi'
  • Market innovations in developing country
  • Anti-drug day expose state pathetic situation
  • The wedge amongst the Nagas
  • Coming of Manipur University in 1980
  • COVID-19 Status 26 June : Govt of Manipur
  • Laitonjam Lanchenba: Best Swimmer
  • Our capital Imphal - the city of sanity
  • Workshop : ND & PS Act, 1985
  • Mara Prabhu - Lord of the trees
  • Essence of international anti-drug day
  • July 1 : Taking the fight to plastic
  • Miss Shirui Lily 2022 #3 : Gallery
  • COVID-19 Status 25 June : Govt of Manipur
  • Flesh Trade : Connection between Goa & NE
  • Importance of Soil Testing & Management
  • ST status Vs Classical language for Meetei
  • Life, faith and belief
  • MANISFA General Secretary appointed
  • Flood Watch : 23rd June #2 : Gallery
  • COVID-19 Status 24 June : Govt of Manipur
  • Community led in ensuring HIV treatment
  • Approach to ideology & development
  • Solar Energy solution for healthcare facility
  • Yoga for health, beauty and immunity
  • Innovation Prize Launched for Designers
  • Knotty higher education sector
  • Classical language status and ST demand
  • Flood Watch : 23rd June #1 : Gallery
  • COVID-19 Status 23 June : Govt of Manipur
  • Birds and Bees Talk launched 3rd phase
  • Luck matters, Rio's first entry into cabinet...
  • Need to deal with dumping of waste materials
  • Training on mushroom at Nagamapal
  • 1961 as base year: Take it or leave it
  • 10 years too late : JCILPS
  • Phamnaiba Jagoi @ Thangjing : Gallery
  • COVID-19 Status 22 June : Govt of Manipur
  • Women's cleanliness enjoys equal rights...
  • Life in some hill villages
  • The MCI Restoration II
  • 'BRO Cafes' on 75 border roads
  • Protest over boundary row headache for Govt
  • Issues on the indigenous question
  • Drug Menace In Manipur : Gallery
  • COVID-19 Status 21 June : Govt of Manipur
  • ST tag for Meiteis - A perspective!
  • Manipur State Welfare : Politics 1-0 Citizens
  • International Yoga Day at Assam Rifles
  • International Yoga Day at IBSD Imphal
  • International Yoga Day at NSU Imphal
  • Manipur Lokyukta: Fighting against corruption
  • Vision to distribute local rice under NFSA...
  • Taking the fight to the drug menace
  • Landslides - Imphal-Jiri [Jun 17] : Gallery
  • COVID-19 Status 20 June : Govt of Manipur
  • Thangjing in folklore of Koireng tribe
  • Health Workshop on Diabetes at Pune
  • Everyone is a thief :: Poem
  • E- barton for CM & Governor
  • Intensive cultivation of vegetables
  • High time to encourage e-vehicle operators
  • Scripting success story with Rs 500
  • Leima Jagoi by Transgender #1 : Gallery
  • COVID-19 Status 19 June : Govt of Manipur
  • June 19 2022 : Father's Day message
  • Nine Hills One Valley : Ottawa Film Fest
  • Shirui Lily Festival or mud festival ?
  • Yoga for Women organised
  • Flight link to Mandalay dream come true
  • Action of Govt needs to be backed
  • 21st Great June Uprising #1 : Gallery
  • COVID-19 Status 18 June : Govt of Manipur
  • The Great June 18 Uprising :: News Timeline
  • Revive environmentalism in Meetei ethos
  • COVID-19 Status 17 June : Govt of Manipur
  • Elephant army of Lord Guruvayurappan
  • Who will be next at Rashtrapati Bhawan
  • Hiyang Tannaba @ Loktak #1 : Gallery
  • Freedom movement against British #2
  • Inequity and health security
  • Donating blood is an act of solidarity
  • Unregulated deposit schemes & BUDS Act
  • Extension of entry age : Agnipath
  • Citizens feeding on adulterated food items
  • Of food safety and street vendors
  • Pooja Elangbam, IAS, 81st ranker in AICS
  • COVID-19 Status 16 June : Govt of Manipur
  • NE Model @Delhi Kids Fest : Gallery
  • Manipur Rajkunja
  • Effective Legal Aid to Women Prisoner
  • How to avoid cracked heel during hot summer
  • Aid to artisan must to promote local product
  • Education for whom ?
  • Kabui Dance @Nongshaba Haraoba : Gallery
  • COVID-19 Status 15 June : Govt of Manipur
  • 'Let's Talk About It' : music album
  • Significance of World Environment Day
  • The MCI Restoration
  • North East CSR Award 2022
  • Prolonged sitting or standing spoils your leg
  • State fast-tracking towards drug making hub
  • 'Progression' from smuggling to manufacturing
  • Bonny Elangbam : Longest distance covered
  • COVID-19 Status 14 June : Govt of Manipur
  • Interaction with Makakmayum Hosni Mubarak
  • India to become $5 trillion economy
  • Exploring traditional medicines of NE
  • Freefall of the kids after COVID-19
  • Honour the tax payers, expose defaulters
  • NE needs more than 'unprecedented'
  • Miss Shirui Lily 2022 #2 : Gallery
  • COVID-19 Status 13 June : Govt of Manipur
  • Water management in paddy cultivation
  • PM Modi hails Nagaland Gaon Burahs
  • Blight of Nature :: Poem
  • Moreh as Las Vegas
  • NHIDCL's reputation at stake
  • Drugs, poppy & 'alternatives'
  • Thaopai Shithaine of Poumai #2 :: Gallery
  • COVID-19 Status 12 June : Govt of Manipur
  • Jadonang Park, Tamenglong :: Gallery
  • Freedom movement against British #1
  • Multi-Tasking Staff at Leima Traders
  • Toning down rhetoric that hurts religion
  • Shirui Lily fest brings to fore plastic menace
  • Conservation of pony & grazing fields
  • Kakwa Lairembi Haraoba #2 :: Gallery
  • COVID-19 Status 11 June : Govt of Manipur
  • The unheeded cry of children in labour
  • Why present distribution of urea fails?
  • World Day Against Child Labour 2022
  • Sunrise on the Civil Aviation Horizon
  • Arambam Samarendra Ningshingba :: Gallery
  • COVID-19 Status 10 June : Govt of Manipur
  • NE Ex-Super Model at Delhi Kids Fest
  • What Diphu has, Dimapur & Kohima don't
  • Towards Manipur Budget 2022-23 ...
  • NE Social & Behaviour Change inaugurated
  • Fighting corruption remains an uphill task
  • Environment needs more than tree plantation
  • SN Chand: The father of Manipuri cinema #3
  • COVID-19 Status 09 June : Govt of Manipur
  • Degree Certificate for Survival #2
  • Value chain management of Umorok
  • Pulses for Nutrition Security in Manipur
  • Keeping your skin oil free during summer
  • Demand for impartial probe into IMC scam
  • Politics of isolating the NSCN (IM)
  • Raas @Manipur Rajbari, W Bengal :: Gallery
  • COVID-19 Status 08 June : Govt of Manipur
  • A rare book on Birds of Manipur
  • Condemns bomb blast in Manipur
  • Market Innovations made America great #2
  • Jal Jeevan Mission : PHED Manipur
  • Disturbing data on lifestyle diseases in state
  • Tough talk against drug menace
  • Trekking to Shirui Peak, Ukhrul #2 :: Gallery
  • COVID-19 Status 07 June : Govt of Manipur
  • Take a leaf from sunderban if you're serious
  • Testimony of brother Ninghor Mahongnao
  • Local leaders unitedly push for One Health
  • Letters from the Republic of Dust #2
  • Soil testing for better crop production
  • Despicable threat to school
  • Outrage at Little Flower School
  • Ibudhou Thangjing Lam Thokpa #3 :: Gallery
  • COVID-19 Status 06 June : Govt of Manipur
  • India-Taiwan Global Bamboo Tech Forum
  • Condemns bomb attack at LFS
  • RSS chief sounds logical
  • Career options in Environmental Science
  • We reap what we sow
  • NRC in focus as keyboard warriors spar...
  • Coming together of COCOMI, UNC
  • HSE Result 2022 : Statistiscal Abstract
  • HSE Result 2022 : Subject Pass Percentage
  • HSE Result 2022 : District-Wise Pass %
  • HSE Result 2022 :Science Topper
  • HSE Result 2022 : Arts Topper
  • HSE Result 2022 : Commerce Topper
  • HSE Result 2022 : Science Stream Result
  • HSE Result 2022 : Arts Stream Result
  • HSE Result 2022 : Commerce Stream Result
  • COVID-19 Status 05 June : Govt of Manipur
  • Nagaland: Is it fair to blame Indrajit Gupta ?
  • 4th Plenary Session of WMC at Sugnu
  • World Environment Day at Tamenglong
  • World Environment Day at Lilong
  • World Environment Day at Haraorou
  • Musing :: Poem
  • Yet another World Environment Day observed
  • Mounting pressure for solution
  • Padmashree Award Moirangthem Muktamani
  • COVID-19 Status 04 June : Govt of Manipur
  • Congested road at Shirui Village :: Gallery
  • Degree Certificate for Survival #1
  • Admission for National Sports University
  • World Environment Day at Imphal
  • Include Meeteis in the ST list
  • Inhumane act of De-addiction centres
  • UK band Monuments @ShiRock #2 :: Gallery
  • COVID-19 Status 03 June : Govt of Manipur
  • 'Provocation' charges arrests on social media
  • Gerinda Loitongbam: Natl Women Award
  • Timeless Memories :: Poem
  • Ket Meth releases music video Trauma'
  • 8 years of Modi Govt: More hits than misses
  • Bad example commanders
  • Posers parents may raise within
  • Miss Shirui Lily 2022 #1 : Gallery
  • Lunghar (Imp-Kohima / Jessami) #3 : Gallery
  • Wakhom Leikai Lairembi Haraoba #2 : Gallery
  • Naga Indigenous Wrestling :: Gallery
  • June Calendar for Year 2022 : Tools
  • UK band Monuments @ShiRock #1 :: Gallery
  • Ibudhou Thangjing Lam Thokpa #2 :: Gallery
  • SN Chand: The father of Manipuri cinema #2
  • Licypriya speech at East Timor :: Gallery
  • On 200th Anniversary of MK Binodini Devi
  • Featured Front Page Photo 2022 #2: Gallery
  • Harvesting Fest of Tarao #4 :: Gallery
  • Id-ul-Fitr @Hatta Golapati :: Gallery
  • Rules of English Pronunciation : Download
  • Sub-Syllables in English : Book Download